CVB Financial Corp. Reports Third Quarter Earnings


Oct 16, 2008

ONTARIO, Calif.--(BUSINESS WIRE)--

CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business Bank ("the Company"), announced financial results for the third quarter of 2008.

Net Income

CVB Financial Corp. reported net income of $17.5 million for the third quarter ending September 30, 2008. This represents an increase of $1.4 million, or 8.31%, when compared with net earnings of $16.1 million for the third quarter of 2007. Diluted earnings per share were $0.21 for the third quarter of 2008. This was up $0.02, or 10.45%, from diluted earnings per share of $0.19 for the same period last year. The net income for the third quarter of 2008 includes a provision of $4.0 million for credit losses. There was no such provision in the third quarter of 2007.

Net income for the third quarter of 2008 produced a return on beginning equity of 16.00%, a return on average equity of 15.55% and a return on average assets of 1.08%. The efficiency ratio for the third quarter was 54.43%, and operating expenses as a percentage of average assets were 1.79%.

Net income for the nine months ending September 30, 2008 was $50.8 million. This represents an increase of $3.6 million, or 7.58%, when compared with net earnings of $47.2 million for the same period of 2007. Diluted earnings per share were $0.61. This was up $0.05, or 9.05%, from diluted earnings per share of $0.56 for the same period last year. The net income for the nine months of 2008 includes a provision of $8.7 million for credit losses. There was no such provision in the first nine months of 2007.

Net income for the nine months ending September 30, 2008 produced a return on beginning equity of 15.97%, a return on average equity of 15.10% and a return on average assets of 1.06%. The efficiency ratio for the nine-month period was 55.54%, and operating expenses as a percentage of average assets was 1.84%.

Net Interest Income and Net Interest Margin

Net interest income, after provision for credit losses, totaled $45.0 million for the third quarter of 2008. This represents an increase of $3.3 million, or 7.92%, from the $41.7 million for the same period of 2007. This increase resulted from an $11.7 million decrease in interest expense, offset by a $4.4 million decrease in interest income and a $4.0 million increase in the provision for credit losses. The decrease in interest income was primarily due to the decrease in interest rates, partially offset by the growth in average earning assets. The decrease in interest expense was due to the decrease in the interest rates on deposits and borrowed funds, partially offset by the outstanding balances on average borrowed funds.

Net interest margin (tax equivalent) increased from 3.11% for the third quarter of 2007 to 3.43% for the third quarter of 2008. Total average earning asset yields decreased from 6.28% for the third quarter of 2007 to 5.65% for the third quarter of 2008. The cost of funds decreased from 4.16% for the third quarter of 2007 to 2.91% for the third quarter of 2008. The increase in net interest margin is due to the cost of interest-bearing liabilities decreasing faster than the decrease in yields on earning assets.

Net interest income totaled $132.9 million for the nine months ending September 30, 2008. This represents an increase of $13.1 million, or 11.00%, from the net interest income of $119.8 million for the same period in 2007. This increase resulted from a $27.9 million decrease in interest expense, which was offset by a $6.1 million decrease in interest income and an $8.7 million increase in the provision for credit losses. Net interest income before the provision for credit losses increased $21.9 million, or 18.26%, for the first nine months of 2008. The decrease in interest income was primarily due to the decrease in interest rates partially offset by the growth in average earning assets. The decrease in interest expense was due to the decreases in interest rates on deposits and borrowed funds partially offset by the increase in average borrowed funds.

The net interest margin (tax equivalent) increased from 3.02% for the first nine months of 2007 to 3.37% for the first nine months of 2008. Total average earning asset yields have decreased from 6.20% for the first nine months of 2007 to 5.75% for the first nine months of 2008. The cost of funds has decreased from 4.18% for the first nine months of 2007 to 3.10% for the first nine months of 2008.

