UNITED STATES
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

CVB FINANCIAL CORP.

(Exact name of registrant as specified in its charter)

California		0-10140		95-3629339
(State or other jurisdiction of		(Commission file number)		(I.R.S. employer
incorporation or organization)				identification number)

701 North Haven Avenue, Ontario, California		91764
(Address of principal executive offices)		(Zip Code)

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.):

o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR230.425)
o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR240.14a-12)
o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR240.14d-2(b))
o		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 15, 2009, CVB Financial Corp. issued a press release setting forth its second quarter ending June 30, 2009 earnings. A copy of this press release is attached hereto as Exhibit 99.1 and is being furnished pursuant to this Item 2.02.

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.

Exhibit Index

99.1		Press Release, dated July 15, 2009

Exhibit 99.1

Press Release
For Immediate Release

Contact:		Christopher D. Myers
		President and CEO
		(909) 980-4030

CVB Financial Corp. Reports Second Quarter 2009 Financial Results

	•		Quarterly Net Income of $15.9 million
	•		Diluted Earnings per Common Share $0.17
	•		Deposits and customer repos grew $795.4 million over June 30, 2008
	•		Allowance for credit losses 2.07% of total loans & leases
	•		Non-performing assets plus OREO declined by $1.4 million or 2.5% from March 31, 2009

Ontario, CA, July 15, 2009-CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business Bank (“the Company”), announced results for the second quarter of 2009. The Company reported increased earnings for the second quarter of 2009 compared to the first quarter of 2009. Net income of $15.9 million, increased by $2.7 million, or 20.45%, compared to net income of $13.2 million for the first quarter of 2009. Diluted earnings per common share of $0.17 for the second quarter of 2009, increased by $0.04 or 30.77%, from diluted earnings per common share of $0.13 for the first quarter of 2009.

“We are very pleased with our results for the second quarter of 2009,” said Chris Myers, President & CEO. “Our net income increased 20.45% sequentially, our deposit growth and customer repos increased $795.4 million year-over year, and our overall credit quality remained solid. Given the difficulties U.S. banks continue to face, we remain confident that we are well-positioned to continue our strong operating performance during these tough economic times.”

Net income of $15.9 million represents a decrease of $1.3 million, or 7.53%, when compared with net earnings of $17.2 million for the second quarter of 2008. Diluted earnings per common share were $0.17 for the second quarter of 2009. This was down $0.04, or 18.91%, from diluted earnings per common share of $0.21 for the same period last year. Of the $0.04 decrease, $0.02 is due to the dividends and amortization of the discount on our preferred stock.

Net income for the second quarter of 2009 produced a return on beginning common equity of 12.61%, a return on average common equity of 12.36% and a return on average assets of 0.99%. Return on beginning equity was 10.16% and return on average equity was 9.99%. The efficiency ratio for the second quarter was 61.29%; excluding the provision for credit losses, the gain on sale of securities and the one-time FDIC special assessment, the efficiency ratio was 49.0%. Operating expenses as a percentage of average assets were 2.05%. Our expenses were impacted by a $3.0 million accrual for the FDIC’s special assessment. This assessment was levied on all banking institutions.

Net income for the six months ending June 30, 2009 was $29.0 million. This represents a decrease of $4.3 million, or 12.92%, when compared with net income of $33.3 million for the same period of 2008. Diluted earnings per share for the six months ending June 30, 2009 were $0.30, a decrease of $0.10, or 24.66%, from diluted earnings per share of $0.40 for the same period last year. Of the $0.10 decrease, $0.05 is due to the dividends and amortization of the discount on our preferred stock. The net income for the six months of 2009 includes a provision of $42.0 million for credit losses and a $21.5 million gain on sale of investment securities, as compared to the provision for credit losses of $4.7 million and no gain on sale of securities for the first six months of 2008. Excluding the provision for credit losses, gain on sale of investment securities and the one-time FDIC special assessment, net income would have been $42.6 million.

