CVB Financial Corp. (CVBF) and its subsidiary, Citizens Business Bank, announced record results for the second quarter of 2002.
This included record deposits, record loans, record assets and record earnings. It was the 41st consecutive quarter of record earnings for the company.
CVB Financial reported net income of $11.6 million for the second quarter ending June 30, 2002. This represents an increase of $2 million, or 20.68%, when compared with the $9.6 million in net income reported for the second quarter of 2001. Earnings per share for the second quarter of 2002 were $0.32 per diluted share.
This is up $0.05, or 18.52% when compared with earnings per share of $0.27 for the second quarter of 2001. Earnings results for the second quarter of 2002 produced a return on beginning equity of 21.38%, a return on average equity of 20.49% and a return on average assets of 1.81%. The efficiency ratio was 44.12%.
Net income for the six months ending June 30, 2002 was $23.9 million. This represents an increase of $5.5 million, or 29.82%, when compared with net earnings of $18.5 million for the first half of 2001. Diluted earnings per share were $0.67. This was up $0.15, or 28.85%, from diluted earnings per share of $0.52 for the same period last year.
Net income for the first half of 2002 produced a return on beginning equity of 22.01%, a return on average equity of 21.16% and a return on average assets of 1.90%. The efficiency ratio for the first half was 45.77%.
At June 30, 2002, total assets were $2.86 billion. This represents an increase of $536.2 million, or 23.04%, over the $2.33 billion in total assets reported on June 30, 2001. Total deposits rose to $2.11 billion. This is up $457.8 million, or 27.68%, from $1.65 billion last year. Gross loans and leases grew to $1.26 billion as of June 30, 2002.
This is an increase of $194.5 million, or 18.22%, from $1.07 billion in gross loans and leases on June 30, 2001. Wealth Management Group assets were approximately $1 billion on June 30, 2002.
CVB Financial reported non-performing assets of $836,000 as of June 30, 2002. This represents a ratio of non-performing assets to total assets of 0.03%. Non-performing loans were $836,000. This represents 0.07% of gross loans and leases. The allowance for loan and lease losses was $23.8 million as of June 30, 2002.
This represents 1.88% of gross loans and leases, and compares with 1.94% on June 30, 2001. Non-performing loans and leases were 3.52% of the allowance for loan and lease losses.
"We are pleased to announce the completion of two recent acquisitions," announced Linn Wiley, president and chief executive officer.
"On June 28, 2002, we consummated our acquisition of Western Security Bank in Burbank. This was a $6.23 million cash transaction. Our new Burbank Business Financial Center accounted for $149.2 million in assets, $138.6 million in deposits and $95.4 million in consolidated loans at the end of the quarter."
"The acquisition of Golden West Enterprises Inc. was completed on July 1, 2002 in a $2.9 million cash transaction," added Wiley. "Golden West is an auto and equipment leasing company based in Costa Mesa, Calif. They also provide real estate loan brokerage services. As of July 1, 2002, Golden West Enterprises Inc. had approximately $25 million in lease receivables."
Citizens Business Bank is the largest bank with headquarters in the Inland Empire Region of Southern California. It serves 25 cities with 32 business financial centers in Los Angeles, Orange, Riverside, San Bernardino and Kern counties. Shares of CVB Financial common stock are listed on the Nasdaq under the ticker symbol of CVBF.
CVB FINANCIAL CORP.
CONSOLIDATED BALANCE SHEET
(unaudited)
dollars in thousands
June 30
2002 2001
Assets:
Federal funds sold and reverse repos $ 34,200 $ 0
Investment Securities available-for-sale 1,386,427 1,120,769
Loans and lease finance receivables 1,262,166 1,067,666
Less allowance for credit losses (23,780) (20,735)
Net loans and lease finance receivables 1,238,386 1,046,931
Total earning assets 2,659,013 2,167,700
Cash and due from banks 121,499 96,398
Premises and equipment, net 29,211 27,921
Goodwill and intangibles 12,598 6,913
Other assets 41,548 28,740
TOTAL $ 2,863,869 $ 2,327,672
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Demand Deposits (noninterest-bearing) $ 832,082 $ 652,661
Investment Checking 161,144 115,371
Savings/MMDA 579,438 435,958
Time Deposits 538,850 449,733
Total Deposits 2,111,514 1,653,723
Other borrowings 449,000 424,000
Other liabilities 61,972 46,925
Total Liabilities 2,622,486 2,124,648
Stockholders' equity:
Stockholders' equity 220,360 192,824
Accumulated other comprehensive income
(loss), net of tax 21,023 10,200
241,383 203,024
TOTAL $ 2,863,869 $ 2,327,672
CVB FINANCIAL CORP.