Balance Sheet

The Company reported total assets of $6.42 billion at September 30, 2008. This represents an increase of $264.4 million, or 4.29%, over total assets of $6.16 billion as of September 30, 2007. Earning assets totaled $6.04 billion. This was up $289.7 million, or 5.04%, when compared with earning assets of $5.75 billion as of September 30, 2007. Total deposits and customer repurchase agreements were $3.56 billion as of September 30, 2008. This represents a decrease of $209.2 million, or 5.56%, when compared with total deposits and customer repurchase agreements of $3.77 billion at September 30, 2007. Gross loans and leases totaled $3.60 billion at September 30, 2008. This represents an increase of $283.6 million, or 8.56%, when compared with gross loans and leases of $3.31 billion at September 30, 2007.

Investment Securities

Investment securities totaled $2.39 billion at September 30, 2008. This was even with the $2.39 billion in investment securities at September 30, 2007. Our investment portfolio continues to perform well. We have no preferred stock nor do we have any trust preferred securities. Virtually all of our mortgage-backed securities are issued by Freddie Mac or Fannie Mae, which have the guarantee of the U.S. Government. Those that are private label issues, approximately $55 million, are performing well. Eighty-five percent of our municipal portfolio contains securities which have an underlying rating of investment grade, not withstanding the credit-enhancing insurance. Of the remaining fifteen percent of our municipal portfolio, one third is pre-refunded and the remainder is primarily comprised of general obligations.

CitizensTrust

CitizensTrust has approximately $2.5 billion in assets under administration and $839 million in assets under management at September 30, 2008 compared to $2.6 billion in assets under administration and $809 million in assets under management at September 30, 2007. They provide trust, investment and brokerage related services, as well as financial, estate and business succession planning. Income from CitizensTrust was $2.0 million in the current quarter, up $362,000 from the $1.7 million in the third quarter of 2007.

Loan and Lease Quality

The credit quality of the loan portfolio remains solid. The allowance for credit losses increased from $30.4 million as of September 30, 2007 to $40.1 million as of September 30, 2008. The increase was primarily due to the provision for credit losses of $4.0 million in the fourth quarter of 2007 and $8.7 million in the first nine months of 2008. During the first nine months of 2008, we had loan charge-offs totaling $2.0 million and recoveries on previously charged off loans of $301,000. This resulted in net charge-offs of $1.7 million. By comparison, during the first nine months of 2007, the Company had net recoveries of $20,000, and no provision for credit losses. The allowance for credit losses was 1.11% and 0.92% of total loans and leases outstanding as of September 30, 2008 and 2007, respectively.

We had $16.6 million in non-performing loans at September 30, 2008, or 0.46% of total loans. This compares to non-performing loans of $12.3 million at June 30, 2008 and $1.4 million at December 31, 2007. The non-performing loans consist of $8.0 million in residential construction and residential land loans, $2.1 million in single family mortgage loans, $6.2 million in commercial loans and $0.3 million in consumer loans.

The $8.0 million in non-performing residential construction and residential land loans consists of six loans for single family development projects to two borrower groups. The $2.1 million in non-performing single family mortgage loans consists of four single family residences from our pool of approximately 750 mortgage loans purchased over the past five years. Our last purchase of a mortgage loan pool was in August 2007. The $6.2 million in non-performing commercial loans primarily consist of two loans to a single borrower and are secured by both commercial and residential real estate. The $312,000 in non-performing consumer loans consists of one equity line of credit.

Other Real Estate Owned was $1.9 million at September 30, 2008. This was an increase of $790,000 from June 30, 2008. This was due to the addition of one single family residence from our mortgage pools of $315,000 and a residential construction loan for $475,000. We now have three properties in OREO.

At September 30, 2008, we had loans delinquent 30 to 89 days of $4.9 million. This compares to delinquent loans of $1.0 million at June 30, 2008, $18.2 million at March 31, 2008 and $2.2 million at December 31, 2007. As a percentage of total loans, delinquencies, excluding non-accruals, were 0.14% at September 30, 2008, 0.03% at June 30, 2008, 0.53% at March 31, 2008 and 0.06% at December 31, 2007.