Net income for the six months ending June 30, 2009 produced a return on beginning common equity of 11.86%, a return on average common equity of 11.51% and a return on average assets of 0.90%. Return on beginning equity was 9.52% and return on average equity was 9.29%. The efficiency ratio for the six-month period was 62.23%; excluding the provision for credit losses, the gain on sale of securities, and the one-time FDIC special assessment, the efficiency ratio was 49.54%. Operating expenses as a percentage of average assets was 1.99%.

The Company made provisions for credit losses totaling $20.0 million during the second quarter ending June 30, 2009. For the six months ending June 30, 2009, provisions for credit losses totaled $42.0 million. This compares with provisions of $3.0 million for the second quarter of 2008 and $4.7 million for the six months ending June 30, 2008. The Company’s non-performing assets increased from $13.5 million as of June 30, 2008 to $55.3 million as of June 30, 2009. This represents 0.21% of total assets as of June 30, 2008 and 0.86% of total assets as of June 30, 2009.

Net Interest Income and Net Interest Margin

Net interest income, before provision for credit losses, totaled $54.1 million for the second quarter of 2009. This represents an increase of $5.6 million, or 11.58%, over net interest income of $48.5 million for the same period in 2008. The increase resulted from a $12.8 million decrease in interest expense which overshadowed a $7.2 million decrease in interest income. The decrease in interest income was primarily due to the decrease in both interest rates and average earning assets. The decrease in interest expense was due to the decrease in the interest rates paid on deposits and borrowed funds, coupled with a

decrease in average borrowed funds, which was partially offset by the increase in average interest-bearing deposits.

Net interest margin (tax equivalent) increased from 3.43% for the second quarter of 2008 to 3.76% for the second quarter of 2009. Total average earning asset yields decreased from 5.69% for the second quarter of 2008 to 5.17% for the second quarter of 2009. The cost of funds decreased from 2.95% for the second quarter of 2008 to 1.98% for the second quarter of 2009. 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, before the provision for credit losses, totaled $109.4 million for the six months ending June 30, 2009. This was the highest net interest income in the history of the Company. This represents an increase of $16.8 million, or 18.11%, compared to the same period in 2008. The increase resulted from a $28.2 million decrease in interest expense which overshadowed an $11.5 million decrease in interest income.

The net interest margin (tax equivalent) increased from 3.34% for the first six months of 2008 to 3.75% for the first six months of 2009. Total average earning asset yields decreased from 5.80% for the first six months of 2008 to 5.22% for the first six months of 2009. Total cost of funds decreased from 3.20% for the first six months of 2008 to 2.03% for the first six months of 2009.

Assets

The Company reported total assets of $6.41 billion at June 30, 2009. This represented a decrease of $38.9 million, or 0.60%, from total assets of $6.45 billion at June 30, 2008. Earning assets totaling $5.91 billion declined $155.7 million, or 2.57%, when compared with earning assets of $6.07 billion at June 30, 2008. The decrease is due to the decrease in total investments of $216.8 million, offset by an increase in loans, net of allowance for loan losses, of $61.1 million. Loans and leases totaled $3.61 billion at June 30, 2009. This represents an increase of $98.5 million, or 2.80%, when compared with loans and leases of $3.52 billion at June 30, 2008.

Total assets of $6.41 billion at June 30, 2009 decreased $234.8 million, or 3.53% from total assets of $6.65 billion at December 31, 2008. This was primarily due to the decrease in investment securities of $222.6 million. Total earning assets of $5.91 billion decreased $364.0 million, or 5.80%, from total earning assets of $6.28 billion at December 31, 2008. Loans and leases totaling $3.61 billion at June 30, 2009 decreased $122.1 million, or 3.27% from loans and leases of $3.74 billion at December 31, 2008.

Investment Securities

Investment securities totaled $2.28 billion at June 30, 2009. This represents a decrease of $220.3 million, or 8.82%, when compared with $2.50 billion in investment securities at June 30, 2008. It also represents a decrease of $222.6 million, or 8.91%, when compared with $2.50 billion in investment securities at December 31, 2008. During the first six months of 2009, we sold certain securities with relatively short maturities and recognized a gain on sale of securities of $21.5 million.

