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-4(c))
Item 2.02 Results of Operations and Financial Condition
On July 20, 2006, CVB Financial Corp. issued a press release setting forth its second quarter ending June 30, 2006 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.
CVB FINANCIAL CORP.
(Registrant)
| Date: July 20, 2006 | By: /s/ Edward J. Biebrich, Jr. Edward J. Biebrich, Jr., Executive Vice President and Chief Financial Officer |
Exhibit Index
99.1 Press Release, dated July 20, 2006
701 North Haven Ave., Suite 350
Ontario, CA 91764
(909) 980-4030
Press Release
For Immediate Release
Contact: D. Linn Wiley
President and CEO
(909) 980-4030
CVB Financial Corp. Reports Second Quarter Earnings
Ontario, CA, July 20, 2006-CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business Bank (“the Company”), announced record results for the second quarter of 2006. This included record deposits, record loans, record assets and record earnings. It was the strongest second quarter in the history of the Company.
Net Income
CVB Financial Corp. reported net income of $18.9 million for the second quarter ending June 30, 2006. This represents an increase of $1.4 million, or 8.23%, when compared with the $17.5 million in net earnings reported for the second quarter of 2005. Diluted earnings per share were $0.25 for the second quarter of 2006. This was up $0.02, or 8.70%, when compared with earnings per share of $0.23 for the second quarter of 2005.
Net income for the second quarter of 2006 produced a return on beginning equity of 22.13%, a return on average equity of 21.58% and a return on average assets of 1.35%. The efficiency ratio for the second quarter was 48.18%, and operating expenses as a percentage of average assets were 1.73%.
Net income for the six months ending June 30, 2006 was $37.2 million. This represents an increase of $2.0 million, or 5.62%, when compared with net earnings of $35.2 million for the same period of 2005. Diluted earnings per share were $0.48. This was up $0.03, or 6.67%, from diluted earnings per share of $0.45 for the same period last year.
As previously reported, the Company recorded the reversal of a reserve of $2.6 million in the first quarter of 2005. This reserve had been established for a possible robbery loss that did not materialize. This reversal added $1.7 million to net income after taxes for the period. Without this extraordinary item, the net income for the first six months ending June 30, 2005 would have been $33.5 million. Net earnings of $37.2 million for the first half of 2006 would represent an increase of $3.6 million, or 10.86%, when compared to the $33.5 million for the same period in 2005.
Net income for the six months ending June 30, 2006 produced a return on beginning equity of 21.85%, a return on average equity of 21.20% and a return on average assets of 1.35%. The efficiency ratio for the six-month period was 46.95%, and operating expenses as a percentage of average assets was 1.74%.
Net Interest Income and Net Interest Margin
Net interest income totaled $42.3 million for the second quarter of 2006. This represented an increase of $377,000, or 0.90%, over net interest income of $41.9 million for the second quarter of 2005. This increase resulted from a $17.2 million increase in interest income, partially offset by a $15.9 million increase in interest expense and a $900,000 increase in the provision for credit losses. Net interest income before the provision for credit losses increased $1.3 million, or 3.05%, in the second quarter of 2006. The increases in interest income were primarily due to the growth in average earning assets and an increase in interest rates. The increases in interest expense were due to the increases in deposits and borrowed funds and the increase in interest rates on these funding instruments.
The net interest margin (tax equivalent) declined from 3.92% for the second quarter of 2005 to 3.47% for the second quarter of 2006. Total average earning asset yields have increased from 5.52% for the second quarter of 2005 to 6.03% for the second quarter of 2006. The cost of funds has increased from 2.33% for the second quarter of 2005 to 3.47%, for the second quarter of 2006. The higher increase in cost of funds is due to the short-term liability sensitivity of the Company. This decline in net interest margin has been mitigated by the strong growth in the balance sheet. The Company has approximately $1.37 billion, or 38.05%, of its deposits in interest free demand deposits.
