SECURITIES AND EXCHANGE COMMISSION
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) |
(Commission file number) |
(I.R.S. employer identification number) |
701 North Haven Avenue, Ontario, California (Address of principal executive offices) |
91764 (Zip Code) |
Registrant’s telephone number, including area code: (909) 980-4030
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2.):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR240.13e-(c))
Item 2.02 Results of Operations and Financial Condition
On October 20, 2004, CVB Financial Corp. issued a press release setting forth its third quarter 2004 earnings. A copy of this press release is attached hereto as Exhibit 99.1, incorporated herein by reference. This press release includes certain non-GAAP financial measures. A reconciliation of these measures to the most comparable GAAP measures is included as part of Exhibit 99.1.
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.
| Date: October 21, 2004 | By: /s/ Edward J. Biebrich Jr. Edward J. Biebrich Jr., Executive Vice President and Chief Financial Officer |
Exhibit Index
99.1 Press Release, dated October 20, 2004
Exhibit 99.1
Press Release
For Immediate Release
Contact:D. Linn Wiley
President and CEO
(909)980-4030
CVB Financial Corp. Reports Third Quarter Earnings
Ontario, CA, October 20, 2004-CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business Bank, announced record results for the third quarter of 2004. This included record deposits, record loans, record assets and record earnings. It was the strongest third quarter in the history of the Company.
Net Income
CVB Financial Corp. reported net
income of $17.1 million for the third quarter ending September 30, 2004. This represents
an increase of $3.6 million, or 26.46%, when compared with the $13.5 million in net income
reported for the third quarter of 2003. Diluted earnings per share were $0.35 for the
third quarter of 2004. This is up $0.07, or 25.00%, when compared with earnings per share
of $0.28 for the third quarter of 2003.
Net income for the third quarter of 2004 produced a return on beginning equity of 24.19%, a return on average equity of 23.34% and a return on average assets of 1.57%. The efficiency ratio for the third quarter was 45.80%, and operating costs as a percentage of average assets were 2.00%.
Net income before gains and losses from securities and the sale of real estate was $16.8 million for the third quarter of 2004. This was up $5.5 million, or 49.29%, from net income before gains and losses from securities and the sale of real estate of $11.2 million for the third quarter of 2003. These results produced a return on beginning equity of 23.79%, a return on average equity of 22.96%, and a return on average assets of 1.54%. The corresponding efficiency ratio for the third quarter of 2004 was 46.07%, and operating costs as a percentage of average assets was 2.00%.
Net income for the nine months ending September 30, 2004 was $44.6 million. This represents an increase of $5.9 million, or 15.16%, when compared with net earnings of $38.7 million for the same period of 2003. Diluted earnings per share were $0.91. This was up $0.12, or 15.19%, from diluted earnings per share of $0.79 for the same period last year.
Net income for the nine months ending September 30, 2004 produced a return on beginning equity of 20.78%, a return on average equity of 20.10% and a return on average assets of 1.45%. The efficiency ratio for the nine-month period was 48.77%, and operating expenses as a percentage of average assets were 2.08%.
Net income before gains and losses from securities and the sale of real estate was $45.0 million for the nine months ending September 30, 2004. This represents an increase of $9.0 million, or 25.09%, when compared to net earnings before gains and losses from securities and the sale of real estate of $36.0 million for the same nine months period in 2003. These results produced a return on beginning equity of 20.98%, a return on average equity of 20.30%, and a return on average assets of 1.46%. The related efficiency ratio for the nine months period was 48.61%, and operating costs as a percentage of average assets were 2.08%.
The Company sold one of its buildings in Pasadena during the third quarter of 2004. This building houses the Pasadena Business Financial Center and the Wealth Management Group. The Company has agreed to lease back the Pasadena Business Financial Center space for five years and the Wealth Management Group space for two years.
The sale of the building resulted in a gross gain of $2.1 million of which $1.7 million is required to be deferred and amortized as an adjustment to rental expense over the life of the leases. The Company recognized $419,000 of the gain during the third quarter.