Our construction loan portfolio totaled $359.9 million as of September 30, 2008. This represents 9.98% of our total loans outstanding at the end of the quarter. Of the $359.9 million, $115.9 million is for residential construction and residential land loans. This represents 32.21% of the construction loans outstanding, or 3.22% of our total loan portfolio. Of note, 34.51% of our construction loan portfolio is based in the Inland Empire.

Corporate Overview

CVB Financial Corp. is the holding company for Citizens Business Bank. The Bank is the largest financial institution headquartered in the Inland Empire region of Southern California. It serves 40 cities with 44 business financial centers and 4 commercial banking centers in the Inland Empire, Los Angeles County, Orange County and the Central Valley areas of California. Its leasing division, Citizens Financial Services, provides vehicle leasing, equipment leasing and real estate loan services.

Shares of CVB Financial Corp. common stock are listed on the NASDAQ under the ticker symbol of CVBF. For investor information on CVB Financial Corp., visit our Citizens Business Bank website at www.cbbank.com and click on the CVB Investor tab.

Safe Harbor

Certain matters set forth herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to the Company's current business plan and expectations regarding future operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected. These risks and uncertainties include, but are not limited to, the impact of changes in interest rates, a decline in economic conditions, adverse changes resulting from natural and manmade disasters, effects of government regulation and increased competition among financial services providers and other factors set forth in the Company's public reports including its Annual Report on Form 10-K for the year ended December 31, 2007, and particularly the discussion of risk factors within that document. The Company does not undertake, and specifically disclaims any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law.

                 CVB FINANCIAL CORP. AND SUBSIDIARIES
                      CONSOLIDATED BALANCE SHEET
                             (unaudited)
                         dollars in thousands


                                        September 30,       December
                                                                31,
                                   -----------------------  ----------
                                      2008        2007        2007
                                   ----------- -----------  ----------
 Assets:
 Cash and due from banks           $   92,421  $  125,997  $   89,486

 Investment Securities available-
  for-sale                          2,387,444   2,390,306   2,390,566
 Investment Securities held-to-
  maturity                              7,121           -           -
 Federal funds sold and Interest-
  bearing balances due from
  depository institutions                 475         570         475
 Investment in stock of Federal
  Home Loan Bank (FHLB)                92,354      80,743      79,983

 Loans and lease finance
  receivables                       3,595,337   3,311,749   3,495,144
    Less allowance for credit
     losses                           (40,058)    (30,428)    (33,049)
                                   ----------- ----------- -----------
    Net loans and lease finance
     receivables                    3,555,279   3,281,321   3,462,095
                                   ----------- ----------- -----------
          Total earning assets      6,042,673   5,752,940   5,933,119
 Premises and equipment, net           44,015      47,048      46,855
 Intangibles                           11,917      21,858      14,611
 Goodwill                              55,097      46,582      55,167
 Cash value of life insurance         106,840     102,434     103,400
 Other assets                          68,823      60,534      51,325
                                   ----------- ----------- -----------
      TOTAL                        $6,421,786  $6,157,393  $6,293,963
                                   =========== =========== ===========

 Liabilities and Stockholders'
  Equity
 Liabilities:
    Deposits:
        Demand Deposits
         (noninterest-bearing)     $1,302,205  $1,292,825  $1,295,959
        Investment Checking           327,337     349,618     409,912
        Savings/MMDA                  851,245     929,321     868,123
        Time Deposits                 714,754     863,323     790,355
                                   ----------- ----------- -----------
           Total Deposits           3,195,541   3,435,087   3,364,349