Net interest income totaled $85.8 million for the six months ending June 30, 2006. This represents an increase of $3.3 million, or 4.03%, over the net interest income of $82.5 million for the same period in 2005. This increase resulted from a $33.6 million increase in interest income, which was partially offset by a $29.2 million increase in interest expense and a $1.2 million increase in the provision for credit losses. Net interest income before the provision for credit losses increased $4.5 million, or 5.43% for the first six months of 2006. The increases in interest income were primarily due to the growth in average earning assets and an increase in interest rates. The increases in interest expense were due to the increases in interest rates on deposits and borrowed funds.
The net interest margin (tax equivalent) decreased from 3.94% for the first six months of 2005 to 3.55% for the first six months of 2006. Total average earning asset yields have increased from 5.45% for the first six months of 2005 to 5.94% for the first six months of 2006. The cost of funds has increased from 2.23% for the first six months of 2005 to 3.29% for the first six months of 2006.
The credit quality of the loan portfolio continues to be strong. The allowance for credit losses increased from $24.1 million as of June 30, 2005 to $25.6 million as of June 30, 2006. During the first six months of 2006, the Company experienced net recoveries of $1.3 million and made a provision for credit losses of $1.2 million. During the first six months of 2005, the Company had net recoveries of $878,000 and $756,000 was added to the allowance from the acquisition of Granite State Bank. The allowance for credit losses is 0.90% of the total loans and leases outstanding. Although the allowance for credit losses is justified by the strong credit quality of the loan portfolio, it is relatively low when compared with peer banks. We believe that making appropriate levels of provisions to compensate for the growth of the loan portfolio is justified.
Balance Sheet
The Company reported total assets of $5.95 billion at June 30, 2006. This represented an increase of $1.14 billion, or 23.70%, over total assets of $4.81 billion on June 30, 2005. Earning assets totaling $5.56 billion were up $1.07 billion, or 23.84%, when compared with earning assets of $4.49 billion as of June 30, 2005. Deposits of $3.59 billion grew $600.3 million, or 20.06%, from $2.99 billion for the same period of the prior year. Gross loans and leases of $2.84 billion on June 30, 2006 rose $543.0 million, or 23.65%, from $2.30 billion on June 30, 2005.
Total assets of $5.95 billion as of June 30, 2006 reflect an increase of $529.4 million, or 9.76%, over total assets of $5.42 billion on December 31, 2005. Earning assets of $5.56 billion were up $480.0 million, or 9.44%, over the total earning assets of $5.08 billion on December 31, 2005. Deposits of $3.59 billion on June 30, 2006 grew $168.8 million, or 4.93%, from $3.42 billion as of December 31, 2005. Gross loans and leases of $2.84 billion increased $175.3 million, or 6.58%, from $2.66 billion on December 31, 2005. Total equity of $338.3 million on June 30, 2006 was down by $4.6 million, or 1.35%, from $342.9 million as of December 31, 2005. This decline was the result of a $28.9 million increase in the unrealized loss in the investment portfolio.
Investment Securities
Investment securities totaled $2.68 billion as of June 30, 2006. This represents an increase of $520.5 million, or 24.15%, when compared with the $2.15 billion in securities as of June 30, 2005. It represents an increase of $305.3 million, or 12.88%, when compared with $2.37 billion in investment securities as of December 31, 2005.
In June 2006, the Company purchased $250.0 million in mortgage-backed securities funded by a repurchase agreement with a double cap. This was done to protect against increased interest rates while providing a potential benefit in the event rates decline. The life of the repurchase agreement is two years.
Financial Advisory Services
The Financial Advisory Services Group has over $2.9 billion in assets under administration. They provide trust, investment and brokerage related services, as well as financial, estate and business succession planning.
Loan and Lease Quality
CVB Financial Corp reported $885,000 in non-performing assets as of June 30, 2006. There were no non-performing assets as of December 31, 2005. The allowance for credit losses was $25.6 million as of June 30, 2006. This represents 0.90% of gross loans and leases. It compares with an allowance for credit losses of $23.2 million, or 0.87% of gross loans and leases on December 31, 2005. The increase was primarily due to a provision for credit losses of $1.2 million and recoveries of $1.3 million, offset by loan charge-offs of $64,000 during the first six months of 2006.