Our investment portfolio continues to perform well. We have no preferred stock and no 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 mortgage-backed issues, approximately $40 million, are also performing well. Ninety-six percent of our $649.9 million municipal bond portfolio contains securities which have an underlying rating of investment grade. Of the $657.5 million in municipal bond securities, $41.4 million, or 6.3%, are located within the state of California. All municipal bond securities are fully performing.

Deposits

Total deposits and customer repos were $4.41 billion at June 30, 2009. This represents an increase of $795.4 million, or 22.01%, when compared with total deposits and customer repos of $3.61 billion at June 30, 2008. Total deposits and customer repos of $4.41 billion at June 30, 2009 increased by $543.4 million, or 14.06%, when compared to total deposits and customer repos of $3.87 billion at December 31, 2008. “Last year we implemented our deposit gathering initiatives through the creation of our Specialty Banking Group and our Commercial Banking Centers,” said Chris Myers. “The growth in deposits and customer repos is a reflection of the success of those initiatives.”

Borrowings

Borrowings decreased by $779.0 million, or 39.09%, from December 31, 2008. As a result of the increase in deposits and customer repurchases of $543.4 million and the net decrease of $222.6 million in securities, it was possible for us to reduce our reliance on borrowed funds. The replacement of high cost borrowings with low cost deposits helped to improve our margin during the first six months of 2009. “One of our goals has been to decrease our reliance on borrowed funds; we have made significant progress” commented Mr. Myers.

Asset Quality

During the second quarter of 2009 non-accrual loans increased $3.2 million from the first quarter, now totaling $51.3 million. Net charge-offs were $11.0 million in the second quarter of 2009 compared to $10.2 million in the first quarter of 2009. OREO decreased to $4.0 million at June 30, 2009, from $8.7 million at March 31, 2009. This represents a decrease of $4.7 million due to the sale of $6.1 million in OREO properties, offset by the addition of $1.4 million in new OREO properties.

The overall credit quality of the loan portfolio is sound. Our allowance for credit losses increased from $37.3 million as of June 30, 2008 and $54.0 million as of December 31, 2008 to $74.8 million as of June 30, 2009. The increase was primarily due to provisions for credit losses of $17.9 million during the fourth quarter of 2008 and a provision for credit losses of $42.0 million during the first six months of 2009. During the first six months of 2009, we had loan charge-offs totaling $21.9 million and recoveries on previously charged-off loans of $645,000. This resulted in net charge-offs of $21.2 million. By comparison, during the first six months of 2008, the Company had net charge-offs of $439,000 and a $4.7 million contribution to the provision for credit losses.

The allowance for credit losses was 2.07% and 1.06% of total loans and leases outstanding as of June 30, 2009 and 2008, respectively. “We continue to make greater provisions for credit losses in order to build our reserves. One of our key internal measurements is the ratio of our loan loss allowance to our non-performing loans. We are pleased to report that this ratio improved from 137% at March 31, 2009 to 146% at June 30, 2009. In looking forward, our goal is to be proactive and fiscally prepared for any further deterioration in economic conditions,” said Chris Myers.

We had $51.3 million in non-performing loans at June 30, 2009 or 1.42% of total loans. This compares to $48.0 million in non-performing loans at March 31, 2009, $17.7 million at December 31, 2008 and $12.3 million at June 30, 2008. Non-performing loans consist of $17.4 million in residential construction and land loans, $21.3 million in commercial construction loans, $4.6 million in single-family mortgage loans, $7.0 million in commercial real estate loans, $0.9 million in other commercial loans and $0.1 million in consumer loans. As a follow-up to our 1^st quarter earnings release, the Bank continues to have only one borrowing relationship with over $50 million in total loan commitments. The subject relationship consists of eight loans aggregating $85.2 million. We have not advanced any new monies to this borrower since August 2008. All of these loans are backed by the principal owner, paid current and performing as agreed.

