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

701 North Haven Avenue, Ontario, California (Address of principal executive offices)		91764 (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 October 21, 2009, CVB Financial Corp. issued a press release setting forth its third quarter ending September 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 October 21, 2009

EX-99.1

Press Release
For Immediate Release

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

CVB Financial Corp. Reports Record Results for Third Quarter 2009

	•		Quarterly Net Income of $19.3 million, highest in company history
	•		Diluted Earnings per Common Share $0.10 (reduced by $0.07 for TARP repayment)
	•		Deposits, including customer repos, grew $943.6 million over September 30, 2008
	•		Allowance for credit losses 2.43% of total loans & leases

Ontario, CA, October 21, 2009-CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business Bank (“the Company”), announced record results for the third quarter of 2009. The Company reported net income of $19.3 million for the third quarter of 2009. This represents the highest quarterly net income in the history of the Company.

Net income of $19.3 million reflects an increase of $1.8 million, or 10.66%, compared to net income of $17.5 million for the third quarter of 2008. Diluted earnings per common share were $0.10 for the third quarter of 2009, a decrease of $0.11 or 49.43%, from diluted earnings per common share of $0.21 for the third quarter of 2008. Due to the repayment of TARP preferred stock, current-quarter diluted earnings per common share reflected a one-time, non-cash reduction in net income applicable to common stockholders of $7.6 million, or $.07 per share.

“We are very pleased to report these outstanding results for the third quarter, particularly in these challenging times,” said Chris Myers, President & CEO. “Our net income increased 21.82% sequentially, our deposit growth (including customer repos) increased $943.6 million year-over year, or 26.53%, and our overall credit quality remains sound.”

Net income for the third quarter of 2009 produced a return on beginning common equity of 15.30%, a return on average common equity of 12.77% and a return on average assets of 1.17%. The efficiency ratio for the third quarter was 52.44%. Excluding the

provision for credit losses and the gain on sale of securities, the efficiency ratio was 47.37%. Operating expenses as a percentage of average assets were 1.81%.

Net income for the nine months ending September 30, 2009 was $48.4 million. This represents a decrease of $2.4 million, or 4.82%, when compared with net income of $50.8 million for the same period of 2008. Diluted earnings per common share for the nine months ending September 30, 2009 were $0.40, a decrease of $0.21, or 34.18%, from diluted earnings per common share of $0.61 for the same period last year. A substantial portion of the decrease is due to the dividends and amortization of the discount on our preferred stock which was repaid in the third quarter.

The net income for the nine months of 2009 includes a provision of $55.0 million for credit losses and a $28.4 million gain on sale of investment securities, as compared to the provision for credit losses of $8.7 million and no gain on sale of securities for the first nine months of 2008. Operating expenses increased $6.4 million for the nine months ending September 30, 2009 compared to the same period last year. This was primarily due to $6.1 million in charges for FDIC special assessments and increases in insurance premiums.

Net income for the nine months ending September 30, 2009 produced a return on beginning common equity of 13.10%, a return on average common equity of 11.99% and a return on average assets of 0.99%. The efficiency ratio for the nine-month period was 58.76%. Excluding the provision for credit losses, the gain on sale of securities, and the one-time FDIC special assessment, the efficiency ratio was 48.80%. Operating expenses as a percentage of average assets were 1.93%.

The Company made provisions for credit losses totaling $13.0 million during the third quarter ending September 30, 2009. For the nine months ending September 30, 2009, provisions for credit losses totaled $55.0 million. This compares with provisions of $4.0 million for the third quarter of 2008 and $8.7 million for the nine months ending September 30, 2008. The Company’s non-performing assets increased from $18.6 million as of September 30, 2008 to $59.2 million as of September 30, 2009. This represents 0.29% of total assets as of September 30, 2008 and 0.91% of total assets as of September 30, 2009. Past due loans (defined as 30-89 days past due as all loans over 90 days are on non-accrual) as a percentage of total loans were 0.19% at September 30, 2009, compared to 0.20% at June 30, 2009, and 0.38% at March 31, 2009.

Net Interest Income and Net Interest Margin

Net interest income, before provision for credit losses, totaled $54.8 million for the third quarter of 2009. This represents an increase of $5.8 million, or 11.82%, over net interest income of $49.0 million for the same period in 2008. The increase resulted from a $13.4 million decrease in interest expense, which overshadowed a $7.6 million decrease in interest income. The decrease in interest income was primarily due to the decrease in interest rates. 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 of $621.0 million, which was partially offset by the increase in average interest-bearing deposits.

