Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 16, 2008
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) |
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.):
| 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)) |
TABLE OF CONTENTS
| Item 2.02 Results of Operations and Financial Condition | ||||||||
| Item 8.01 Other Events | ||||||||
| SIGNATURES | ||||||||
| Exhibit Index | ||||||||
| EXHIBIT 99.1 | ||||||||
Table of Contents
Item 2.02 Results of Operations and Financial Condition
On July 16, 2008, CVB Financial Corp. issued a press release setting forth its second quarter
ending June 30, 2008 earnings. A copy of this press release is attached hereto as Exhibit 99.1 and
is being furnished pursuant to this Item 2.02.
Item 8.01 Other Events
The Board of Directors of CVB Financial Corp. approved, at its July 16, 2008 meeting, a new
program to repurchase up to 5,390,482 shares of its common stock. This program is being combined
with the 4,609,518 shares that remain unpurchased from CVB’s previous stock repurchase program
approved in August 2007. Accordingly, CVB will have the authority to repurchase up to 10,000,000
shares (this number will not be adjusted for stock splits, stock dividends and the like) of its
common stock in the open market or in privately negotiated transactions, at times and at prices
considered appropriate by CVB, depending upon prevailing market conditions and other corporate and
legal considerations.
2
Table of Contents
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 16, 2008
|
By: | /s/ Edward J. Biebrich Jr.
|
||||
| Executive Vice President and Chief Financial Officer |
3
Table of Contents
Exhibit 99.1
Press Release
For Immediate Release
For Immediate Release
| Contact: | Christopher D. Myers | |||
| President and CEO | ||||
| (909) 980-4030 |
CVB Financial Corp. Reports Second Quarter Earnings
Ontario, CA, July 16, 2008- CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business
Bank (“the Company”), announced the results for the second quarter of 2008.
Net Income
CVB Financial Corp. reported net income of $17.2 million for the second quarter ending June 30,
2008. This represents an increase of $1.2 million, or 7.51%, when compared with net earnings of
$16.0 million for the second quarter of 2007. Diluted earnings per share were $0.21 for the second
quarter of 2008. This was up $0.02, or 8.36%, from diluted earnings per share of $0.19 for the
same period last year. The net income for the second quarter of 2008 includes a provision of $3.0
million for credit losses. There was no such provision in the second quarter of 2007. Had we not
made a provision in the second quarter of 2008, our net income would have been $19.3 million, an
increase of $3.3 million, or 21.13%, compared to the second quarter of 2007.
Net income for the second quarter of 2008 produced a return on beginning equity of 15.27%, a return
on average equity of 14.85% and a return on average assets of 1.07%. The efficiency ratio for the
second quarter was 56.06%, and operating expenses as a percentage of average assets were 1.90%.
Net income for the six months ending June 30, 2008 was $33.3 million. This represents an increase
of $2.2 million, or 7.20%, when compared with net earnings of $31.1 million for the same period of
2007. Diluted earnings per share were $0.40. This was up $0.03, or 8.18%, from diluted earnings
per share of $0.37 for the same period last year. The net income for the six months of 2008
includes a provision of $4.7 million for credit losses. There was no such provision in the first
six months of 2007. Had we not made a provision in the first six months of 2008, our net income
would have been $36.7 million, an increase of $5.6 million, or 18.16%, compared to the same period
in 2007.
- 1 -
Net income for the six months ending June 30, 2008 produced a return on beginning equity of 15.78%,
a return on average equity of 14.88% and a return on average assets of 1.06%. The efficiency ratio
for the six-month period was 56.11%, and operating expenses as a percentage of average assets was
1.87%.
Net Interest Income and Net Interest Margin
Net interest income, after provision for credit losses, totaled $45.5 million for the second
quarter of 2008. This represents an increase of $7.2 million, or 18.81%, from the $38.3 million for
the same period of 2007. This increase resulted from an $11.0 million decrease in interest expense,
offset by a $0.8 million decrease in interest income and a $3.0 million increase in the provision
for credit losses. The decrease in interest income was primarily due to the decrease in interest
rates, partially offset by the growth in average earning assets. The decrease in interest expense
was due to the decrease in the cost of interest bearing deposits and borrowed funds, partially
offset by the increase in average borrowed funds.