   Demand Note to U.S. Treasury         3,734         180         540
   Customer Repurchase Agreements     360,973     330,666     336,309
   Repurchase Agreements              250,000     250,000     250,000
   Borrowings                       2,006,598   1,545,500   1,753,500
   Junior Subordinated Debentures     115,055     115,859     115,055
   Other liabilities                   55,065      73,284      49,262
                                   ----------- ----------- -----------
           Total Liabilities        5,986,966   5,750,576   5,869,015
 Stockholders' equity:
    Stockholders' equity              451,049     416,491     420,818
    Accumulated other
     comprehensive income (loss),
     net of tax                       (16,229)     (9,674)      4,130
                                   ----------- ----------- -----------
                                      434,820     406,817     424,948
                                   ----------- ----------- -----------
      TOTAL                        $6,421,786  $6,157,393  $6,293,963
                                   =========== =========== ===========
                 CVB FINANCIAL CORP. AND SUBSIDIARIES
                  CONSOLIDATED AVERAGE BALANCE SHEET
                             (unaudited)
                         dollars in thousands


                           Three months ended     Nine months ended
                               September 30,         September 30,
                             2008       2007       2008       2007
                          ---------------------- ---------------------
Assets:
Cash and due from banks   $  100,408 $  118,612 $  102,942 $  121,713
Investment securities
 available-for-sale        2,433,409  2,315,265  2,456,734  2,409,872
Investment securities
 held-to-maturity              7,206          -      6,930          -
Federal funds sold and
 Interest-bearing balances
 due from depository
 institutions                    752      5,377      1,334      2,010
Investment in stock of
 Federal Home Loan Bank
 (FHLB)                       91,729     81,410     88,508     81,041

Loans and lease finance
 receivables               3,556,724  3,327,462  3,459,916  3,178,242
   Less allowance for
    credit losses            (38,634)   (30,264)   (36,067)   (28,623)
                          --------------------------------------------
   Net loans and lease
    finance receivables    3,518,090  3,297,198  3,423,849  3,149,619
                          --------------------------------------------
         Total earning
          assets           6,051,186  5,699,250  5,977,355  5,642,542
Premises and equipment,
 net                          44,783     47,189     45,907     46,232
Intangibles                   12,267      8,572     13,160      9,166
Goodwill                      55,097     60,456     55,108     41,370
Cash value of life
 insurance                   106,016    101,686    104,911    100,932
Other assets                  74,864     93,685     71,243     89,257
                          --------------------------------------------
     TOTAL                $6,444,621 $6,129,450 $6,370,626 $6,051,212
                          ============================================

Liabilities and
 Stockholders' Equity
Liabilities:
   Deposits:
       Noninterest-bearing$1,299,630 $1,316,035$1,257,843$1,289,429
       Interest-bearing    1,936,102  2,200,779  1,994,533  2,145,299
                          --------------------------------------------
          Total Deposits   3,235,732  3,516,814  3,252,376  3,434,728

  Other borrowings         2,600,493  2,049,765  2,490,488  2,063,380
  Junior Subordinated
   Debentures                115,055    115,859    115,055    110,898
  Other liabilities           46,620     47,069     63,389     43,210
                          --------------------------------------------
          Total
           Liabilities     5,997,900  5,729,507  5,921,308  5,652,216
Stockholders' equity:
   Stockholders' equity      452,553    424,765    442,378    414,340
   Accumulated other
    comprehensive income
      (loss), net of tax      (5,832)   (24,822)     6,940    (15,344)
                          --------------------------------------------
                             446,721    399,943    449,318    398,996
                          --------------------------------------------
     TOTAL                $6,444,621 $6,129,450 $6,370,626 $6,051,212
                          ============================================
                 CVB FINANCIAL CORP. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF EARNINGS
                             (unaudited)
            dollar amounts in thousands, except per share