Net interest margin (tax equivalent) increased from 3.43% for the third quarter of 2008 to 3.75% for the third quarter of 2009. Total average earning asset yields decreased from 5.65% for the third quarter of 2008 to 5.11% for the third quarter of 2009. The cost of funds decreased from 2.28% for the third quarter of 2008 to 1.43% for the third 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 $164.2 million for the nine months ending September 30, 2009. This represents an increase of $22.6 million, or 15.93%, compared to the same period in 2008. The increase resulted from a $41.6 million decrease in interest expense which overshadowed a $19.0 million decrease in interest income.

The net interest margin (tax equivalent) increased from 3.37% for the first nine months of 2008 to 3.75% for the first nine months of 2009. Total average earning asset yields decreased from 5.75% for the first nine months of 2008 to 5.18% for the first nine months of 2009. Total cost of funds decreased from 2.43% for the first nine months of 2008 to 1.51% for the first nine months of 2009.

Assets

The Company reported total assets of $6.55 billion at September 30, 2009. This represented an increase of $124.5 million, or 1.94%, over total assets of $6.42 billion at September 30, 2008. Earning assets totaling $6.05 billion increased $3.3 million, or 0.05%, when compared with earning assets of $6.04 billion at September 30, 2008. Total loans and leases remained flat at $3.60 billion at September 30, 2009 and 2008.

Total assets of $6.55 billion at September 30, 2009 decreased $103.4 million, or 1.55%, from total assets of $6.65 billion at December 31, 2008. This was due to the decrease in investment securities of $210.6 million partially offset by an increase in cash. Total earning assets of $6.05 billion decreased $230.8 million, or 3.68%, from total earning assets of $6.28 billion at December 31, 2008. Loans and leases totaled $3.60 billion at September 30, 2009, decreasing by $136.8 million or 3.66%, from loans and leases of $3.74 billion at December 31, 2008.

Investment Securities

Investment securities totaled $2.29 billion at September 30, 2009. This represents a decrease of $104.9 million, or 4.38%, when compared with $2.40 billion in investment securities at September 30, 2008. It also represents a decrease of $210.6 million, or 8.42%, when compared with $2.50 billion in investment securities at December 31, 2008. During the first nine months of 2009, we sold certain securities with relatively short maturities and recognized a gain on sale of securities of $28.4 million.

During the third quarter of 2009, we also recognized an other-than-temporary impairment on a private-label mortgage-backed investment security. The total impairment of $1.8 million was reduced by $1.6 million for the non-credit portion which was reflected in other comprehensive income. The remaining $200,000 loss was recognized in third quarter earnings.

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. Except for the bond discussed above, the remaining private-label mortgage-backed issues of approximately $31 million are performing well. Ninety-four percent of our $696.7 million municipal bond portfolio contains securities which have an underlying rating of investment grade. Our municipal securities are located throughout the United States, with approximately $43.5 million, or 6.2%, located within the state of California. All municipal bond securities are fully performing.

Deposits

Total deposits and customer repos were $4.50 billion at September 30, 2009. This represents an increase of $943.6 million, or 26.53%, when compared with total deposits and customer repos of $3.56 billion at September 30, 2008. Total deposits and customer repos of $4.50 billion at September 30, 2009 increased by $634.1 million, or 16.40%, when compared to total deposits and customer repos of $3.87 billion at December 31, 2008. “Last year we expanded 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 $782.7 million, or 45.04%, from December 31, 2008. As a result of the increase in deposits and customer repurchases of $634.1 million and the net decrease of $210.6 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 nine months of 2009. “One of our goals has been to decrease our reliance on borrowed funds; we have made significant progress thus far and will continue our efforts going forward” commented Mr. Myers.

Asset Quality

The overall credit quality of the loan portfolio is sound. Our allowance for credit losses increased from $40.1 million as of September 30, 2008 and $54.0 million as of December 31, 2008 to $87.3 million as of September 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 $55.0 million during the first nine months of 2009. The allowance for credit losses was 2.43% and 1.11% of total loans and leases outstanding as of September 30, 2009 and 2008, respectively.

During the third quarter 2009, we increased provision for credit losses by $13.0 million and had net charge-offs of only $439,000. Net charge-offs as a percentage of average loans were .01% for the third quarter.

During the first nine months of 2009, we had loan charge-offs totaling $22.4 million and recoveries on previously charged-off loans of $718,000. This resulted in net charge-offs of $21.6 million. By comparison, during the first nine months of 2008, the Company had net charge-offs of $1.7 million.

