SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: April 17, 2003
Commission file number: 0-10140
CVB Financial Corp.
Incorporated pursuant to the Laws of California
Internal Revenue Service - Employer Identification No. 95-3629339
701 North Haven Avenue, Ontario, California 91764
(909) 980-4030
| Item 1. | Changes in Control of Registrant |
| Not Applicable | |
| Item 2. | Acquisition or Disposition of Assets |
| Not Applicable | |
| Item 3. | Bankruptcy or Receivership |
| Not Applicable | |
| Item 4. | Changes in Registrant's Certifying Accountant |
| Not Applicable | |
| Item 5. | Other Events |
| Not Applicable | |
| Item 6. | Resignations of Registrant's Directors |
| Not Applicable | |
| Item 7. | Financial Statements, Pro Forma Financial Information and Exhibits |
| (a) Financial Statements | |
| Not Applicable | |
| (b) Pro Forma Financial Information | |
| Not Applicable | |
| (c) Exhibits | |
| Exhibit 99 Press Release, dated April 16, 2003 | |
| Item 8. | Change in Fiscal Year |
| Not Applicable | |
| Item 9. | Regulation FD Disclosure |
| On April 16, 2003, CVB Financial Corporation issued a press release to report earnings for the quarter ended March 31, 2003. A copy of the press release is furnished as Exhibit 99 to this Form 8-K. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, hereunto duly authorized.
| CVB Financial Corp. | |
| Date: April 17, 2003 | By: /s/ D. Linn Wiley |
| D. Linn Wiley | |
| President and Chief Executive Officer |
Exhibit Index
| Exhibit 99 | Press Release, dated April 16, 2003 |
For Immediate Release Contact: D. Linn Wiley
President & Chief Executive Officer
(909) 980-4030
CVB Financial Corp. Reports Record First Quarter
ONTARIO, CA, April 16, 2003--CVB Financial Corp. (NASDAQ: CVBF), today announced record results for the first quarter of 2003. This
is the 44th consecutive quarter of record results for the Company when compared with the same results for the prior year.
Net income for the first quarter of 2003 was $12.7 million. This represents an increase of $386,800, or 3.14%, over net income of
$12.3 million reported for the first quarter of 2002. Net income of $0.29 per diluted share rose $0.01, or 3.57%, above the $0.28
per diluted share for 2002.
These earnings results produced a return on beginning equity of 19.83%, a return on average equity of 19.25% and a return on average
assets of 1.67%. The efficiency ratio for the first quarter was 46.52%.
Net income from operations for the first quarter of 2003 was $12.2 million. This represented an increase of $1.7 million, or 16.20%,
when compared with net income from operations of $10.5 million for the first quarter of 2002.
During the first quarter of 2002, the Company realized a net gain after taxes of $1.8 million from the sale of securities. This
increased earnings from $10.5 million from operations to the $12.3 million total for the quarter ended March 31, 2002. In the first
quarter of this year, the net gain after taxes from securities sales was $460,000. This increased net income from $12.2 million from
operations to a total of $12.7 million for the first quarter ended March 31, 2003.
Total assets were a record $3.4 billion as of March 31, 2003. This is an increase of $811.2 million, or 31.38%, when compared with
total assets of $2.6 billion on March 31, 2002. Total deposits of $2.3 billion were up $429.1 million, or 22.69%, over the total
deposits of $1.9 billion at the same time last year. Gross loans and leases grew to $1.5 billion. They rose $301.7 million, or
26.1%, from $1.2 billion in 2002. The Wealth Management Group has nearly $1 billion in assets under administration.
"We are extremely pleased with the positive growth trends and earnings results which we achieved during the first quarter," said Linn
Wiley, President and Chief Executive Officer of CVB Financial Corp. "We are also optimistic about the prospects for the balance of
the year."
CVB Financial Corp. reported $1.1 million in non-performing assets. This represents a ratio of non-performing assets to total assets
of 0.03% as of March 31, 2003. In addition, the allowance for loan and lease losses of $21.6 million represented 1.48% of gross
loans and leases, and 1,949.15% of non-performing loans. This compares with an allowance for loan and lease losses of $21.1 million
on March 31, 2002, which represented 1.50% of gross loans and leases and 1,572.66% of non-performing loans.
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 26 cities with 33 business financial centers in the Inland Empire, Los
Angeles County, Orange County and the Central Valley areas of California.
Citizens Business Bank announced the opening of its 33rd business financial center in Fresno on March 10, 2003. This represents
their second business financial center in the Central Valley. It complements their Central Valley initiative to build a franchise of
five to seven business financial centers between Bakersfield and Fresno.
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 Stock tab.
Safe Harbor
This document may contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to
differ materially from the projected. For a discussion of factors that could cause actual results to differ, please see the publicly
available Securities and Exchange Commission filings of CVB Financial Corp., including its Annual Report on Form 10-K for the year
ended December 31, 2002, and particularly the discussion on risk factors within that document.