                                     For the Three     For the Nine
                                         Months            Months
                                    Ended September  Ended September
                                           30,              30,
                                      2008     2007    2008     2007
                                    -------- ------- -------- --------
Interest Income:
  Loans and leases, including fees  $52,954$58,677$159,211$165,117
  Investment securities:
     Taxable                         22,142   20,591   65,448   65,401
     Tax-advantaged                   7,036    7,493   21,336   22,029
                                     -------  ------ --------  -------
            Total investment income  29,178   28,084   86,784   87,430
  Dividends from FHLB Stock           1,367    1,047    3,666    3,152
  Federal funds sold & Interest-
   bearing CDs with other
   institutions                           8       72       34       92
                                     -------  ------  -------  -------
            Total interest income    83,507   87,880  249,695  255,791
Interest Expense:
  Deposits                            7,417   18,445   28,233   53,531
  Borrowings and junior
   subordinated debentures           27,078   27,727   79,838   82,505
                                     -------  ------ --------  -------
            Total interest expense   34,495   46,172  108,071  136,036
                                     -------  ------ --------  -------
    Net interest income before
     provision for credit losses     49,012   41,708  141,624  119,755
Provision for credit losses           4,000        -    8,700        -
                                     -------  ------ --------  -------
    Net interest income after
     provision for credit losses     45,012   41,708  132,924  119,755
Other Operating Income:
   Service charges on deposit
    accounts                          3,829    3,340   11,381    9,827
   Trust and investment services      2,019    1,657    5,906    5,355
   Other                              2,525    2,866    7,929    8,175
                                     -------  ------ --------  -------
            Total other operating
             income                   8,373    7,863   25,216   23,357
Other operating expenses:
   Salaries and employee benefits    15,943   13,794   46,987   41,449
   Occupancy                          2,923    2,862    8,874    7,612
   Equipment                          1,888    1,743    5,556    5,293
   Professional services              1,600    1,844    5,015    4,535
   Amortization of intangible
    assets                              898    1,086    2,694    2,263
   Provision for unfunded
    commitments                        (100)     741    1,150      741
   Other                              5,905    5,148   17,558   16,070
                                     -------  ------ --------  -------
            Total other operating
             expenses                29,057   27,218   87,834   77,963
                                     -------  ------ --------  -------
Earnings before income taxes         24,328   22,353   70,306   65,149
Income taxes                          6,868    6,232   19,510   17,932
                                    -------- ------- -------- --------
    Net earnings                    $17,460  $16,121 $ 50,796 $ 47,217
                                    ======== ======= ======== ========

Basic earnings per common share     $  0.21  $  0.19 $   0.61 $   0.56
                                    ======== ======= ======== ========
Diluted earnings per common share   $  0.21  $  0.19 $   0.61 $   0.56
                                    ======== ======= ======== ========

Cash dividends per common share     $ 0.085  $ 0.085 $  0.255 $  0.255
                                    ======== ======= ======== ========
                 CVB FINANCIAL CORP. AND SUBSIDIARIES
                    SELECTED FINANCIAL HIGHLIGHTS
                             (unaudited)

                    Three months ended          Nine months ended
                       September 30,               September 30,
                     2008         2007           2008         2007
                 ------------ ------------   ------------ ------------

Interest income
 - (Tax-
 Effected) (te)  $    86,368  $    90,400    $   258,356  $   263,196
Interest Expense      34,495       46,172        108,071      136,036
                 ------------ ------------   ------------ ------------
Net Interest
 income - (te)   $    51,873  $    44,228    $   150,285  $   127,160
                 ============ ============   ============ ============

Return on
 average assets         1.08%        1.04%          1.07%        1.04%
Return on
 average equity        15.55%       15.99%         15.10%       15.82%
Efficiency ratio       54.43%       54.91%         55.54%       54.48%
Net interest
 margin (te)            3.43%        3.11%          3.37%        3.02%

Weighted average
 shares
 outstanding
    Basic         83,148,006   84,373,484     83,105,726   83,715,950
    Diluted       83,372,848   84,730,295     83,328,918   84,373,142
Dividends
 declared        $     7,088  $     7,076    $    21,239  $    21,410
Dividend payout
 ratio                 40.60%       43.89%         41.81%       45.34%

Number of shares
 outstanding-EOP  83,270,263   83,353,404
Book value per
 share           $      5.22  $      4.88