“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 146% at June 30, 2009 to 150% at September 30, 2009. In looking forward, our goal is to be proactive in building our reserves, preparing for any further deterioration in economic conditions,” said Chris Myers.

We had $58.1 million in non-performing loans at September 30, 2009 or 1.61% of total loans. This compares to $17.7 million at December 31, 2008 and $16.6 million at September 30, 2008. At September 30, 2009, we had loans delinquent 30 to 89 days of $6.9 million. This compares to delinquent loans of $5.2 million as of December, 31, 2008, and $4.9 million as of September 30, 2008. Please see attached schedule for a breakdown of our non-performing assets and delinquency trends by loan type for the past five consecutive quarters.

A misconception is that most 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.

Our construction loan portfolio totaled $295.3 million as of September 30, 2009 down from $351.5 million as of December 31, 2008. This represents 8.2% of our total loans outstanding at September 30, 2009. Of the $295.3 million, $76.7 million is for residential construction and residential land loans. This represents 26% of the construction loans outstanding or 2.1% of our total loan portfolio. Of note, 34% of our total construction loan portfolio is based in the Inland Empire.

CitizensTrust

CitizensTrust has approximately $1.9 billion in assets under administration, including $991.9 million in assets under management, as of September 30, 2009. This compares with $2.0 billion in assets under administration, including $839.0 million in assets under management at September 30, 2008. CitizensTrust provides trust, investment and brokerage related services, as well as financial, estate and business succession planning.

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. On October 16^th, 2009, we acquired most of the assets of San Joaquin Bank (SJB) headquartered in Bakersfield, CA. Upon acquisition, SJB had approximately $732 million in total assets and five branch locations.

On a current-day basis, CVB Financial Corp. now has approximately $7.3 billion in assets. The Company serves 40 cities with 46 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

		September 30,								December 31,
		2009				2008				2008
Assets:
Cash and due from banks		$	222,158			$	92,421			$	95,297
Investment Securities available-for-sale			2,285,456				2,387,444				2,493,476
Investment Securities held-to-maturity			4,237				7,121				6,867
Federal funds sold and Interest-bearing balances due from depository institutions			150,285				475				285
Investment in stock of Federal Home Loan Bank (FHLB)			93,240				92,354				93,240
Loans and lease finance receivables			3,600,087				3,595,337				3,736,838
Less allowance for credit losses			(87,316	)			(40,058	)			(53,960	)
Net loans and lease finance receivables			3,512,771				3,555,279				3,682,878
Total earning assets			6,045,989				6,042,673				6,276,746
Premises and equipment, net			42,285				44,015				44,420
Intangibles			8,763				11,917				11,020
Goodwill			55,097				55,097				55,097
Cash value of life insurance			108,744				106,840				106,366
Other assets			63,229				68,823				60,705
TOTAL		$	6,546,265			$	6,421,786			$	6,649,651
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Demand Deposits (noninterest-bearing)		$	1,416,558			$	1,302,205			$	1,334,248
Investment Checking			415,644				327,337				324,907
Savings/MMDA			984,194				851,245				818,872
Time Deposits			1,223,375				714,754				1,030,129
Total Deposits			4,039,771				3,195,541				3,508,156
Demand Note to U.S. Treasury			3,441				3,734				5,373
Customer Repurchase Agreements			460,326				360,973				357,813
Repurchase Agreements			250,000				250,000				250,000
Borrowings			955,000				2,006,598				1,737,660
Junior Subordinated Debentures			115,055				115,055				115,055
Other liabilities			71,162				55,065				60,702
Total Liabilities			5,894,755				5,986,966				6,034,759
Stockholders’ equity:
Stockholders’ equity			604,610				451,049				586,161
Accumulated other comprehensive income (loss), net of tax			46,900				(16,229	)			28,731
			651,510				434,820				614,892
TOTAL		$	6,546,265			$	6,421,786			$	6,649,651