Net Interest Income and Net Interest Margin
Net interest income (before provision
for credit losses) totaled $39.9 million for the third quarter of 2004. This represented
an increase of $8.5 million, or 27.17%, over the net interest income of $31.4 million for
the third quarter of 2003. These increases resulted from an $11.7 million increase in
interest income, offset by a $3.1 million increase in interest expense.
Net interest income (before provision for credit losses) totaled $111.4 million for the nine months ending September 30, 2004. This represented an increase of $18.2 million, or 19.55%, over the net interest income of $93.2 million for the same period of 2003. This increase resulted from a $23.1 million increase in interest income, partially offset by a $4.9 million increase in interest expense. The increases in interest income were primarily due to the increase in average earnings assets.
Net interest margin (tax equivalent) for the third quarter of 2004 was 4.08%. This represents a slight increase when compared to the 3.95% for the third quarter of 2003. Asset yields for the third quarter of 2004 were 5.26%, compared with asset yields of 5.01% for the third quarter of 2003. The cost of funds was 1.73% and 1.58% for the same periods, respectively.
Net interest margin (tax equivalent) for the first nine months declined from 4.17% for the first nine months of 2003 to 4.01% for the first nine months of 2004. Asset yields have declined from 5.37% for the first nine months of 2003 to 5.15% for the first nine months of 2004. This has been mitigated by the strong growth in the balance sheet, and the decline in the cost of funds from 1.80% to 1.68% for the same periods. The margin compression appears to be moderating with the recent stability of interest rates. The Company has approximately $1.30 billion, or 45.45%, of its deposits in interest free demand deposits. This should position it well for a rising interest rate environment.
Balance Sheet
The Company reported total assets of
$4.35 billion at September 30, 2004. This represented an increase of $690.9 million, or
18.87%, over total assets of $3.66 billion on September 30, 2003. Earning assets totaling
$4.08 billion were up $654.4 million, or 19.11%, when compared with earning assets of
$3.42 billion as of September 30, 2003. Deposits of $2.87 billion grew $254.1 million, or
9.72%, from $2.61 billion for the prior year. Demand deposits of $1.30 billion jumped
$183.4 million, or 16.37%, from $1.12 billion. Gross loans and leases of $2.01 billion on
September 30, 2004 rose $380.1 million, or 23.32%, from $1.63 billion on September 30,
2003.
Total assets of $4.35 billion as of September 30, 2004 reflect an increase of $498.4 million, or 12.93%, over total assets of $3.85 billion on December 31, 2003. Earning assets of $4.08 billion were up $436.2 million, or 11.97%, during the same period. Deposits of $2.87 billion on September 30, 2004 grew $207.4 million, or 7.80%, from $2.66 billion as of December 31, 2003. Demand deposits of $1.30 billion were up $161.1 million, or 14.10%, from $1.14 billion. Gross loans and leases of $2.01 billion increased $249.9 million, or 14.20%, from $1.76 billion on December 31, 2003. Total equity of $310.1 million on September 30, 2004 was up $23.4 million, or 8.15%, from $286.7 million as of December 31, 2003.
Investment Securities
Investment securities totaled $2.04
billion as of September 30, 2004. This represents an increase of $172.5 million, or 9.25%,
when compared with $1.87 billion in investment securities as of December 31, 2003. It
represents an increase of $259.6 million, or 14.59%, when compared with the $1.78 billion
for the third quarter of 2003.
Assets Under Administration
The Wealth Management Group has over
$1.2 billion in assets under administration. They provide trust, investment and related
services.
Loan and Lease Quality
CVB Financial Corp reported
non-performing assets of $689,000 as of September 30, 2004. This represents a ratio of
non-performing assets to total assets of 0.02%, and it represents 0.03% of gross loans and
leases. The allowance for loan and lease losses was $23.1 million as of September 30,
2004. This represents 1.15% of gross loans and leases. It compares with an allowance for
loan and lease losses of $23.8 million, or 1.46% of gross loans and leases on September
30, 2003. Non-performing loans and leases represented 2.99% of the allowance for loan and
lease losses. Non-performing assets decreased by $944,000 from the $1.6 million reported
as of September 30, 2003.