CVB FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)
dollar amounts in thousands, except per share
For the Three Months
Ended March 31,
2003 2002
------------- --------------
Interest Income:
Loans, including fees $ 23,819 $ 21,125
Investment securities:
Taxable 12,384 11,137
Tax-advantaged 4,130 4,105
----------- ------------
Total investment income 16,514 15,242
Federal funds sold 12 266
----------- ------------
Total interest income 40,345 36,633
Interest Expense:
Deposits 4,516 5,292
Borrowings 4,590 4,703
----------- ------------
Total interest expense 9,106 9,995
----------- ------------
Net interest income before provision for credit losses 31,239 26,638
Provision for credit losses 0 0
----------- ------------
Net interest income after
provision for credit losses 31,239 26,638
Other Operating Income:
Service charges on deposit accounts 3,696 3,299
Wealth Management services 1,047 1,012
Gain(Loss) on sale of securities 794 3,071
Gain on sale of other real estate owned 0 0
Other 1,352 1,102
----------- ------------
Total other operating income 6,889 8,484
Other operating expenses:
Salaries and employee benefits 9,988 8,513
Occupancy 1,551 1,535
Equipment 1,492 1,453
Professional services 682 882
Goodwill Amortization 111 70
Other 3,915 3,044
----------- ------------
Total other operating expenses 17,739 15,497
----------- ------------
Earnings before income taxes 20,389 19,625
Income taxes 7,685 7,308
------------- --------------
Net earnings $ 12,704 $ 12,317
============= ==============
Basic earnings per common share $ 0.29 $ 0.28
============= ==============
Diluted earnings per common share $ 0.29 $ 0.28
============= ==============
Cash dividends per common share $ 0.12 $ 0.14
============= ==============
All per share information has been retroactively adjusted to reflect
the 5-for-4 stock split declared on December 18, 2002.
CVB FINANCIAL CORP.
CONSOLIDATED BALANCE SHEET
(unaudited)
dollars in thousands
March 31
2003 2002
-------------- -------------
Assets:
Federal funds sold and reverse repos $ 0 15,000 $
Investment Securities available-for-sale 1,763,447 1,294,261
Loans and lease finance receivables 1,457,685 1,155,977
Less allowance for credit losses (21,616) (21,074)
-------------- -------------
Net loans and lease finance receivables 1,436,069 1,134,903
-------------- -------------
Total earning assets 3,199,516 2,444,164
Cash and due from banks 109,164 75,440
Premises and equipment, net 30,527 29,733
Goodwill and intangibles 15,608 6,413
Other assets 41,545 29,383
-------------- -------------
TOTAL $ 3,396,360 2,585,133 $
============== =============
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Demand Deposits(noninterest-bearing) $ 893,067 746,121 $
Investment Checking 196,958 169,811
Savings/MMDA 665,983 559,337
Time Deposits 564,487 416,095
-------------- -------------
Total Deposits 2,320,495 1,891,364
Other borrowings 723,000 380,000
Other liabilities 86,699 90,103
-------------- -------------
Total Liabilities 3,130,194 2,361,467
Stockholders' equity:
Stockholders' equity 242,681 213,523
Accumulated other comprehensive income
(loss), net of tax 23,485 10,143
-------------- -------------
266,166 223,666
-------------- -------------
TOTAL $ 3,396,360 2,585,133 $
============== =============
CVB FINANCIAL CORP.
CONSOLIDATED AVERAGE BALANCE SHEET
(unaudited)
dollars in thousands
Three months ended March 31
2002 2001
-------------- -------------
Assets:
Federal funds sold and reverse repos $ 889 54,956 $
Investment securities available-for-sale 1,469,166 1,143,423
Loans and lease finance receivables 1,434,083 1,160,999
Less allowance for credit losses (21,662) (20,683)
-------------- -------------
Net loans and lease finance receivables 1,412,421 1,140,316
-------------- -------------
Total earning assets 2,882,476 2,338,695
Cash and due from banks 112,391 102,377
Premises and equipment, net 29,875 30,163
Other real estate owned, net 0 0
Goodwill and intangibles 15,733 6,445
Other assets 36,500 26,768
-------------- -------------
TOTAL $ 3,076,975 2,504,448 $
============== =============
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing $ 893,495 731,146 $
Interest-bearing 1,394,383 1,138,695
-------------- -------------
Total Deposits 2,287,878 1,869,841
Other borrowings 470,519 375,877
Other liabilities 51,030 30,014
-------------- -------------
Total Liabilities 2,809,427 2,275,732
Stockholders' equity:
Stockholders' equity 241,916 214,875
Accumulated other comprehensive income
(loss), net of tax 25,632 13,841
-------------- -------------
267,548 228,716
-------------- -------------
TOTAL $ 3,076,975 2,504,448 $
============== =============