Net interest margin (tax equivalent) increased from 2.92% for the second quarter of 2007 to 3.43%
for the second quarter of 2008. Total average earning asset yields decreased from 6.13% for the
second quarter of 2007 to 5.69% for the second quarter of 2008. The cost of funds decreased from
4.21% for the second quarter of 2007 to 2.95% for the second quarter of 2008. 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 totaled $87.9 million for the six months ending June 30, 2008. This represents
an increase of $9.9 million, or 12.64%, from the net interest income of $78.0 million for the same
period in 2007. This increase resulted from a $16.3 million decrease in interest expense, which
was offset by a $1.7 million decrease in interest income and a $4.7 million increase in the
provision for credit losses. Net interest income before the provision for credit losses increased
$14.6 million, or 18.66%, for the first six months of 2008. The decrease in interest income was
primarily due to the decrease in interest rates partially offset by the growth in average earning
assets. The decrease in interest expense was due to the decreases in interest rates on deposits
and borrowed funds partially offset by the increase in average borrowed funds.
The net interest margin (tax equivalent) increased from 2.97% for the first six months of 2007 to
3.34% for the first six months of 2008. Total average earning asset yields have decreased from
6.16% for the first six months of 2007 to 5.80% for the first six months of 2008. The cost of
funds has decreased from 4.18% for the first six months of 2007 to 3.20% for the first six months
of 2008.
Balance Sheet
The Company reported total assets of $6.45 billion at June 30, 2008. This represented an increase
of $317.8 million, or 5.18%, over total assets of $6.14 billion as of June 30, 2007. Earning assets
totaled $6.07 billion and were up $364.4 million, or 6.39%, when
- 2 -
compared with earning assets of $5.70 billion as of June 30, 2007. Total deposits and customer
repurchase agreements were $3.61 billion as of June 30, 2008. This represents a decrease of $152.0
million, or 4.04%, when compared with total deposits and customer repurchase agreements of $3.77
billion at June 30, 2007. Gross loans and leases totaled $3.52 billion at June 30, 2008. This
represents an increase of $213.0 million, or 6.45%, when compared with gross loans and leases of
$3.30 billion at June 30, 2007.
Investment Securities
Investment securities totaled $2.50 billion at June 30, 2008. This represents an increase of $153.5
million, or 6.55%, when compared with $2.34 billion in investment securities at June 30, 2007.
CitizensTrust
CitizensTrust has approximately $2.5 billion in assets under administration and $807 million in
assets under management. They provide trust, investment and brokerage related services, as well as
financial, estate and business succession planning. Income from CitizensTrust was $2.0 million in
the current quarter, up $228,000 from the $1.7 million in the second quarter of 2007.
Loan and Lease Quality
The credit quality of the loan portfolio remains solid. The allowance for credit losses increased
from $30.2 million as of June 30, 2007 to $37.3 million as of June 30, 2008. The increase was
primarily due to the provision for credit losses of $4.0 million in the fourth quarter of 2007 and
$4.7 million in the first six months of 2008. During the first six months of 2008, we had loan
charge-offs totaling $685,000 and recoveries on previously charged off loans of $246,000. This
resulted in net charge-offs of $439,000. By comparison, during the first six months of 2007, the
Company had net charge-offs of $164,000, and no provision for credit losses. The allowance for
credit losses was 1.06% and 0.92% of total loans and leases outstanding as of June 30, 2008 and
2007, respectively.
At December 31, 2007, we had $1.4 million in non-performing loans. As of March 31, 2008, we had
$2.7 million in non-performing loans and we had $12.3 million in non-performing loans at June 30,
2008, or 0.35% of total loans. The non-performing loans consist of $9.8 million in residential
construction and residential land loans, $1.7 million in single family mortgage loans, $0.5 million
in commercial loans and $0.3 million in consumer loans. In addition, we had $1.1 million in Other
Real Estate Owned. The OREO represents a foreclosed condominium project. The majority of the loan
amount was charged-off in December 2007.
At December 31, 2007, we had loans delinquent 30 to 89 days of $2.2 million. This increased to
$18.2 million at March 31, 2008 and decreased to $1.0 million at June 30, 2008. Of the March 31,
2008 delinquencies, $1.8 million became non-performing at June 30, 2008 and the remaining were
brought current. As a percentage of total loans, delinquencies were 0.06% at December 31, 2007,
0.53% at March 31, 2008 and 0.03% at June 30, 2008.