The Company has not made a provision for loan and lease losses due to the high quality of its loan portfolio. This has been the case even though loans increased from $1.63 billion as of September 30, 2003 to $2.01 billion as of September 30, 2004. Recoveries of $3.5 million and the addition of $2.8 million from acquisitions more than offset charge offs of $2.5 million during this twelve-month period.
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 30 cities with
37 business financial centers in the Inland Empire, Los Angeles County, Orange County and
the Central Valley areas of California. Its subsidiary, Golden West Financial Services,
provides vehicle leasing, equipment leasing and real estate loan services.
CVB Financial Corp. was recently recognized at the Annual Strategic Issues Summit with the “Market Cap” Award. This Award was presented to recognize the Company for producing a return to its original shareholders of 41,034% — over 400 times the original investment. This is the highest return in the history of the banking industry in California. The Strategic Issues Summit is co-sponsored by Carpenter & Company and the California Bankers Association.
For the second year, the Company received the KBW Honor Roll award at the Annual Community Bank Investor Conference hosted by Keefe, Bruyette & Woods, Inc. in New York on July 27, 28 and 29, 2004. This award was presented to the 31 banks in the United States that have reported increased earnings per share every year for the past ten years.
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
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, 2003, and particularly the discussion on risk factors
within that document.
_________________
| CVB FINANCIAL CORP. CONSOLIDATED BALANCE SHEET (unaudited) dollars in thousands | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30,
|
December 31,
| ||||||||||
| 2004
|
2003
|
2003
| |||||||||
| Assets: | |||||||||||
| Federal funds sold and reverse repos | $ | -- | $ | -- | $ | -- | |||||
| Investment Securities trading | -- | -- | -- | ||||||||
| Investment Securities available-for-sale | 2,038,322 | 1,778,751 | 1,865,782 | ||||||||
| Investment in stock of Federal Home Loan Bank (FHLB) | 53,439 | 39,448 | 37,966 | ||||||||
| Loans and lease finance receivables | 2,009,875 | 1,629,775 | 1,759,941 | ||||||||
| Less allowance for credit losses | (23,068 | ) | (23,787 | ) | (21,282 | ) | |||||
| Net loans and lease finance receivables | 1,986,807 | 1,605,988 | 1,738,659 | ||||||||
| Total earning assets | 4,078,568 | 3,424,187 | 3,642,407 | ||||||||
| Cash and due from banks | 116,125 | 126,018 | 112,008 | ||||||||
| Premises and equipment, net | 26,865 | 31,683 | 31,069 | ||||||||
| Goodwill and intangibles | 26,012 | 26,699 | 26,901 | ||||||||
| Cash value of life insurance | 66,801 | 15,370 | 15,800 | ||||||||
| Other assets | 38,370 | 37,870 | 26,164 | ||||||||
| TOTAL | $ | 4,352,741 | $ | 3,661,827 | $ | 3,854,349 | |||||
| Liabilities and Stockholders' Equity | |||||||||||
| Liabilities: | |||||||||||
| Deposits: | |||||||||||
| Demand Deposits(noninterest-bearing) | $ | 1,303,410 | $ | 1,120,037 | $ | 1,142,330 | |||||