Other Items in 2006
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 33 cities with 39 business financial centers in the Inland Empire, Los Angeles County, Orange County and the Central Valley areas of California. Its leasing division, Golden West Financial Services, provides vehicle leasing, equipment leasing and real estate loan services.
On June 2, 2006, the Company announced the appointment of Christopher D. Myers as President and Chief Executive Officer of CVB Financial Corp. and its wholly owned subsidiary, Citizens Business Bank. The appointment will become effective August 1, 2006. Myers will also join the Board of Directors of both CVB Financial Corp. and Citizens Business Bank at that time.
During the second quarter of 2006, the two Arcadia business financial centers were consolidated and moved into a new location within the city of Arcadia, California. The new address is 101 West Huntington Drive, Arcadia, California 91007.
For the fourth consecutive year, CVB Financial Corp. will receive the KBW Honor Roll award at the Annual Community Bank Investor Conference hosted by Keefe, Bruyette & Woods, Inc. in New York on August 1-2, 2006. The Company was also recognized as a SmAll-Star by Sandler O’Neill, and named on the FPK Honor Roll by Fox-Pitt, Kelton.
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 contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from the projected. In addition, these forward-looking statements relate to the Company’s current expectations regarding future operating results. Such issues and uncertainties include impact of changes in interest rates, a decline in economic conditions and increased competition among financial services providers. For a discussion of other 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, 2005, and particularly the discussion on risk factors within that document. The Company does not undertake any, 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.
_________________
| CVB FINANCIAL CORP. CONSOLIDATED BALANCE SHEET (unaudited) dollars in thousands | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30,
|
December 31,
| ||||||||||
| 2006
|
2005
|
2005
| |||||||||
| Assets: | |||||||||||
| Investment Securities available-for-sale | $ | 2,675,165 | $ | 2,143,528 | $ | 2,369,892 | |||||
| Interest-bearing balances due from depository institutions | 99 | 11,281 | 1,883 | ||||||||
| Investment in stock of Federal Home Loan Bank (FHLB) | 74,441 | 65,439 | 70,770 | ||||||||
| Loans and lease finance receivables | 2,839,145 | 2,296,135 | 2,663,863 | ||||||||
| Less allowance for credit losses | (25,620 | ) | (24,127 | ) | (23,204 | ) | |||||
| Net loans and lease finance receivables | 2,813,525 | 2,272,008 | 2,640,659 | ||||||||
| Total earning assets | 5,563,230 | 4,492,256 | 5,083,204 | ||||||||
| Cash and due from banks | 143,212 | 128,577 | 130,141 | ||||||||
| Premises and equipment, net | 43,862 | 39,596 | 40,020 | ||||||||
| Intangibles | 11,297 | 13,651 | 12,474 | ||||||||
| Goodwill | 31,531 | 28,735 | 32,357 | ||||||||
| Cash value of life insurance | 73,282 | 70,598 | 71,811 | ||||||||
| Other assets | 86,005 | 38,441 | 52,964 | ||||||||
| TOTAL | $ | 5,952,419 | $ | 4,811,854 | $ | 5,422,971 | |||||
| Liabilities and Stockholders' Equity | |||||||||||
| Liabilities: | |||||||||||