A misconception is that all of our loans are in the Inland Empire, one of the hardest hit areas of the United States during this recession. However, of our total loan portfolio, approximately 22% is based in the Inland Empire and 33% is based in L.A. County. Please see attached schedules for a geographic breakdown of our loan portfolio.

At June 30, 2009, we had loans delinquent 30 to 89 days of $7.3 million. This compares to delinquent loans of $13.9 million as of March 31, 2009, $5.2 million as of December, 31, 2008, and $1.0 million as of June 30, 2008. As a percentage of total loans, delinquencies, excluding non-accruals, were 0.20% at June 30, 2009, 0.38% at March 31, 2009, 0.14% at December 31, 2008 and 0.03% at June 30, 2008.

Our construction loan portfolio totaled $303.6 million as of June 30, 2009 down from $351.5 million as of December 31, 2008. This represents 8.4% of our total loans outstanding at June 30, 2009. Of the $303.6 million, $83.6 million is for residential construction and residential land loans. This represents 28% of the construction loans outstanding or 2.3% of our total loan portfolio. Of note, 33% of our total construction loan portfolio is based in the Inland Empire.

CitizensTrust

CitizensTrust has approximately $1.6 billion in assets under administration, including $750.4 million in assets under management, as of June 30, 2009. This compares with $2.1 billion in assets under administration, including $807.4 million in assets under management at June 30, 2008. CitizensTrust provides trust, investment and brokerage related services, as well as financial, estate and business succession planning. Income from CitizensTrust was $1.6 million in the current quarter, down $371,000 from $2.0 million for the second quarter of 2008.

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 39 cities with 42 business financial centers and 5 commercial banking centers in the Inland Empire, Los Angeles County, Orange County and the Central Valley areas of California.

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 (including the exhibits hereto) 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, local, regional, national and international economic conditions and events and the impact they may have on us and our customers; ability to attract deposits and other sources of liquidity; oversupply of inventory and continued deterioration in values of California real estate, both residential and commercial; a prolonged slowdown in construction activity; changes in the financial performance and/or condition of our borrowers; changes in the level of non-performing assets and charge-offs; ability to repurchase our securities issued to the U.S. Treasury pursuant to its Capital Purchase Program; the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, executive compensation and insurance) with which we and our subsidiaries must comply; changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; inflation, interest rate, securities market and monetary fluctuations; political instability; acts of war or terrorism, or natural disasters, such as earthquakes, or the effects of pandemic flu; the timely development and acceptance of new banking products and services and perceived overall value of these products and services by users; changes in consumer spending, borrowing and savings habits; technological changes; the ability to increase market share and control expenses; changes in the competitive environment among financial and bank holding companies and other financial service providers; continued volatility in the credit and equity markets and its effect on the general economy; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; changes in our organization, management, compensation and benefit plans; the costs and effects of legal and regulatory developments including the resolution of legal proceedings or regulatory or other governmental inquiries and the results of regulatory examinations or reviews; our

success at managing the risks involved in the foregoing items 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, 2008, 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

		June 30,								December 31,
		2009				2008				2008
Assets:
Cash and due from banks		$	221,242			$	110,966			$	95,297
Investment Securities available-for-sale			2,271,393				2,490,677				2,493,476
Investment Securities held-to-maturity			6,347				7,380				6,867
Federal funds sold and Interest-bearing balances due from depository institutions			1,785				475				285
Investment in stock of Federal Home Loan Bank (FHLB)			93,240				90,987				93,240
Loans and lease finance receivables			3,614,756				3,516,243				3,736,838
Less allowance for credit losses			(74,755	)			(37,310	)			(53,960	)
Net loans and lease finance receivables			3,540,001				3,478,933				3,682,878
Total earning assets			5,912,766				6,068,452				6,276,746
Premises and equipment, net			42,838				45,206				44,420
Intangibles			9,497				12,815				11,020
Goodwill			55,097				55,097				55,097
Cash value of life insurance			108,045				105,644				106,366
Other assets			65,412				55,666				60,705
TOTAL		$	6,414,897			$	6,453,846			$	6,649,651
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Demand Deposits (noninterest-bearing)		$	1,420,535			$	1,281,838			$	1,334,248
Investment Checking			410,107				346,916				324,907
Savings/MMDA			923,658				861,337				818,872
Time Deposits			1,228,920				723,542				1,030,129
Total Deposits			3,983,220				3,213,633				3,508,156
Demand Note to U.S. Treasury			8,995				77				5,373
Customer Repurchase Agreements			426,111				400,306				357,813
Repurchase Agreements			250,000				250,000				250,000
Borrowings			955,000				1,994,850				1,737,660
Junior Subordinated Debentures			115,055				115,055				115,055
Other liabilities			53,140				45,731				60,702
Total Liabilities			5,791,521				6,019,652				6,034,759
Stockholders’ equity:
Stockholders’ equity			598,902				439,912				586,161
Accumulated other comprehensive income (loss), net of tax			24,474				(5,718	)			28,731
			623,376				434,194				614,892
TOTAL		$	6,414,897			$	6,453,846			$	6,649,651