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

		Three months ended September 30,								Nine months ended September 30,
		2009				2008				2009				2008
Assets:
Cash and due from banks		$	197,380			$	100,408			$	129,946			$	102,942
Investment securities available-for-sale			2,294,860				2,433,409				2,362,978				2,456,734
Investment securities held-to-maturity			6,152				7,206				6,423				6,930
Federal funds sold and Interest-bearing balances due from depository institutions			143,220				752				68,786				1,334
Investment in stock of Federal Home Loan Bank (FHLB)			93,240				91,729				93,240				88,508
Loans and lease finance receivables			3,606,945				3,556,724				3,646,862				3,459,916
Less allowance for credit losses			(81,956	)			(38,634	)			(72,635	)			(36,067	)
Net loans and lease finance receivables			3,524,989				3,518,090				3,574,227				3,423,849
Total earning assets			6,062,461				6,051,186				6,105,654				5,977,355
Premises and equipment, net			42,695				44,783				43,665				45,907
Intangibles			9,051				12,267				9,779				13,160
Goodwill			55,097				55,097				55,097				55,108
Cash value of life insurance			108,305				106,016				107,548				104,911
Other assets			83,125				74,864				82,780				71,243
TOTAL		$	6,558,114			$	6,444,621			$	6,534,469			$	6,370,626
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing		$	1,427,916			$	1,299,630			$	1,380,349			$	1,257,843
Interest-bearing			2,594,891				1,936,102				2,455,159				1,994,533
Total Deposits			4,022,807				3,235,732				3,835,508				3,252,376
Other borrowings			1,681,179				2,600,493				1,869,471				2,490,488
Junior Subordinated Debentures			115,055				115,055				115,055				115,055
Other liabilities			62,538				46,620				68,597				63,389
Total Liabilities			5,881,579				5,997,900				5,888,631				5,921,308
Stockholders’ equity:
Stockholders’ equity			651,817				452,553				616,383				442,378
Accumulated other comprehensive income (loss), net of tax			24,718				(5,832	)			29,455				6,940
			676,535				446,721				645,838				449,318
TOTAL		$	6,558,114			$	6,444,621			$	6,534,469			$	6,370,626

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

		For the Three Months								For the Nine Months
		Ended September 30,								Ended September 30,
		2009				2008				2009				2008
Interest Income:
Loans and leases, including fees		$	50,561			$	52,954			$	149,858			$	159,211
Investment securities:
Taxable			18,278				22,142				59,848				65,448
Tax-advantaged			6,749				7,036				20,560				21,336
Total investment income			25,027				29,178				80,408				86,784
Dividends from FHLB Stock			195				1,367				195				3,666
Federal funds sold & Interest-bearing CDs with other institutions			136				8				195				34
Total interest income			75,919				83,507				230,656				249,695
Interest Expense:
Deposits			5,934				7,417				18,963				28,233
Borrowings and junior subordinated debentures			15,179				27,078				47,500				79,838
Total interest expense			21,113				34,495				66,463				108,071
Net interest income before provision for credit losses			54,806				49,012				164,193				141,624
Provision for credit losses			13,000				4,000				55,000				8,700
Net interest income after provision for credit losses			41,806				45,012				109,193				132,924
Other Operating Income:
Impairment loss on investment securities			(1,850	)			—				(1,850	)			—
Less: Noncredit-related impairment loss recorded in other comprehensive income			1,618				—				1,618				—
Net impairment loss on investment securities recognized in earnings			(232	)			—				(232	)			—
Service charges on deposit accounts			3,720				3,829				11,080				11,381
Trust and investment services			1,682				2,019				4,948				5,906
Gain on sale of investment securities			6,898				—				28,446				—
Other			3,034				2,525				6,926				7,929
Total other operating income			15,102				8,373				51,168				25,216
Other operating expenses:
Salaries and employee benefits			15,618				15,943				46,814				46,987
Occupancy			2,777				2,923				8,315				8,874
Equipment			1,553				1,888				4,884				5,556
Professional services			1,646				1,600				4,998				5,015
Amortization of intangible assets			734				898				2,257				2,694
Provision for unfunded commitments			450				(100	)			1,800				1,150
OREO Expense			24				—				1,198				—
Other			7,043				5,905				23,955				17,558
Total other operating expenses			29,845				29,057				94,221				87,834
Earnings before income taxes			27,063				24,328				66,140				70,306
Income taxes			7,741				6,868				17,789				19,510
Net earnings		$	19,322			$	17,460			$	48,351			$	50,796
Basic earnings per common share		$	0.10			$	0.21			$	0.40			$	0.61
Diluted earnings per common share		$	0.10			$	0.21			$	0.40			$	0.61
Cash dividends per common share		$	0.085			$	0.085			$	0.255			$	0.255