| Investment Checking | 228,444 | 200,572 | 227,031 | ||||||||
| Savings/MMDA | 842,401 | 715,557 | 732,992 | ||||||||
| Time Deposits | 493,682 | 577,692 | 558,157 | ||||||||
| Total Deposits | 2,867,937 | 2,613,858 | 2,660,510 | ||||||||
| Demand Note to U.S. Treasury | 5,053 | 10,251 | 3,834 | ||||||||
| Borrowings | 1,042,200 | 729,000 | 786,500 | ||||||||
| Junior Subordinated Debentures | 82,476 | -- | 82,476 | ||||||||
| Other liabilities | 44,993 | 30,896 | 34,308 | ||||||||
| Total Liabilities | 4,042,659 | 3,384,005 | 3,567,628 | ||||||||
| Stockholders' equity: | |||||||||||
| Stockholders' equity | 294,619 | 263,990 | 269,441 | ||||||||
| Accumulated other comprehensive income | |||||||||||
| (loss), net of tax | 15,463 | 13,832 | 17,280 | ||||||||
| 310,082 | 277,822 | 286,721 | |||||||||
| TOTAL | $ | 4,352,741 | $ | 3,661,827 | $ | 3,854,349 | |||||
| CVB FINANCIAL CORP. CONSOLIDATED AVERAGE BALANCE SHEET (unaudited) dollars in thousands | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Three months ended September 30, |
Nine months ended September 30, | |||||||||||||
| 2004
|
2003
|
2004
|
2003
| |||||||||||
| Assets: | ||||||||||||||
| Federal funds sold and reverse repos | $ | 109 | $ | 210 | $ | 416 | $ | 3,257 | ||||||
| Investment Securities trading | -- | -- | -- | -- | ||||||||||
| Investment securities available-for-sale | 2,013,691 | 1,758,568 | 1,941,208 | 1,621,867 | ||||||||||
| Investment in stock of Federal Home Loan Bank (FHLB) | 49,609 | 38,528 | 44,117 | 32,735 | ||||||||||
| Loans and lease finance receivables | 1,960,836 | 1,522,765 | 1,859,140 | 1,479,676 | ||||||||||
| Less allowance for credit losses | (22,751 | ) | (21,179 | ) | (22,209 | ) | (21,406 | ) | ||||||
| Net loans and lease finance receivables | 1,938,085 | 1,501,586 | 1,836,931 | 1,458,270 | ||||||||||
| Total earning assets | 4,001,494 | 3,298,892 | 3,822,672 | 3,116,129 | ||||||||||
| Cash and due from banks | 147,941 | 111,655 | 124,046 | 110,726 | ||||||||||
| Premises and equipment, net | 29,427 | 31,713 | 30,021 | 30,882 | ||||||||||
| Goodwill and intangibles | 26,134 | 15,287 | 26,431 | 15,502 | ||||||||||
| Cash value of life insurance | 66,320 | 13,234 | 55,627 | 13,093 | ||||||||||
| Other assets | 60,202 | 79,451 | 61,284 | 58,982 | ||||||||||
| TOTAL | $ | 4,331,518 | $ | 3,550,232 | $ | 4,120,081 | $ | 3,345,314 | ||||||
| Liabilities and Stockholders' Equity | ||||||||||||||
| Liabilities: | ||||||||||||||
| Deposits: | ||||||||||||||
| Noninterest-bearing | $ | 1,256,509 | $ | 1,008,109 | $ | 1,184,086 | $ | 939,725 | ||||||
| Interest-bearing | 1,572,898 | 1,475,017 | 1,545,930 | 1,432,392 | ||||||||||
| Total Deposits | 2,829,407 | 2,483,126 | 2,730,016 | 2,372,117 | ||||||||||
| Other borrowings | 1,084,854 | 741,774 | 967,152 | 641,263 | ||||||||||
| Junior Subordinated Debentures | 82,476 | -- | 82,476 | -- | ||||||||||
| Other liabilities | 43,803 | 47,149 | 44,078 | 59,354 | ||||||||||
| Total Liabilities | 4,040,540 | 3,272,049 | 3,823,722 | 3,072,734 | ||||||||||
| Stockholders' equity: | ||||||||||||||
| Stockholders' equity | 293,648 | 255,682 | 283,732 | 248,722 | ||||||||||
| Accumulated other comprehensive income | ||||||||||||||