| Deposits: | |||||||||||
| Demand Deposits (noninterest-bearing) | $ | 1,367,015 | $ | 1,394,898 | 1,490,613 | ||||||
| Investment Checking | 299,393 | 248,726 | 298,067 | ||||||||
| Savings/MMDA | 910,083 | 838,657 | 852,189 | ||||||||
| Time Deposits | 1,016,362 | 510,255 | 783,177 | ||||||||
| Total Deposits | 3,592,853 | 2,992,536 | 3,424,046 | ||||||||
| Demand Note to U.S. Treasury | 4,462 | 5,079 | 6,433 | ||||||||
| Borrowings | 1,746,000 | 1,352,000 | 1,496,000 | ||||||||
| Junior Subordinated Debentures | 108,250 | 82,476 | 82,476 | ||||||||
| Other liabilities | 162,600 | 42,908 | 71,139 | ||||||||
| Total Liabilities | 5,614,165 | 4,474,999 | 5,080,094 | ||||||||
| Stockholders' equity: | |||||||||||
| Stockholders' equity | 380,564 | 333,552 | 356,263 | ||||||||
| Accumulated other comprehensive income | |||||||||||
| (loss), net of tax | (42,310) | 3,303 | (13,386) | ||||||||
| 338,254 | 336,855 | 342,877 | |||||||||
| TOTAL | $ | 5,952,419 | $ | 4,811,854 | $ | 5,422,971 | |||||
| CVB FINANCIAL CORP. CONSOLIDATED AVERAGE BALANCE SHEET (unaudited) dollars in thousands | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three months ended June 30, | Six months ended June 30, | |||||||||||||
| 2006
|
2005
|
2006
|
2005
| |||||||||||
| Assets: | ||||||||||||||
| Investment securities available-for-sale | $ | 2,417,985 | $ | 2,170,056 | $ | 2,404,090 | $ | 2,148,572 | ||||||
| Interest-bearing balances due from depository institutions | 2,745 | 14,262 | 3,701 | 9,962 | ||||||||||
| Investment in stock of Federal Home Loan Bank (FHLB) | 73,541 | 63,581 | 72,426 | 59,436 | ||||||||||
| Loans and lease finance receivables | 2,767,014 | 2,202,295 | 2,710,070 | 2,151,089 | ||||||||||
| Less allowance for credit losses | (24,424 | ) | (24,024 | ) | (23,865 | ) | (23,592 | ) | ||||||
| Net loans and lease finance receivables | 2,742,590 | 2,178,271 | 2,686,205 | 2,127,497 | ||||||||||
| Total earning assets | 5,236,861 | 4,426,170 | 5,166,422 | 4,345,467 | ||||||||||
| Cash and due from banks | 125,323 | 124,058 | 127,045 | 121,051 | ||||||||||
| Premises and equipment, net | 43,019 | 38,140 | 41,844 | 36,276 | ||||||||||
| Intangibles | 11,527 | 14,335 | 11,820 | 10,220 | ||||||||||
| Goodwill | 31,531 | 28,755 | 31,673 | 24,244 | ||||||||||
| Cash value of life insurance | 72,871 | 70,536 | 72,456 | 69,779 | ||||||||||
| Other assets | 95,101 | 81,338 | 90,825 | 61,339 | ||||||||||
| TOTAL | $ | 5,616,233 | $ | 4,783,332 | $ | 5,542,085 | $ | 4,668,376 | ||||||
| Liabilities and Stockholders' Equity | ||||||||||||||
| Liabilities: | ||||||||||||||
| Deposits: | ||||||||||||||
| Noninterest-bearing | $ | 1,343,664 | $ | 1,375,603 | $ | 1,365,198 | $ | 1,356,372 | ||||||
| Interest-bearing | 2,155,113 | 1,608,114 | 2,108,302 | 1,599,649 | ||||||||||
| Total Deposits | 3,498,777 | 2,983,717 | 3,473,500 | 2,956,021 | ||||||||||
| Other borrowings | 1,611,443 | 1,344,502 | 1,561,480 | 1,271,302 | ||||||||||
| Junior Subordinated Debentures | 108,250 | 82,476 | 103,978 | 82,476 | ||||||||||
| Other liabilities | 46,109 | 43,565 | 49,625 | 29,828 | ||||||||||
| Total Liabilities | 5,264,579 | 4,454,260 | 5,188,583 | 4,339,627 | ||||||||||
| Stockholders' equity: | ||||||||||||||
| Stockholders' equity | 380,391 | 339,071 | 374,690 | 329,460 | ||||||||||