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

		Three months ended September 30,								Nine months ended September 30,
		2009				2008				2009				2008
Interest income — (Tax-Effected) (te)		$	78,679			$	86,368			$	239,046			$	258,356
Interest Expense			21,113				34,495				66,463				108,071
Net Interest income — (te)		$	57,566			$	51,873			$	172,583			$	150,285
Return on average assets			1.17	%			1.08	%			0.99	%			1.07	%
Return on average equity			11.33	%			15.55	%			10.01	%			15.10	%
Efficiency ratio			52.44	%			54.43	%			58.76	%			55.54	%
Net interest margin (te)			3.75	%			3.43	%			3.75	%			3.37	%
Weighted average shares outstanding
Basic			99,241,561				83,148,006				88,600,560				83,105,726
Diluted			99,332,146				83,372,848				88,697,581				83,328,918
Dividends declared		$	9,012			$	7,088			$	23,174			$	21,239
Dividend payout ratio			46.64	%			40.60	%			47.93	%			41.81	%
Number of shares outstanding-EOP			106,231,511				83,270,263
Book value per share		$	6.13			$	5.22

		September 30,
		2009				2008
Non-performing Assets (dollar amount in thousands):
Non-accrual loans		$	58,134			$	16,637
Loans past due 90 days or more and still accruing interest			—				—
Other real estate owned (OREO), net			1,137				1,927
Total non-performing assets		$	59,271			$	18,564
Percentage of non-performing assets to total loans outstanding and OREO			1.65	%			0.52	%
Percentage of non-performing assets to total assets			0.91	%			0.29	%
Allowance for loan losses to non-performing assets			147.32	%			215.78	%
Net Charge-off to Average loans			0.59	%			0.05	%
Allowance for Credit Losses:
Beginning Balance		$	53,960			$	33,049
Total Loans Charged-Off			(22,362	)			(1,992	)
Total Loans Recovered			718				301
Net Loans Charged-off			(21,644	)			(1,691	)
Provision Charged to Operating Expense			55,000				8,700
Allowance for Credit Losses at End of period		$	87,316			$	40,058

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,		$	12.11			$	5.31			$	11.20			$	8.45			$	13.38			$	11.42
June 30,		$	7.77			$	5.69			$	12.10			$	9.44			$	12.40			$	10.63
September 30,		$	8.70			$	4.90			$	15.01			$	7.65			$	12.71			$	9.51
December 31,										$	13.89			$	9.29			$	11.97			$	9.98

Quarterly Consolidated Statements of Earnings

		3Q				2Q				1Q				4Q				3Q
		2009				2009				2009				2008				2008
Interest income
Loans, including fees		$	50,561			$	49,771			$	49,526			$	53,416			$	52,954
Investment securities and federal funds sold			25,358				26,004				29,436				29,407				30,553
			75,919				75,775				78,962				82,823				83,507
Interest expense
Deposits			5,934				6,439				6,590				7,569				7,417
Other borrowings			15,179				15,241				17,080				23,200				27,078
			21,113				21,680				23,670				30,769				34,495
Net interest income before provision for credit losses			54,806				54,095				55,292				52,054				49,012
Provision for credit losses			13,000				20,000				22,000				17,900				4,000
Net interest income after provision for credit losses			41,806				34,095				33,292				34,154				45,012
Non-interest income			15,102				19,709				16,357				9,242				8,373
Non-interest expenses			29,845				32,979				31,397				27,954				29,057
Earnings before income taxes			27,063				20,825				18,252				15,442				24,328
Income taxes			7,741				4,964				5,084				3,165				6,868
Net earnings		$	19,322			$	15,861			$	13,168			$	12,277			$	17,460
Basic earning per common share		$	0.10			$	0.17			$	0.13			$	0.14			$	0.21
Diluted earnings per common share		$	0.10			$	0.17			$	0.13			$	0.14			$	0.21
Cash dividends per common share		$	0.085			$	0.085			$	0.085			$	0.085			$	0.085
Dividends Declared		$	9,012			$	7,079			$	7,083			$	7,078			$	7,088