                       September 30,
                     2008         2007
                 ------------ ------------
Non-performing
 Assets (dollar
 amount in
 thousands):
Non-accrual
 loans           $    16,637  $     3,474
Loans past due
 90 days or more
 and still
 accruing
 interest                  -            -
Other real
 estate owned
 (OREO), net           1,927            -
                 ------------ ------------
Total non-
 performing
 assets          $    18,564  $     3,474
                 ============ ============

Percentage of
 non-performing
 assets to total
 loans
 outstanding and
 OREO                   0.52%        0.10%

Percentage of
 non-performing
 assets to total
 assets                 0.29%        0.06%

Allowance for
 loan losses to
 non-performing
 assets               215.78%      875.88%

Net Charge-off
 (Recovered) to
 Average loans          0.05%        0.00%

Allowance for
 Credit Losses:
 Beginning
  Balance        $    33,049  $    27,737
    Total Loans
     Charged-Off      (1,992)        (345)
    Total Loans
     Recovered           301          365
                 ------------ ------------
Net Loans
 Recovered            (1,691)          20
Acquisition of
 First Coastal
 Bank                      0        2,671
Provision
 Charged to
 Operating
 Expense               8,700            -
                 ------------ ------------
Allowance for
 Credit Losses
 at End of
 period          $    40,058  $    30,428
                 ============ ============
                 CVB FINANCIAL CORP. AND SUBSIDIARIES
                    SELECTED FINANCIAL HIGHLIGHTS
                (in thousands, except per share data)
                             (unaudited)

Quarterly Common Stock Price

                             2008            2007            2006
                        -------------- --------------- ---------------
Quarter End              High    Low    High     Low    High     Low
                        ------ ------- ------- ------- ------- -------
March 31,               $11.20 $  8.45 $ 13.38 $ 11.42 $ 15.60 $ 14.71
June 30,                $12.10 $  9.44 $ 12.40 $ 10.63 $ 15.59 $ 13.25
September 30,           $15.01 $  7.65 $ 12.71 $  9.51 $ 14.24 $ 12.83
December 31,                           $ 11.97 $  9.98 $ 14.13 $ 12.83


Quarterly Consolidated Statements of Earnings

                                 3Q      2Q      1Q      4Q      3Q
                                 2008    2008    2008    2007    2007
                               ------- ------- ------- ------- -------
Interest income
   Loans, including fees       $52,954 $52,211 $54,046 $56,692 $58,677
   Investment securities and
    federal funds sold          30,553  30,758  29,173  28,794  29,203
                               ------- ------- ------- ------- -------
                                83,507  82,969  83,219  85,486  87,880
Interest expense
   Deposits                      7,417   8,537  12,278  15,766  18,445
   Other borrowings             27,078  25,949  26,811  28,333  27,727
                               ------- ------- ------- ------- -------
                                34,495  34,486  39,089  44,099  46,172
   Net interest income
    before provision for
    credit losses               49,012  48,483  44,130  41,387  41,708
Provision for credit
 losses                          4,000   3,000   1,700   4,000       -
                               ------- ------- ------- ------- -------
   Net interest income
    after provision for
    credit losses               45,012  45,483  42,430  37,387  41,708

Non-interest income              8,373   8,702   8,140   7,968   7,863
Non-interest expenses           29,057  30,378  28,399  27,441  27,218
                               ------- ------- ------- ------- -------
Earnings before income
 taxes                          24,328  23,807  22,171  17,914  22,353
Income taxes                     6,868   6,655   5,987   4,547   6,232
                               ------- ------- ------- ------- -------
     Net earnings              $17,460 $17,152 $16,184 $13,367 $16,121
                               ======= ======= ======= ======= =======

Basic earning per common
 share                         $  0.21 $  0.21 $  0.19 $  0.16 $  0.19
Diluted earnings per
 common share                  $  0.21 $  0.21 $  0.19 $  0.16 $  0.19

Cash dividends per
 common share                  $ 0.085 $ 0.085 $ 0.085 $ 0.085 $ 0.085