| Accumulated other comprehensive income | ||||||||||||||
| (loss), net of tax | (28,737 | ) | (9,999 | ) | (21,188 | ) | (711 | ) | ||||||
| 351,654 | 329,072 | 353,502 | 328,749 | |||||||||||
| TOTAL | $ | 5,616,233 | $ | 4,783,332 | $ | 5,542,085 | $ | 4,668,376 | ||||||
|
CVB FINANCIAL CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (unaudited) dollar amounts in thousands, except per share | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the Three Months
Ended June 30, |
For the Six Months Ended June 30, | |||||||||||||
| 2006
|
2005
|
2006
|
2005
| |||||||||||
| Interest Income: | ||||||||||||||
| Loans, including fees | $ | 47,913 | $ | 35,267 | $ | 92,205 | $ | 67,647 | ||||||
| Investment securities: | ||||||||||||||
| Taxable | 21,163 | 18,897 | 41,900 | 37,600 | ||||||||||
| Tax-advantaged | 6,807 | 4,798 | 13,052 | 8,885 | ||||||||||
| Total investment income | 27,970 | 23,695 | 54,952 | 46,485 | ||||||||||
| Dividends from FHLB Stock | 990 | 663 | 1,790 | 1,138 | ||||||||||
| Federal funds sold | -- | (2 | ) | 32 | 2 | |||||||||
| Interest-bearing CDs with other institutions | 28 | 99 | 54 | 133 | ||||||||||
| Total interest income | 76,901 | 59,722 | 149,033 | 115,405 | ||||||||||
| Interest Expense: | ||||||||||||||
| Deposits | 16,294 | 6,248 | 29,495 | 11,309 | ||||||||||
| Borrowings and junior subordinated debentures | 17,446 | 11,590 | 32,552 | 21,588 | ||||||||||
| Total interest expense | 33,740 | 17,838 | 62,047 | 32,897 | ||||||||||
| Net interest income before provision for credit losses | 43,161 | 41,884 | 86,986 | 82,508 | ||||||||||
| Provision for credit losses | 900 | -- | 1,150 | -- | ||||||||||
| Net interest income after | ||||||||||||||
| provision for credit losses | 42,261 | 41,884 | 85,836 | 82,508 | ||||||||||
| Other Operating Income: | ||||||||||||||
| Service charges on deposit accounts | 3,288 | 3,251 | 6,579 | 6,293 | ||||||||||
| Financial Advisory Services | 1,815 | 1,509 | 3,660 | 3,187 | ||||||||||
| Gain/(Loss) on sale of investment securities | 33 | (46 | ) | 33 | (46 | ) | ||||||||
| Other | 2,955 | 2,578 | 5,548 | 4,937 | ||||||||||
| Total other operating income | 8,091 | 7,292 | 15,820 | 14,371 | ||||||||||
| Other operating expenses: | ||||||||||||||
| Salaries and employee benefits | 12,771 | 12,789 | 25,491 | 25,622 | ||||||||||
| Occupancy | 2,075 | 1,959 | 4,104 | 3,957 | ||||||||||
| Equipment | 1,756 | 2,112 | 3,501 | 3,856 | ||||||||||
| Professional services | 1,485 | 1,195 | 2,758 | 2,220 | ||||||||||
| Amortization of intangible assets | 589 | 589 | 1,177 | 885 | ||||||||||
| Other | 5,583 | 4,418 | 10,698 | 6,906 | ||||||||||
| Total other operating expenses | 24,259 | 23,062 | 47,729 | 43,446 | ||||||||||
| Earnings before income taxes | 26,093 | 26,114 | 53,927 | 53,433 | ||||||||||
| Income taxes | 7,176 | 8,636 | 16,770 | 18,254 | ||||||||||
| Net earnings | $ | 18,917 | $ | 17,478 | $ | 37,157 | $ | 35,179 | ||||||
Basic earnings per common share | $ | 0.25 | $ | 0.23 | $ | 0.49 | $ | 0.46 | ||||||
| Diluted earnings per common share | $ | 0.25 | $ | 0.23 | $ | 0.48 | $ | 0.45 | ||||||
| Cash dividends per common share | $ | 0.09 | $ | 0.11 | $ | 0.18 | $ | 0.22 | ||||||
All per share information has been retroactively adjusted to reflect the 5 for 4 stock split declared on December 21, 2005.