| (loss), net of tax | (2,670 | ) | 22,501 | 12,627 | 23,858 | |||||||||
| 290,978 | 278,183 | 296,359 | 272,580 | |||||||||||
| TOTAL | $ | 4,331,518 | $ | 3,550,232 | $ | 4,120,081 | $ | 3,345,314 | ||||||
|
CVB FINANCIAL CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (unaudited) dollar amounts in thousands, except per share |
||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the Three Months Ended September 30, |
For the Nine Months Ended September 30, | |||||||||||||
| 2004
|
2003
|
2004
|
2003
| |||||||||||
| Interest Income: | ||||||||||||||
| Loans, including fees | $ | 30,061 | $ | 24,629 | $ | 83,447 | $ | 72,262 | ||||||
| Investment securities: | ||||||||||||||
| Taxable | 18,323 | 11,780 | 49,710 | 36,966 | ||||||||||
| Tax-advantaged | 3,636 | 3,938 | 11,262 | 12,088 | ||||||||||
| Total investment income | 21,959 | 15,718 | 60,972 | 49,054 | ||||||||||
| Federal funds sold | 1 | 1 | 3 | 41 | ||||||||||
| Total interest income | 52,021 | 40,348 | 144,422 | 121,357 | ||||||||||
| Interest Expense: | ||||||||||||||
| Deposits | 3,863 | 3,723 | 11,151 | 12,505 | ||||||||||
| Borrowings and junior subordinated debentures | 8,182 | 5,191 | 21,826 | 15,632 | ||||||||||
| Total interest expense | 12,045 | 8,914 | 32,977 | 28,137 | ||||||||||
| Net interest income before provision for credit losses | 39,976 | 31,434 | 111,445 | 93,220 | ||||||||||
| Provision for credit losses | -- | -- | -- | -- | ||||||||||
| Net interest income after | ||||||||||||||
| provision for credit losses | 39,976 | 31,434 | 111,445 | 93,220 | ||||||||||
| Other Operating Income: | ||||||||||||||
| Service charges on deposit accounts | 3,240 | 3,835 | 10,544 | 11,280 | ||||||||||
| Wealth Management services | 993 | 932 | 3,266 | 2,903 | ||||||||||
| Gains on sale of investment securities | 7 | 3,387 | 5,219 | 4,210 | ||||||||||
| Other-than-temporary impairment write down | -- | -- | (6,300 | ) | -- | |||||||||
| Other | 3,279 | 1,986 | 7,582 | 5,116 | ||||||||||
| Total other operating income | 7,519 | 10,140 | 20,311 | 23,509 | ||||||||||
| Other operating expenses: | ||||||||||||||
| Salaries and employee benefits | 11,970 | 10,498 | 35,323 | 30,393 | ||||||||||
| Occupancy | 2,281 | 1,771 | 5,961 | 4,944 | ||||||||||
| Equipment | 1,896 | 1,833 | 5,607 | 4,904 | ||||||||||
| Professional services | 907 | 1,037 | 3,030 | 3,020 | ||||||||||
| Amortization of intangible assets | 296 | 203 | 889 | 518 | ||||||||||
| Other | 4,402 | 5,945 | 13,450 | 13,105 | ||||||||||
| Total other operating expenses | 21,752 | 21,287 | 64,260 | 56,884 | ||||||||||
| Earnings before income taxes | 25,743 | 20,287 | 67,496 | 59,845 | ||||||||||
| Income taxes | 8,668 | 6,785 | 22,898 | 21,119 | ||||||||||
| Net earnings | $ | 17,075 | $ | 13,502 | $ | 44,598 | $ | 38,726 | ||||||
Basic earnings per common share | $ | 0.35 | $ | 0.28 | $ | 0.92 | $ | 0.81 | ||||||
| Diluted earnings per common share | $ | 0.35 | $ | 0.28 | $ | 0.91 | $ | 0.79 | ||||||
| Cash dividends per common share | $ | 0.13 | $ | 0.12 | $ | 0.37 | $ | 0.36 | ||||||
All per share information has been retroactively adjusted to reflect the 10% stock dividend declared on December 17, 2003.