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

		Three months ended June 30,								Six months ended June 30,
		2009				2008				2009				2008
Assets:
Cash and due from banks		$	101,092			$	100,568			$	98,232			$	104,223
Investment securities available-for-sale			2,299,700				2,550,131				2,397,601				2,468,525
Investment securities held-to-maturity			6,432				7,463				6,561				6,790
Federal funds sold and Interest-bearing balances due from depository institutions			61,283				1,959				30,953				1,627
Investment in stock of Federal Home Loan Bank (FHLB)			93,240				89,043				93,240				86,881
Loans and lease finance receivables			3,654,189				3,438,189				3,667,152				3,410,981
Less allowance for credit losses			(75,390	)			(35,635	)			(67,898	)			(34,770	)
Net loans and lease finance receivables			3,578,799				3,402,554				3,599,254				3,376,211
Total earning assets			6,039,454				6,051,150				6,127,609				5,940,034
Premises and equipment, net			43,778				46,176				44,158				46,475
Intangibles			9,782				13,163				10,149				13,612
Goodwill			55,097				55,097				55,097				55,114
Cash value of life insurance			107,612				104,918				107,163				104,353
Other assets			84,947				75,019				82,604				72,491
TOTAL		$	6,441,762			$	6,446,091			$	6,525,012			$	6,336,302
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing		$	1,375,054			$	1,248,113			$	1,358,732			$	1,236,720
Interest-bearing			2,506,064				1,997,510				2,384,135				2,024,070
Total Deposits			3,881,118				3,245,623				3,742,867				3,260,790
Other borrowings			1,723,364				2,530,603				1,965,178				2,434,881
Junior Subordinated Debentures			115,055				115,055				115,055				115,055
Other liabilities			85,547				90,148				71,677				74,946
Total Liabilities			5,805,084				5,981,429				5,894,777				5,885,672
Stockholders’ equity:
Stockholders’ equity			601,788				442,203				598,373				437,233
Accumulated other comprehensive income (loss), net of tax			34,890				22,459				31,862				13,397
			636,678				464,662				630,235				450,630
TOTAL		$	6,441,762			$	6,446,091			$	6,525,012			$	6,336,302

CVB FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)
dollar amounts in thousands, except per share