- 3 -
Our construction loan portfolio totaled $333.3 million as of June 30, 2008. This represents 9.45%
of our total loans outstanding at the end of the quarter. Of the $333.3 million, $120.2 million is
for residential construction and residential land loans. This represents 36.07% of the
construction loans outstanding, or 3.41% of our total loan portfolio. Of note, 32.26% of our
construction loan portfolio is based in the Inland Empire.
Stock Repurchase Program
At the July 16, 2008 board meeting, the Board of Directors approved increasing the amount of shares
in the Company’s repurchase program to 10 million shares. “Due to the tremendous amount of short
selling in the financial services sector, the Board felt that it was appropriate to increase our
capacity to repurchase our shares,” said Chris Myers, President and CEO.
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
40 cities with 44 business financial centers and 3 commercial banking groups in the Inland Empire,
Los Angeles County, Orange County and the Central Valley areas of California. Its leasing division,
Citizens Financial Services, provides vehicle leasing, equipment leasing and real estate loan
services.
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 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, the impact of changes in interest rates, a decline
in economic conditions, adverse changes resulting from natural and manmade disasters, effects of
government regulation and increased competition among financial services providers 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, 2007, 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.
###
- 4 -
CVB FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(unaudited)
dollars in thousands
CONSOLIDATED BALANCE SHEET
(unaudited)
dollars in thousands
| June 30, | December 31, | |||||||||||
| 2008 | 2007 | 2007 | ||||||||||
Assets: |
||||||||||||
Cash and due from banks |
$ | 110,966 | $ | 142,699 | $ | 89,486 | ||||||
Investment Securities available-for-sale |
2,490,677 | 2,344,537 | 2,390,566 | |||||||||
Investment Securities held-to-maturity |
7,380 | — | — | |||||||||
Federal funds sold and Interest-bearing
balances due from depository
institutions |
475 | 3,070 | 475 | |||||||||
Investment in stock of Federal Home Loan
Bank (FHLB) |
90,987 | 83,392 | 79,983 | |||||||||
Loans and lease finance receivables |
3,516,243 | 3,303,273 | 3,495,144 | |||||||||
Less allowance for credit losses |
(37,310 | ) | (30,244 | ) | (33,049 | ) | ||||||
Net loans and lease finance receivables |
3,478,933 | 3,273,029 | 3,462,095 | |||||||||
Total earning assets |
6,068,452 | 5,704,028 | 5,933,119 | |||||||||
Premises and equipment, net |
45,206 | 46,391 | 46,855 | |||||||||
Intangibles |
12,815 | 8,944 | 14,611 | |||||||||
Goodwill |
55,097 | 60,357 | 55,167 | |||||||||
Cash value of life insurance |
105,644 | 101,222 | 103,400 | |||||||||
Other assets |
55,666 | 72,433 | 51,325 | |||||||||
TOTAL |
$ | 6,453,846 | $ | 6,136,074 | $ | 6,293,963 | ||||||
Liabilities and Stockholders’ Equity
|
||||||||||||
Liabilities: |
||||||||||||
Deposits: |
||||||||||||
Demand Deposits
(noninterest-bearing) |
$ | 1,281,838 | $ | 1,340,495 | $ | 1,295,959 | ||||||
Investment Checking |
346,916 | 334,229 | 409,912 | |||||||||
Savings/MMDA |
861,337 | 912,001 | 868,123 | |||||||||
Time Deposits |
723,542 | 921,756 | 790,355 | |||||||||
Total Deposits |
3,213,633 | 3,508,481 | 3,364,349 | |||||||||