|
CVB FINANCIAL CORP. AND SUBSIDIARIES SELECTED FINANCIAL HIGHLIGHTS (unaudited) | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Three Months Ended June 30, |
Six Months Ended June 30, | |||||||||||||
| 2006
|
2005
|
2006
|
2005
| |||||||||||
| Interest income - (Tax Effective)(te) | $ | 79,111 | $ | 61,258 | $ | 153,263 | $ | 118,258 | ||||||
| Interest Expense | 33,740 | 17,838 | 62,047 | 32,897 | ||||||||||
| Net Interest income - (te) | $ | 45,371 | $ | 43,420 | $ | 91,216 | $ | 85,361 | ||||||
Return on average assets | 1.35 | % | 1.47 | % | 1.35 | % | 1.52 | % | ||||||
| Return on average equity | 21.58 | % | 21.30 | % | 21.20 | % | 21.58 | % | ||||||
| Efficiency ratio | 48.18 | % | 46.90 | % | 46.95 | % | 44.85 | % | ||||||
| Net interest margin (te) | 3.47 | % | 3.92 | % | 3.55 | % | 3.94 | % | ||||||
Weighted average shares outstanding |
||||||||||||||
| Basic | 76,493,394 | 76,686,751 | 76,476,932 | 76,554,033 | ||||||||||
| Diluted | 77,184,827 | 77,487,431 | 77,175,954 | 77,454,080 | ||||||||||
| Dividends declared | $ | 6,885 | $ | 6,716 | $ | 13,768 | $ | 14,356 | ||||||
| Dividend payout ratio | 36.39 | % | 38.42 | % | 37.05 | % | 40.81 | % | ||||||
Number of shares outstanding-EOP |
76,479,277 | 77,083,741 | ||||||||||||
| Book value per share | $ | 4.42 | $ | 4.37 | ||||||||||
June 30, | ||||||||||||||
| 2006
|
2005
| |||||||||||||
| Non-performing Assets (dollar amount in thousands): | ||||||||||||||
| Non-accrual loans | $ | 885 | $ | 0 | ||||||||||
| Loans past due 90 days or more | ||||||||||||||
| and still accruing interest | -- | -- | ||||||||||||
| Restructured loans | -- | -- | ||||||||||||
| Other real estate owned (OREO), net | -- | -- | ||||||||||||
| Total non-performing assets | $ | 885 | $ | 0 | ||||||||||
| Percentage of non-performing assets | ||||||||||||||
| to total loans outstanding and OREO | 0.03 | % | 0.00 | % | ||||||||||
| Percentage of non-performing | ||||||||||||||
| assets to total assets | 0.01 | % | 0.00 | % | ||||||||||
| Non-performing assets to | ||||||||||||||
| allowance for loan losses | 3.45 | % | 0.00 | % | ||||||||||
Net Charge-off (Recovered) to Average loans |
(0.05 | %) | (0.07 | %) | ||||||||||
Allowance for Credit Losses: | ||||||||||||||
| Beginning Balance | $ | 23,204 | $ | 22,494 | ||||||||||
| Total Loans Charged-Off | (64 | ) | (133 | ) | ||||||||||
| Total Loans Recovered | 1,330 | 1,010 | ||||||||||||
| Acquisition of Granite State Bank | 0 | 756 | ||||||||||||
| Net Loans Recovery (Charged-Off) | 1,266 | 1,633 | ||||||||||||
| Provision Charged to Operating Expense | 1,150 | -- | ||||||||||||
| Allowance for Credit Losses at End of period | $ | 25,620 | $ | 24,127 | ||||||||||
|
CVB FINANCIAL CORP. AND SUBSIDIARIES SELECTED FINANCIAL HIGHLIGHTS (in thousands, except per share data (unaudited) | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2006
|
2005
|
2004
| ||||||||||||||||||
| Quarter End | High
|
Low
|
High
|
Low
|
High
|
Low
| ||||||||||||||
| March 31, | $ | 17.16 | $ | 16.18 | $ | 17.04 | $ | 14.08 | $ | 13.63 | $ | 12.10 | ||||||||
| June 30, | $ | 17.15 | $ | 14.58 | $ | 16.10 | $ | 13.60 | $ | 14.05 | $ | 12.58 | ||||||||