		For the Three Months								For the Six Months
		Ended June 30,								Ended June 30,
		2009				2008				2009				2008
Interest Income:
Loans and leases, including fees		$	49,771			$	52,211			$	99,296			$	106,257
Investment securities:
Taxable			19,134				22,430				41,570				43,306
Tax-advantaged			6,815				7,111				13,811				14,299
Total investment income			25,949				29,541				55,381				57,605
Dividends from FHLB Stock			—				1,205				—				2,299
Federal funds sold & Interest-bearing CDs with other institutions			55				12				59				27
Total interest income			75,775				82,969				154,736				166,188
Interest Expense:
Deposits			6,439				8,537				13,029				20,816
Borrowings and junior subordinated debentures			15,241				25,949				32,321				52,760
Total interest expense			21,680				34,486				45,350				73,576
Net interest income before provision for credit losses			54,095				48,483				109,386				92,612
Provision for credit losses			20,000				3,000				42,000				4,700
Net interest income after provision for credit losses			34,095				45,483				67,386				87,912
Other Operating Income:
Service charges on deposit accounts			3,643				3,807				7,360				7,552
Trust and investment services			1,604				1,975				3,265				3,888
Gain on sale of investment securities			12,619				—				21,548				—
Other			1,843				2,920				3,893				5,403
Total other operating income			19,709				8,702				36,066				16,843
Other operating expenses:
Salaries and employee benefits			15,376				15,501				31,196				31,044
Occupancy			2,686				3,080				5,538				5,951
Equipment			1,735				2,019				3,332				3,668
Professional services			1,658				1,874				3,352				3,415
Amortization of intangible assets			734				898				1,523				1,796
Provision for unfunded commitments			450				1,000				1,350				1,250
OREO Expense			143				—				1,174				—
Other			10,197				6,006				16,911				11,653
Total other operating expenses			32,979				30,378				64,376				58,777
Earnings before income taxes			20,825				23,807				39,076				45,978
Income taxes			4,964				6,655				10,048				12,642
Net earnings		$	15,861			$	17,152			$	29,028			$	33,336
Basic earnings per common share		$	0.17			$	0.21			$	0.30			$	0.40
Diluted earnings per common share		$	0.17			$	0.21			$	0.30			$	0.40
Cash dividends per common share		$	0.085			$	0.085			$	0.170			$	0.170

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)

		Three months ended June 30,								Six months ended June 30,
		2009				2008				2009				2008
Interest income — (Tax-Effected) (te)		$	78,559			$	85,856			$	160,367			$	171,988
Interest Expense			21,680				34,486				45,350				73,576
Net Interest income — (te)		$	56,879			$	51,370			$	115,017			$	98,412
Return on average assets			0.99	%			1.07	%			0.90	%			1.06	%
Return on average equity			9.99	%			14.85	%			9.29	%			14.88	%
Efficiency ratio			61.29	%			56.06	%			62.23	%			56.11	%
Net interest margin (te)			3.76	%			3.43	%			3.75	%			3.34	%
Weighted average shares outstanding
Basic			83,222,011				83,105,378				83,198,635				83,128,353
Diluted			83,290,941				83,478,290				83,299,071				83,456,005
Dividends declared		$	7,079			$	7,058			$	14,162			$	14,151
Dividend payout ratio			44.63	%			41.15	%			48.79	%			42.45	%
Number of shares outstanding—EOP			83,326,511				83,221,358
Book value per share		$	6.01			$	5.22

		June 30,
		2009				2008
Non-performing Assets (dollar amount in thousands):
Non-accrual loans		$	51,265			$	12,337
Loans past due 90 days or more and still accruing interest			—				—
Other real estate owned (OREO), net			4,035				1,137
Total non-performing assets		$	55,300			$	13,474
Percentage of non-performing assets to total loans outstanding and OREO			1.52	%			0.38	%
Percentage of non-performing assets to total assets			0.86	%			0.21	%
Allowance for loan losses to non-performing assets			135.18	%			276.90	%
Net Charge-off to Average loans			0.58	%			0.01	%
Allowance for Credit Losses:
Beginning Balance		$	53,960			$	33,049
Total Loans Charged-Off			(21,850	)			(685	)
Total Loans Recovered			645				246
Net Loans Charged-off			(21,205	)			(439	)
Provision Charged to Operating Expense			42,000				4,700
Allowance for Credit Losses at End of period		$	74,755			$	37,310

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(in thousands, except per share data)
(unaudited)

Quarterly Common Stock Price

		2009								2008								2007
Quarter End		High				Low				High				Low				High				Low
March 31,		$	11.62			$	5.62			$	11.20			$	8.45			$	13.38			$	11.42
June 30,		$	7.72			$	5.75			$	12.10			$	9.44			$	12.40			$	10.63
September 30,										$	15.01			$	7.65			$	12.71			$	9.51
December 31,										$	13.89			$	9.29			$	11.97			$	9.98