Dividends Declared             $ 7,088 $ 7,058 $ 7,093 $ 7,069 $ 7,076
                 CVB FINANCIAL CORP. AND SUBSIDIARIES
                    SELECTED FINANCIAL HIGHLIGHTS
                            (in thousands)
                             (unaudited)

Distribution of Loan Portfolio

               9/30/2008  6/30/2008  3/31/2008  12/31/2007  9/30/2007
              --------------------------------------------------------

Commercial and
 Industrial   $  356,973 $  424,515 $  386,274 $   365,214 $  345,697
Real Estate:
  Construction   359,859    333,303    318,549     308,354    307,506
  Commercial
   Real Estate 1,932,778  1,851,123  1,822,610   1,805,946  1,775,812
  SFR Mortgage   341,389    351,120    356,415     365,849    363,765
Consumer          61,710     57,380     57,554      58,999     62,979
Municipal
 lease finance
 receivables     173,600    163,459    153,270     156,646    143,399
Auto and
 equipment
 leases           47,753     53,121     54,795      58,505     58,958
Dairy and
 Livestock       331,333    293,133    254,156     387,488    265,806
              --------------------------------------------------------
  Gross Loans  3,605,395  3,527,154  3,403,623   3,507,001  3,323,922
Less:
  Deferred net
   loan fees     (10,058)   (10,911)   (11,431)    (11,857)   (12,173)
  Allowance
   for credit
   losses        (40,058)   (37,310)   (34,711)    (33,049)   (30,428)
              --------------------------------------------------------
Net Loans     $3,555,279 $3,478,933 $3,357,481 $ 3,462,095 $3,281,321
              ========================================================
                 CVB FINANCIAL CORP. AND SUBSIDIARIES
                    SELECTED FINANCIAL HIGHLIGHTS
                            (in thousands)
                             (unaudited)


Non-Performing Assets & Delinquency Trends

                     September 30,  June 30,    March 31,   December
                                                               31,
                     -------------------------------------------------
                         2008         2008        2008        2007
                     ------------- ----------- ----------- -----------
Non-Performing Loans
--------------------
   Residential
    Construction and
    Residential Land $      8,020  $    9,802  $    1,535  $    1,137
   Residential
    Mortgage                2,062       1,672       1,153         298
   Commercial               6,243         551          19           -
   Consumer                   312         312           -           -
                     ------------- ----------- ----------- -----------
Total                $     16,637  $   12,337  $    2,707  $    1,435
                     ------------- ----------- ----------- -----------

% of Total Loans             0.46%       0.35%       0.08%       0.04%


Past Due 30+ Days
--------------------
   Residential
    Construction and
    Residential Land $          -  $        -  $      768  $        -
   Commercial
    Construction            2,500           -           -           -
   Residential
    Mortgage                  481         483       1,180         460
   Commercial               1,871         483      15,709       1,713
   Consumer                    55           -         533          26
                     ------------- ----------- ----------- -----------
Total                $      4,907  $      966  $   18,190  $    2,199
                     ------------- ----------- ----------- -----------

% of Total Loans             0.14%       0.03%       0.53%       0.06%

OREO
--------------------
   Residential
    Construction     $      1,612  $    1,137  $    1,137  $        -
   Residential
    Mortgage         $        315           -           -           -
                     ------------- ----------- ----------- -----------
Total                $      1,927  $    1,137  $    1,137  $        -
                     ------------- ----------- ----------- -----------

                     ------------- ----------- ----------- -----------
Total Non-
 Performing, Past
 Due & OREO          $     23,471  $   14,440  $   22,034  $    3,634
                     ------------- ----------- ----------- -----------

% of Total Loans             0.65%       0.41%       0.65%       0.10%


Total Loans             3,605,395   3,527,154   3,403,623   3,507,001

Source: CVB Financial Corp.

Contact: CVB Financial Corp. Christopher D. Myers, 909-980-4030 President and CEO