Demand Note to U.S. Treasury |
77 | 4,754 | 540 | |||||||||
Customer Repurchase Agreements |
400,306 | 257,475 | 336,309 | |||||||||
Repurchase Agreements |
250,000 | 250,000 | 250,000 | |||||||||
Borrowings |
1,994,850 | 1,561,000 | 1,753,500 | |||||||||
Junior Subordinated Debentures |
115,055 | 115,859 | 115,055 | |||||||||
Other liabilities |
45,731 | 43,621 | 49,262 | |||||||||
Total Liabilities |
6,019,652 | 5,741,190 | 5,869,015 | |||||||||
Stockholders’ equity: |
||||||||||||
Stockholders’ equity |
439,912 | 420,217 | 420,818 | |||||||||
Accumulated other comprehensive income
(loss), net of tax |
(5,718 | ) | (25,333 | ) | 4,130 | |||||||
| 434,194 | 394,884 | 424,948 | ||||||||||
TOTAL |
$ | 6,453,846 | $ | 6,136,074 | $ | 6,293,963 | ||||||
CVB FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCE SHEET
(unaudited)
dollars in thousands
CONSOLIDATED AVERAGE BALANCE SHEET
(unaudited)
dollars in thousands
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
Assets: |
||||||||||||||||
Cash and due from banks |
$ | 100,568 | $ | 122,164 | $ | 104,223 | $ | 123,289 | ||||||||
Investment securities
available-for-sale |
2,550,132 | 2,404,257 | 2,468,525 | 2,457,960 | ||||||||||||
Investment securities
held-to-maturity |
7,463 | — | 6,790 | — | ||||||||||||
Federal funds sold and
Interest-bearing balances
due from depository
institutions |
1,958 | 155 | 1,627 | 299 | ||||||||||||
Investment in stock of
Federal Home Loan Bank
(FHLB) |
89,043 | 81,657 | 86,880 | 80,852 | ||||||||||||
Loans and lease finance
receivables |
3,438,189 | 3,145,131 | 3,410,981 | 3,102,396 | ||||||||||||
Less allowance for
credit losses |
(35,635 | ) | (27,856 | ) | (34,770 | ) | (27,788 | ) | ||||||||
Net loans and lease
finance receivables |
3,402,554 | 3,117,275 | 3,376,211 | 3,074,608 | ||||||||||||
Total earning assets |
6,051,150 | 5,603,344 | 5,940,033 | 5,613,719 | ||||||||||||
Premises and equipment, net |
46,176 | 46,017 | 46,475 | 45,746 | ||||||||||||
Intangibles |
13,163 | 9,175 | 13,612 | 9,468 | ||||||||||||
Goodwill |
55,097 | 31,805 | 55,114 | 31,669 | ||||||||||||
Cash value of life
insurance |
104,918 | 100,891 | 104,353 | 100,548 | ||||||||||||
Other assets |
75,019 | 87,686 | 72,492 | 86,842 | ||||||||||||
TOTAL |
$ | 6,446,091 | $ | 6,001,082 | $ | 6,336,302 | $ | 6,011,281 | ||||||||
Liabilities and
Stockholders’ Equity
|
||||||||||||||||
Liabilities: |
||||||||||||||||
Deposits: |
||||||||||||||||
Noninterest-bearing |
$ | 1,248,113 | $ | 1,268,150 | $ | 1,236,720 | $ | 1,275,906 | ||||||||
Interest-bearing |
1,997,510 | 2,120,022 | 2,024,069 | 2,117,099 | ||||||||||||
Total Deposits |
3,245,623 | 3,388,172 | 3,260,789 | 3,393,005 | ||||||||||||
Other borrowings |
2,530,603 | 2,062,509 | 2,434,881 | 2,070,300 | ||||||||||||
Junior Subordinated
Debentures |
115,055 | 108,501 | 115,055 | 108,376 | ||||||||||||
Other liabilities |
90,148 | 42,883 | 74,946 | 41,084 | ||||||||||||
Total Liabilities |
5,981,429 | 5,602,065 | 5,885,671 | 5,612,765 | ||||||||||||
Stockholders’ equity: |
||||||||||||||||
Stockholders’ equity |
442,203 | 407,000 | 437,234 | 409,043 | ||||||||||||
Accumulated other
comprehensive income
(loss), net of tax |
22,459 | (7,983 | ) | 13,397 | (10,527 | ) | ||||||||||
| 464,662 | 399,017 | 450,631 | 398,516 | |||||||||||||
TOTAL |
$ | 6,446,091 | $ | 6,001,082 | $ | 6,336,302 | $ | 6,011,281 | ||||||||
CVB FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)
dollar amounts in thousands, except per share