Quarterly Consolidated Statements of Earnings

		2Q				1Q				4Q				3Q				2Q
		2009				2009				2008				2008				2008
Interest income
Loans, including fees		$	49,771			$	49,526			$	53,416			$	52,954			$	52,211
Investment securities and federal funds sold			26,004				29,436				29,407				30,553				30,758
			75,775				78,962				82,823				83,507				82,969
Interest expense
Deposits			6,439				6,590				7,569				7,417				8,537
Other borrowings			15,241				17,080				23,200				27,078				25,949
			21,680				23,670				30,769				34,495				34,486
Net interest income before provision for credit losses			54,095				55,292				52,054				49,012				48,483
Provision for credit losses			20,000				22,000				17,900				4,000				3,000
Net interest income after provision for credit losses			34,095				33,292				34,154				45,012				45,483
Non-interest income			19,709				16,357				9,242				8,373				8,702
Non-interest expenses			32,979				31,397				27,954				29,057				30,378
Earnings before income taxes			20,825				18,252				15,442				24,328				23,807
Income taxes			4,964				5,084				3,165				6,868				6,655
Net earnings		$	15,861			$	13,168			$	12,277			$	17,460			$	17,152
Basic earning per common share		$	0.17			$	0.13			$	0.14			$	0.21			$	0.21
Diluted earnings per common share		$	0.17			$	0.13			$	0.14			$	0.21			$	0.21
Cash dividends per common share		$	0.085			$	0.085			$	0.085			$	0.085			$	0.085
Dividends Declared		$	7,079			$	7,083			$	7,078			$	7,088			$	7,058

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(in thousands)
(unaudited)

Distribution of Loan Portfolio

		6/30/2009				3/31/2009				12/31/2008				9/30/2008				6/30/2008
Commercial and Industrial		$	372,162			$	355,591			$	370,829			$	356,973			$	424,515
Real Estate:
Construction			303,629				333,234				351,543				359,859				333,303
Commercial Real Estate			1,964,258				1,965,531				1,945,706				1,932,778				1,851,123
SFR Mortgage			306,225				328,145				333,931				341,389				351,120
Consumer			67,947				69,708				66,255				61,710				57,380
Municipal lease finance receivables			165,527				169,230				172,973				173,600				163,459
Auto and equipment leases			37,242				41,708				45,465				47,753				53,121
Dairy and Livestock			405,427				404,090				459,329				331,333				293,133
Gross Loans			3,622,417				3,667,237				3,746,031				3,605,395				3,527,154
Less:
Deferred net loan fees			(7,661	)			(8,378	)			(9,193	)			(10,058	)			(10,911	)
Allowance for credit losses			(74,755	)			(65,755	)			(53,960	)			(40,058	)			(37,310	)
Net Loans		$	3,540,001			$	3,593,104			$	3,682,878			$	3,555,279			$	3,478,933

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(in thousands)
(unaudited)