| September 30, | $ | 17.52 | $ | 14.43 | $ | 14.96 | $ | 12.93 | ||||||||||||
| December 31, | $ | 16.72 | $ | 13.90 | $ | 17.87 | $ | 14.24 | ||||||||||||
|
Quarterly Consolidated Statements of Income Earnings | ||||||||||||||||||||
| 2Q 2006 |
1Q 2006 |
4Q 2005 |
3Q 2005 |
2Q 2005 | ||||||||||||||||
| Interest income | ||||||||||||||||||||
| Loans, including fees | $ | 47,913 | $ | 44,292 | $ | 42,432 | $ | 38,341 | $ | 35,267 | ||||||||||
| Investment securities and federal funds sold | 28,988 | 27,840 | 26,039 | 24,732 | 24,455 | |||||||||||||||
| 76,901 | 72,132 | 68,471 | 63,073 | 59,722 | ||||||||||||||||
| Interest expense | ||||||||||||||||||||
| Deposits | 16,294 | 13,201 | 10,060 | 7,539 | 6,248 | |||||||||||||||
| Other borrowings | 17,446 | 15,106 | 13,991 | 12,950 | 11,590 | |||||||||||||||
| 33,740 | 28,307 | 24,051 | 20,489 | 17,838 | ||||||||||||||||
| Net interest income before | ||||||||||||||||||||
| provision for credit losses | 43,161 | 43,825 | 44,420 | 42,584 | 41,884 | |||||||||||||||
| Provision for credit losses | 900 | 250 | -- | -- | -- | |||||||||||||||
| Net interest income after | ||||||||||||||||||||
| provision for credit losses | 42,261 | 43,575 | 44,420 | 42,584 | 41,884 | |||||||||||||||
| Non-interest income | 8,091 | 7,729 | 5,273 | 7,861 | 7,292 | |||||||||||||||
| Non-interest expenses | 24,259 | 23,470 | 23,926 | 22,679 | 23,062 | |||||||||||||||
| Earnings before income taxes | 26,093 | 27,834 | 25,767 | 27,766 | 26,114 | |||||||||||||||
| Income taxes | 7,176 | 9,594 | 8,593 | 9,499 | 8,636 | |||||||||||||||
| Net earnings | $ | 18,917 | $ | 18,240 | $ | 17,174 | $ | 18,267 | $ | 17,478 | ||||||||||
| Basic earning per common share | $ | 0.25 | $ | 0.24 | $ | 0.22 | $ | 0.24 | $ | 0.23 | ||||||||||
| Diluted earnings per common share | $ | 0.25 | $ | 0.24 | $ | 0.22 | $ | 0.23 | $ | 0.23 | ||||||||||
| Cash dividends per common share | $ | 0.09 | $ | 0.09 | $ | 0.09 | $ | 0.11 | $ | 0.11 | ||||||||||
| Dividends Declared | $ | 6,885 | $ | 6,883 | $ | 6,877 | $ | 6,722 | $ | 6,716 | ||||||||||
Financial Measures 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 settlement of robbery loss in conformity with GAAP.
| Net Earnings Reconciliation (non-GAAP disclosure): |
Three months ended June 30, |
Six months ended June 30, | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2006
|
2005
|
2006
|
2005
| |||||||||||
| Net earnings without the settlement of robbery loss | $ | 18,917 | $ | 17,478 | $ | 37,157 | $ | 33,467 | ||||||
| Settlement of robbery loss, net of tax | -- | -- | -- | 1,712 | ||||||||||
| Reported net earnings | $ | 18,917 | $ | 17,478 | $ | 37,157 | $ | 35,179 | ||||||
| Settlement of robbery loss | $ | 0 | $ | 0 | $ | 0 | $ | 2,600 | ||||||
| Tax effect | -- | -- | -- | (888 | ) | |||||||||
| Net of taxes | $ | 0 | $ | 0 | $ | 0 | $ | 1,712 | ||||||
We have presented net earnings without the settlement of robbery loss to show shareholders the earnings from operations unaffected by the impact of these items. We believe this presentation allows the reader to more easily assess the results of the Company's operations and business.