|
CVB FINANCIAL CORP. AND SUBSIDIARIES SELECTED FINANCIAL HIGHLIGHTS (unaudited) | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Three months ended September 30, |
Nine months ended September 30, | |||||||||||||
| 2004
|
2003
|
2004
|
2003
| |||||||||||
| Interest income - (Tax Effective)(te) | $ | 53,184 | $ | 41,625 | $ | 148,042 | $ | 125,256 | ||||||
| Interest Expense | 12,045 | 8,914 | 32,977 | 28,137 | ||||||||||
| Net Interest income - (te) | $ | 41,139 | $ | 32,711 | $ | 115,065 | $ | 97,119 | ||||||
Other-than-temporary impairment write-down |
$ | -- | -- | $ | (6,300 | ) | -- | |||||||
| Gains on sales of securities | $ | 7 | $ | 3,387 | $ | 5,219 | $ | 4,210 | ||||||
| Gain on sale of real estate | $ | 419 | -- | $ | 419 | -- | ||||||||
| Gain on sale of OREO | -- | -- | -- | -- | ||||||||||
Return on average assets | 1.57 | % | 1.51 | % | 1.45 | % | 1.55 | % | ||||||
| Return on average equity | 23.34 | % | 19.26 | % | 20.10 | % | 18.99 | % | ||||||
| Efficiency ratio | 45.80 | % | 51.20 | % | 48.77 | % | 48.73 | % | ||||||
| Net interest margin (te) | 4.08 | % | 3.95 | % | 4.01 | % | 4.17 | % | ||||||
Weighted average shares outstanding | ||||||||||||||
| Diluted | 49,189,154 | 49,003,539 | 49,191,946 | 49,040,893 | ||||||||||
| Basic | 48,405,532 | 48,121,682 | 48,394,520 | 48,097,177 | ||||||||||
| Dividends declared | $ | 6,261 | $ | 5,206 | $ | 17,948 | $ | 15,759 | ||||||
| Dividend payout ratio | 36.67 | % | 38.56 | % | 40.25 | % | 40.69 | % | ||||||
Number of shares outstanding-EOP |
48,408,185 | 48,114,022 | ||||||||||||
| Book value per share | $ | 6.41 | $ | 5.77 | ||||||||||
September 30, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2004
|
2003
| |||||||
| Non-performing Assets (dollar amount in thousands): | ||||||||
| Non-accrual loans | $ | 689 | $ | 1,633 | ||||
| Loans past due 90 days or more | ||||||||
| and still accruing interest | -- | -- | ||||||
| Restructured loans | -- | -- | ||||||
| Other real estate owned (OREO), net | -- | -- | ||||||
| Total non-performing assets | $ | 689 | $ | 1,633 | ||||
Percentage of non-performing assets | ||||||||
| to total loans outstanding and OREO | 0.03 | % | 0.10 | % | ||||
Percentage of non-performing | ||||||||
| assets to total assets | 0.02 | % | 0.04 | % | ||||
Non-performing assets to | ||||||||
| allowance for loan losses | 2.99 | % | 6.87 | % | ||||
|
Net Charge-off (Recovered) to Average loans |
-0.09 | % | 0.04 | % | ||||
Allowance for Credit Losses: | ||||||||
| Beginning Balance | $ | 21,282 | $ | 21,666 | ||||
| Acquisition of Kaweah National Bank | 2,770 | |||||||
| Total Loans Charged-Off | (1,133 | ) | (1,673 | ) | ||||
| Total Loans Recovered | 2,919 | 1,024 | ||||||
| Net Loans Recovery (Charged-Off) | 1,786 | (649 | ) | |||||
| Provision Charged to Operating Expense | -- | -- | ||||||
| Allowance for Credit Losses at End of period | $ | 23,068 | $ | 23,787 | ||||
| CVB FINANCIAL CORP. AND SUBSIDIARIES SELECTED FINANCIAL HIGHLIGHTS (in thousands, except per share data) (unaudited) | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2004
|
2003
|
2002
| ||||||||||||||||||
| High
|
Low
|
High
|
Low
|
High
|
Low
| |||||||||||||||
| March 31, | $ | 21.30 | $ | 18.91 | $ | 23.12 | $ | 17.62 | $ | 14.66 | $ | 12.75 | ||||||||
| June 30, | $ | 21.95 | $ | 19.65 | $ | 20.08 | $ | 17.59 | $ | 17.51 | $ | 14.52 | ||||||||
| September 30, | $ | 23.37 | $ | 22.07 | $ | 19.61 | $ | 16.69 | $ | 17.04 | $ | 12.51 | ||||||||
| December 31, | $ | 19.84 | $ | 17.43 | $ | 19.44 | $ | 14.89 | ||||||||||||
|
Quarterly Consolidated Statements of Income | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 3Q 2004 |
2Q 2004 |