Non-Performing Assets & Delinquency Trends

		June 30,				March 31,				December 31,				September 30,				June 30,
		2009				2009				2008				2008				2008
Non-Performing Loans
Residential Construction and Land		$	17,348			$	20,943			$	7,524			$	8,020			$	9,802
Commercial Construction			21,270				22,102				—				—				—
Residential Mortgage			4,632				2,203				3,116				2,062				1,672
Commercial Real Estate			7,041				1,661				4,658				4,995				337
Commercial and Industrial			859				792				2,074				1,248				214
Consumer			115				336				312				312				312
Total		$	51,265			$	48,037			$	17,684			$	16,637			$	12,337
% of Total Loans			1.42	%			1.31	%			0.47	%			0.46	%			0.35	%
Past Due 30+ Days
Residential Construction and Land		$	—			$	—			$	—			$	—			$	—
Commercial Construction			—				—				—				2,500				—
Residential Mortgage			2,069				3,814				1,931				481				483
Commercial Real Estate			1,074				8,341				2,402				19				255
Commercial and Industrial			590				1,720				592				1,852				228
Dairy & Livestock			3,551				—				—				—				—
Consumer			8				62				231				55				—
Total		$	7,292			$	13,937			$	5,156			$	4,907			$	966
% of Total Loans			0.20	%			0.38	%			0.14	%			0.14	%			0.03	%
OREO
Residential Construction and Land		$	1,789			$	2,416			$	6,158			$	1,612			$	1,137
Commercial Real Estate			1,187				4,612				87				—				—
Commercial and Industrial			893				893				—				—				—
Residential Mortgage			—				745				320				315				—
Consumer			166				—				—				—				—
Total		$	4,035			$	8,666			$	6,565			$	1,927			$	1,137
Total Non-Performing, Past Due & OREO		$	62,592			$	70,640			$	29,405			$	23,471			$	14,440
% of Total Loans			1.73	%			1.93	%			0.78	%			0.65	%			0.41	%
Total Loans			3,622,417				3,667,237				3,746,031				3,605,395				3,527,154

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(in thousands)
(unaudited)

		June 30, 2009
		Total Loans
Total Loans by County		(amounts in thousands)
Los Angeles		$	1,186,400				32.8	%
Inland Empire			798,695				22.0	%
Central Valley			643,524				17.8	%
Orange			518,187				14.3	%
Other Areas			475,611				13.1	%
		$	3,622,417				100.0	%

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.

The following table reconciles the differences in net earnings excluding the provision for credit losses, the gain on sale of securities, and the one-time FDIC Special Assessment in conformity with GAAP.

Net Earnings Reconciliation (non-GAAP disclosure):

		June 30, 2009
		Three months				Six months
		ended				ended
		(Amounts in thousands)
Net earnings excluding the provision for credit losses, the gain on sale of securities, and the one-time FDIC Special Assessment		$	21,882			$	42,630
Provision for Credit Losses			(20,000	)			(42,000	)
Gain on Sale of Securities			12,619				21,548
One-time FDIC Special Assessment			(3,000	)			(3,000	)
Tax Effect			4,360				9,850
GAAP Net Earnings		$	15,861			$	29,028

We have presented net earnings excluding the provision for credit losses, the gain on sale of securities, and the one-time FDIC Special Assessment to show shareholders the earnings from operations was uneffected 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.

Ratios Reconciliation (non-GAAP disclosure):

     The following table reconciles the differences in ratios excluding the provision for credit losses, the gain on sale of securities, and the one-time FDIC Special Assessment in conformity with GAAP.

		Ratios Reconciliation												Ratios Reconciliation
		For the Three Months												For the Six Months
		Ended June 30,												Ended June 30,
		2009												2009
														Excluding				Provision for
		Excluding				Provision for								provision for				credit losses,
		provision for credit				credit losses,								credit losses, gain				gain on sale
		losses, gain on				gain on sale of								on sale of				of securities,
		sale of securities,				securities, and								securities, and				and FDIC
		and FDIC special				FDIC special				GAAP Net				FDIC special				special				GAAP Net
		assessment				assessment				Earnings				assessment				assessment				Earnings
		(amounts in thousands)												(amounts in thousands)
Other Operating Expense		$	29,979			$	3,000			$	32,979			$	61,376			$	3,000			$	64,376
Net Revenues		$	61,185			$	(7,381	)		$	53,804			$	123,904			$	(20,452	)		$	103,452
Net Earnings		$	21,882			$	(6,021	)		$	15,861			$	42,630			$	(13,602	)		$	29,028
Return on Beginning Equity			14.01	%							10.16	%			13.98	%							9.52	%
Return on Average Equity			13.79	%							9.99	%			13.64	%							9.29	%
Return on Average Assets			1.36	%							0.99	%			1.32	%							0.90	%
Efficiency Ratio			49.00	%							61.29	%			49.54	%							62.23	%

We have presented ratios excluding the provision for credit losses, the gain on sale of securities, and the one-time FDIC Special Assessment to show shareholders the earnings from operations was 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.