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, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
Interest Income: |
||||||||||||||||
Loans and leases, including fees |
$ | 52,211 | $ | 53,726 | $ | 106,257 | $ | 106,440 | ||||||||
Investment securities: |
||||||||||||||||
Taxable |
22,430 | 21,717 | 43,306 | 44,810 | ||||||||||||
Tax-advantaged |
7,111 | 7,305 | 14,299 | 14,536 | ||||||||||||
Total investment income |
29,541 | 29,022 | 57,605 | 59,346 | ||||||||||||
Dividends from FHLB Stock |
1,205 | 967 | 2,299 | 2,105 | ||||||||||||
Federal funds sold & Interest-bearing CDs with other
institutions |
12 | 14 | 27 | 20 | ||||||||||||
Total interest income |
82,969 | 83,729 | 166,188 | 167,911 | ||||||||||||
Interest Expense: |
||||||||||||||||
Deposits |
8,537 | 17,928 | 20,816 | 35,086 | ||||||||||||
Borrowings and junior subordinated debentures |
25,949 | 27,518 | 52,760 | 54,778 | ||||||||||||
Total interest expense |
34,486 | 45,446 | 73,576 | 89,864 | ||||||||||||
Net interest income before provision for credit losses |
48,483 | 38,283 | 92,612 | 78,047 | ||||||||||||
Provision for credit losses |
3,000 | — | 4,700 | — | ||||||||||||
Net interest income after
provision for credit losses |
45,483 | 38,283 | 87,912 | 78,047 | ||||||||||||
Other Operating Income: |
||||||||||||||||
Service charges on deposit accounts |
3,807 | 3,211 | 7,552 | 6,487 | ||||||||||||
Trust and investment services |
1,975 | 1,747 | 3,888 | 3,698 | ||||||||||||
Gain on sale of investment securities |
— | — | — | — | ||||||||||||
Other |
2,920 | 2,638 | 5,403 | 5,309 | ||||||||||||
Total other operating income |
8,702 | 7,596 | 16,843 | 15,494 | ||||||||||||
Other operating expenses: |
||||||||||||||||
Salaries and employee benefits |
15,501 | 13,583 | 31,044 | 27,655 | ||||||||||||
Occupancy |
3,080 | 2,345 | 5,951 | 4,750 | ||||||||||||
Equipment |
2,019 | 1,815 | 3,668 | 3,550 | ||||||||||||
Professional services |
1,874 | 1,587 | 3,415 | 2,691 | ||||||||||||
Amortization of intangible assets |
898 | 588 | 1,796 | 1,177 | ||||||||||||
Provision for unfunded commitments |
1,000 | — | 1,250 | — | ||||||||||||
Other |
6,006 | 4,927 | 11,653 | 10,922 | ||||||||||||
Total other operating expenses |
30,378 | 24,845 | 58,777 | 50,745 | ||||||||||||
Earnings before income taxes |
23,807 | 21,034 | 45,978 | 42,796 | ||||||||||||
Income taxes |
6,655 | 5,080 | 12,642 | 11,700 | ||||||||||||
Net earnings |
$ | 17,152 | $ | 15,954 | $ | 33,336 | $ | 31,096 | ||||||||
Basic earnings per common share |
$ | 0.21 | $ | 0.19 | $ | 0.40 | $ | 0.37 | ||||||||
Diluted earnings per common share |
$ | 0.21 | $ | 0.19 | $ | 0.40 | $ | 0.37 | ||||||||
Cash dividends per common share |
$ | 0.085 | $ | 0.085 | $ | 0.17 | $ | 0.17 | ||||||||
CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
Interest income — (Tax-Effected) (te) |
$ | 85,856 | $ | 86,184 | $ | 171,988 | $ | 172,796 | ||||||||
Interest Expense |
34,486 | 45,446 | 73,576 | 89,864 | ||||||||||||
Net Interest income — (te) |
$ | 51,370 | $ | 40,738 | $ | 98,412 | $ | 82,932 | ||||||||
Return on average assets |
1.07 | % | 1.07 | % | 1.06 | % | 1.04 | % | ||||||||
Return on average equity |
14.85 | % | 16.04 | % | 14.88 | % | 15.74 | % | ||||||||
Efficiency ratio |
56.06 | % | 54.15 | % | 56.11 | % | 54.25 | % | ||||||||
Net interest margin (te) |
3.43 | % | 2.92 | % | 3.34 | % | 2.97 | % | ||||||||
Weighted average shares outstanding |
||||||||||||||||