1Q 2004 |
4Q 2003 |
3Q 2003 | |||||||||||||
| Interest income | |||||||||||||||||
| Loans, including fees | $ | 30,061 | $ | 27,136 | $ | 26,250 | $ | 26,780 | $ | 24,629 | |||||||
| Investment securities and federal funds sold | 21,960 | 19,315 | 19,701 | 18,208 | 15,719 | ||||||||||||
| 52,021 | 46,451 | 45,951 | 44,988 | 40,348 | |||||||||||||
| Interest expense | |||||||||||||||||
| Deposits | 3,863 | 3,605 | 3,683 | 3,818 | 3,723 | ||||||||||||
| Other borrowings | 8,182 | 6,939 | 6,704 | 5,098 | 5,191 | ||||||||||||
| 12,045 | 10,544 | 10,387 | 8,916 | 8,914 | |||||||||||||
| Net interest income before | |||||||||||||||||
| provision for credit losses | 39,976 | 35,907 | 35,564 | 36,072 | 31,434 | ||||||||||||
| Provision for credit losses | -- | -- | -- | -- | -- | ||||||||||||
| Net interest income after | |||||||||||||||||
| provision for credit losses | 39,976 | 35,907 | 35,564 | 36,072 | 31,434 | ||||||||||||
| Non-interset income | 7,519 | 12,011 | 781 | 6,480 | 10,140 | ||||||||||||
| Non-interest expenses | 21,752 | 21,004 | 21,505 | 20,909 | 21,287 | ||||||||||||
| Earnings before income taxes | 25,743 | 26,914 | 14,840 | 21,643 | 20,287 | ||||||||||||
| Income taxes | 8,668 | 9,462 | 4,768 | 7,538 | 6,785 | ||||||||||||
| Net earnings | $ | 17,075 | $ | 17,452 | $ | 10,072 | $ | 14,105 | $ | 13,502 | |||||||
Basic earning per common share | $ | 0.35 | $ | 0.36 | $ | 0.21 | $ | 0.29 | $ | 0.28 | |||||||
| Diluted earnings per common share | $ | 0.35 | $ | 0.36 | $ | 0.20 | $ | 0.29 | $ | 0.28 | |||||||
Cash dividends per common share | $ | 0.13 | $ | 0.12 | $ | 0.12 | $ | 0.12 | $ | 0.12 | |||||||
Financial Measure That Supplement GAAP
Our discussions sometimes contain financial information not required to be presented by
generally accepted accounting principles (GAAP). We do this to better inform readers
of our financial statements. The SEC requires us to present a reconciliation of GAAP
presentation with non-GAAP presentation.
The following table reconciles the differences in net earnings with and without the other-than-temporary impairment write down and net gains on sale of investment securities, gain on sale of real estate in conformity with GAAP:
|
Net Earnings Reconciliation (non-GAAP disclosure): |
Three months ended September 30, |
Nine months ended September 30, | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2004
|
2003
|
2004
|
2003
| |||||||||||
| Net earnings without the other-than-temporary impairment write-down and net gain on sale of securities | $ | 16,792 | $ | 11,248 | $ | 45,036 | $ | 36,002 | ||||||
| Other-than-temporary impairment write-down, net of tax | -- | -- | (4,163 | ) | -- | |||||||||
| Net gains on sale of securities, net of tax | 5 | 2,254 | 3,448 | 2,724 | ||||||||||
| Net gains on sale of real estate, net of tax | 278 | -- | 277 | -- | ||||||||||
| Reported net earnings | $ | 17,075 | $ | 13,502 | $ | 44,598 | $ | 38,726 | ||||||
| Other-than-temporary impairment write-down | -- | -- | $ | (6,300) | -- | |||||||||
| Gains on sale of securities | $ | 7 | $ | 3,387 | 5,219 | $ | 4,210 | |||||||
| Gain on sale of real estate | 419 | -- | 419 | -- | ||||||||||
| Tax effect | (143 | ) | (1,133 | ) | 224 | (1,486 | ) | |||||||
| Net of taxes | $ | 283 | $ | 2,254 | $ | (438) | $ | 2,724 | ||||||
We have presented net earnings without the other-than-temporary impairment write down and the realized gains of investment securities, and the gain on sale of real estate to show shareholders the earnings from operations unaffected by the impact of these items. We believe this presentation allows the reader to more easily determine the operational profit of the Company.