CONSOLIDATED AVERAGE BALANCE SHEET
(unaudited)
dollars in thousands
Three months ended Six months ended
June 30 June 30
2002 2001 2002 2001
Assets:
Federal funds sold
and reverse repos $ 11,538 $ 2,852 $ 33,127 $ 3,917
Investment
securities
available-for-sale 1,294,392 1,096,248 1,219,325 1,080,762
Loans and lease
finance
receivables 1,150,845 1,058,380 1,155,894 1,050,957
Less allowance for
credit losses (21,278) (20,373) (20,982) (19,922)
Net loans and lease
finance receivables 1,129,567 1,038,007 1,134,912 1,031,035
Total earning
assets 2,435,497 2,137,107 2,387,364 2,115,714
Cash and due from
banks 102,809 92,220 102,594 95,005
Premises and
equipment, net 29,573 27,870 29,867 27,621
Other real estate
owned, net 0 341 0 350
Goodwill and
intangibles 6,383 6,963 6,420 7,160
Other assets 33,761 28,653 30,278 30,650
TOTAL $2,608,023 $2,293,154 $2,556,523 $2,276,500
Liabilities and
Stockholders' Equity
Liabilities:
Deposits:
Noninterest-
bearing $ 770,938 $ 634,249 $ 751,151 $ 622,047
Interest-bearing 1,175,312 995,955 1,157,106 984,487
Total Deposits 1,946,250 1,630,204 1,908,257 1,606,534
Other borrowings 396,946 428,052 386,469 442,522
Other liabilities 34,410 30,300 32,226 27,892
Total Liabilities 2,377,606 2,088,556 2,326,952 2,076,948
Stockholders'
equity:
Stockholders'
equity 219,186 192,511 217,409 189,987
Accumulated other
comprehensive
income (loss), net
of tax 11,231 12,087 12,162 9,565
230,417 204,598 229,571 199,552
TOTAL $2,608,023 $2,293,154 $2,556,523 $2,276,500
CVB FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)
dollar amounts in thousands, except per share
For the Three Months For the Six Months
Ended June 30, Ended June 30,
2002 2001 2002 2001
Interest Income:
Loans, including
fees $ 21,183 $ 22,876 $ 42,307 $ 46,052
Investment
securities:
Taxable 12,400 12,246 23,536 25,187
Tax-advantaged 3,952 4,064 8,056 7,817
Total investment
income 16,352 16,310 31,592 33,004
Federal funds sold 54 34 320 102
Total interest
income 37,589 39,220 74,219 79,158
Interest Expense:
Deposits 5,315 8,275 10,607 17,578
Borrowings 4,827 5,304 9,530 11,941
Total interest
expense 10,142 13,579 20,137 29,519
Net interest income
before provision for
credit losses 27,447 25,641 54,082 49,639
Provision for credit
losses 0 750 0 1,500
Net interest income
after provision for
credit losses 27,447 24,891 54,082 48,139
Other Operating Income:
Service charges on
deposit accounts 3,456 3,169 6,755 6,315
Wealth Management
services 959 897 1,971 2,007
Gain (Loss) on sale of
securities 25 519 3,096 (86)
Gain on sale of other
real estate owned 0 126 0 126
Other 1,860 1,062 2,963 3,081
Total other operating
income 6,300 5,773 14,785 11,443
Other operating
expenses:
Salaries and employee
benefits 8,637 7,893 17,149 15,826
Occupancy 1,593 1,393 3,128 2,780
Equipment 1,440 1,345 2,893 2,569
Professional services 1,182 1,072 2,063 2,327
Goodwill Amortization 40 245 79 490
Other 3,131 2,644 6,205 5,696
Total other operating
expenses 16,023 14,592 31,517 29,688
Earnings before income
taxes 17,724 16,072 37,350 29,894
Income taxes 6,085 6,428 13,393 11,441
Net earnings $ 11,639 $ 9,644 $ 23,957 $ 18,453
Basic earnings per
common share $ 0.33 $ 0.28 $ 0.68 $ 0.54
Diluted earnings per
common share $ 0.32 $ 0.27 $ 0.67 $ 0.52
Cash dividends per
common share $ 0.14 $ 0.14 $ 0.28 $ 0.28
All per share information has been retroactively adjusted to
reflect the 5-for-4 stock split declared on Dec. 19, 2001.
Three months ended Six months ended
June 31 June 30
2002 2001 2002 2001
Interest income -
(Tax Effective)(te) 39,249 40,927 77,603 82,441
Interest Expense 10,142 13,579 20,137 29,519
Net Interest income -
(te) 29,107 27,348 57,466 52,922
Gain (Loss) on sale of
securities 25 519 3,096 (86)
Gain on sale of OREO 0 126 0 126
Return on average assets 1.81% 1.71% 1.90% 1.63%
Return on average equity 20.49% 19.12% 21.16% 18.75%
Efficiency ratio 44.12% 48.60% 45.77% 48.60%
Net interest margin (te) 4.80% 5.14% 4.84% 5.02%
Weighted average shares
outstanding
Diluted 35,674,147 35,321,051 35,742,090 35,300,116
Basic 34,915,167 34,728,673 34,992,405 34,688,218
Dividend payout ratio 41.99% 46.14% 44.67% 42.15%
Number of shares
outstanding-EOP 34,901,863 34,753,534
Book value per share 6.92 5.84
June 30
2002 2001
Non-performing Assets (dollar
amount in thousands):
Non-accrual loans $835 $754
Loans past due 90 days or more and
still accruing interest 1 0
Restructured loans 0 0
Other real estate owned (OREO), net 0 0
Total non-performing assets $836 $754
Percentage of non-performing assets
to total loans outstanding and OREO 0.07% 0.07%
Percentage of non-performing assets
to total assets 0.03% 0.03%
Non-performing loans to allowance
for loan losses 3.52% 3.64%
Net loan losses to Average loans -0.10% -0.02%
Allowance for Credit Losses at
Beginning of Period:
Citizens Business Bank $ 20,469 $ 19,152
Acquisition of Western Security
Bank 2,325
Total Loans Charged-Off 54 95
Total Loans Recovered (1,040) (178)
Net Loans Charged-Off (986) (83)
Provision Charged to Operating
Expense 0 1,500
Allowance for Credit Losses at End
of period 23,780 20,735
CONTACT: CVB Financial Corp., Ontario
D. Linn Wil