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

Distribution of Loan Portfolio

		9/30/2009				6/30/2009				3/31/2009				12/31/2008				9/30/2008
Commercial and Industrial		$	385,274			$	372,162			$	355,591			$	370,829			$	356,973
Real Estate:
Construction			295,315				303,629				333,234				351,543				359,859
Commercial Real Estate			1,959,725				1,964,258				1,965,531				1,945,706				1,932,778
SFR Mortgage			290,831				306,225				328,145				333,931				341,389
Consumer			67,317				67,947				69,708				66,255				61,710
Municipal lease finance receivables			162,962				165,527				169,230				172,973				173,600
Auto and equipment leases			34,072				37,242				41,708				45,465				47,753
Dairy and Livestock			411,574				405,427				404,090				459,329				331,333
Gross Loans			3,607,070				3,622,417				3,667,237				3,746,031				3,605,395
Less:
Deferred net loan fees			(6,983	)			(7,661	)			(8,378	)			(9,193	)			(10,058	)
Allowance for credit losses			(87,316	)			(74,755	)			(65,755	)			(53,960	)			(40,058	)
Net Loans		$	3,512,771			$	3,540,001			$	3,593,104			$	3,682,878			$	3,555,279

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

Non-Performing Assets & Delinquency Trends

		September 30,				June 30,				March 31,				December 31,				September 30,
		2009				2009				2009				2008				2008
Non-Performing Loans
Residential Construction and Land		$	15,729			$	17,348			$	20,943			$	7,524			$	8,020
Commercial Construction			19,636				21,270				22,102				—				—
Residential Mortgage			8,102				4,632				2,203				3,116				2,062
Commercial Real Estate			13,522				7,041				1,661				4,658				4,995
Commercial and Industrial			1,045				859				792				2,074				1,248
Consumer			100				115				336				312				312
Total		$	58,134			$	51,265			$	48,037			$	17,684			$	16,637
% of Total Loans			1.61	%			1.42	%			1.31	%			0.47	%			0.46	%
Past Due 30-89 Days
Commercial Construction		$	—			$	—			$	—			$	—			$	2,500
Residential Mortgage			1,510				2,069				3,814				1,931				481
Commercial Real Estate			190				1,074				8,341				2,402				19
Commercial and Industrial			5,094				590				1,720				592				1,852
Dairy & Livestock			—				3,551				—				—				—
Consumer			87				8				62				231				55
Total		$	6,881			$	7,292			$	13,937			$	5,156			$	4,907
% of Total Loans			0.19	%			0.20	%			0.38	%			0.14	%			0.14	%
OREO
Residential Construction and Land		$	1,137			$	1,789			$	2,416			$	6,158			$	1,612
Commercial Real Estate			—				1,187				4,612				87				—
Commercial and Industrial			—				893				893				—				—
Residential Mortgage			—				—				745				320				315
Consumer			—				166				—				—				—
Total		$	1,137			$	4,035			$	8,666			$	6,565			$	1,927
Total Non-Performing, Past Due & OREO		$	66,152			$	62,592			$	70,640			$	29,405			$	23,471
% of Total Loans			1.84	%			1.73	%			1.93	%			0.79	%			0.65	%

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

		September 30, 2009
		Total Loans
Total Loans by County		(amounts in thousands)
Los Angeles		$	1,185,471				32.9	%
Inland Empire			788,770				21.9	%
Central Valley			619,352				17.2	%
Orange			525,939				14.5	%
Other Areas			487,538				13.5	%
		$	3,607,070				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):

		September 30, 2009
		Three months ended				Nine months 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		$	22,860			$	65,491
Provision for Credit Losses			(13,000	)			(55,000	)
Gain on Sale of Securities			6,898				28,446
One-time FDIC Special Assessment			—				(3,000	)
Tax Effect			2,564				12,414
GAAP Net Earnings		$	19,322			$	48,351

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 Nine Months
		Ended September 30,												Ended September 30,
		2009												2009
														Excluding
														provision for				Provision for
		Excluding												credit losses,				credit losses, gain
		provision for				Provision for								gain on sale of				on sale of
		credit losses and				credit losses and								securities, and				securities, and				GAAP
		gain on sale of				gain on sale of				GAAP Net				FDIC special				FDIC special				Net
		securities				securities				Earnings				assessment				assessment				Earnings
		(amounts in thousands)												(amounts in thousands)
Other Operating Expense		$	29,845			$	—			$	29,845			$	91,221			$	3,000			$	94,221
Net Revenues		$	63,010			$	(6,102	)		$	56,908			$	186,914			$	(26,554	)		$	160,360
Net Earnings		$	22,860			$	(3,538	)		$	19,322			$	65,491			$	(17,141	)		$	48,350
Return on Beginning Equity			14.55	%							12.30	%			14.24	%							10.51	%
Return on Average Equity			13.41	%							11.33	%			13.56	%							10.01	%
Return on Average Assets			1.38	%							1.17	%			1.34	%							0.99	%
Efficiency Ratio			47.37	%							52.44	%			48.80	%							58.76	%

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.