Basic |
83,105,378 | 83,489,680 | 83,128,353 | 83,691,851 | ||||||||||||
Diluted |
83,478,290 | 84,143,533 | 83,456,005 | 84,213,269 | ||||||||||||
Dividends declared |
$ | 7,058 | $ | 7,234 | $ | 14,151 | $ | 14,333 | ||||||||
Dividend payout ratio |
41.14 | % | 45.34 | % | 42.45 | % | 46.09 | % | ||||||||
Number of shares outstanding-EOP |
83,221,358 | 84,603,880 | ||||||||||||||
Book value per share |
$ | 5.22 | $ | 4.67 | ||||||||||||
| June 30, | ||||||||
| 2008 | 2007 | |||||||
Non-performing Assets (dollar amount in thousands): |
||||||||
Non-accrual loans |
$ | 12,337 | $ | 806 | ||||
Loans past due 90 days or more
and still accruing interest |
— | — | ||||||
Restructured loans |
— | — | ||||||
Other real estate owned (OREO), net |
1,137 | — | ||||||
Total non-performing assets |
$ | 13,474 | $ | 806 | ||||
Percentage of non-performing assets
to total loans outstanding and OREO |
0.38 | % | 0.02 | % | ||||
Percentage of non-performing
assets to total assets |
0.21 | % | 0.01 | % | ||||
Non-performing assets to
allowance for loan losses |
36.11 | % | 2.66 | % | ||||
Net Charge-off (Recovered) to Average loans |
0.01 | % | 0.01 | % | ||||
Allowance for Credit Losses: |
||||||||
Beginning Balance |
$ | 33,049 | $ | 27,737 | ||||
Total Loans Charged-Off |
(685 | ) | (216 | ) | ||||
Total Loans Recovered |
246 | 52 | ||||||
Net Loans Recovered |
(439 | ) | (164 | ) | ||||
Acqusition of First Coastal Bank |
0 | 2,671 | ||||||
Provision Charged to Operating Expense |
4,700 | — | ||||||
Allowance for Credit Losses at End of period |
$ | 37,310 | $ | 30,244 | ||||
CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(in thousands, except per share data)
(unaudited)
SELECTED FINANCIAL HIGHLIGHTS
(in thousands, except per share data)
(unaudited)
Quarterly Common Stock Price
| 2008 | 2007 | 2006 | ||||||||||||||||||||||
| Quarter End | High | Low | High | Low | High | Low | ||||||||||||||||||
March 31, |
$ | 11.20 | $ | 8.45 | $ | 13.38 | $ | 11.42 | $ | 15.60 | $ | 14.71 | ||||||||||||
June 30, |
$ | 12.10 | $ | 9.44 | $ | 12.40 | $ | 10.63 | $ | 15.59 | $ | 13.25 | ||||||||||||
September 30, |
$ | 12.71 | $ | 9.51 | $ | 14.24 | $ | 12.83 | ||||||||||||||||
December 31, |
$ | 11.97 | $ | 9.98 | $ | 14.13 | $ | 12.83 | ||||||||||||||||
Quarterly Consolidated Statements of Earnings
| 2Q | 1Q | 4Q | 3Q | 2Q | ||||||||||||||||
| 2008 | 2008 | 2007 | 2007 | 2007 | ||||||||||||||||
Interest income |
||||||||||||||||||||
Loans, including fees |
$ | 52,211 | $ | 54,046 | $ | 56,692 | $ | 58,677 | $ | 53,726 | ||||||||||
Investment securities and federal funds sold |
30,758 | 29,173 | 28,794 | 29,203 | 30,003 | |||||||||||||||
| 82,969 | 83,219 | 85,486 | 87,880 | 83,729 | ||||||||||||||||
Interest expense |
||||||||||||||||||||
Deposits |
8,537 | 12,278 | 15,766 | 18,445 | 17,928 | |||||||||||||||
Other borrowings |
25,949 | 26,811 | 28,333 | 27,727 | 27,518 | |||||||||||||||
| 34,486 | 39,089 | 44,099 | 46,172 | 45,446 | ||||||||||||||||
Net interest income before
provision for credit losses |
48,483 | 44,130 | 41,387 | 41,708 | 38,283 | |||||||||||||||
Provision for credit losses |
3,000 | 1,700 | 4,000 | — | — | |||||||||||||||
Net interest income after
provision for credit losses |
45,483 | 42,430 | 37,387 | 41,708 | 38,283 | |||||||||||||||
Non-interest income |
8,702 | 8,140 | 7,968 | 7,863 | 7,596 | |||||||||||||||
Non-interest expenses |
30,378 | 28,399 | 27,441 | 27,218 | 24,845 | |||||||||||||||
Earnings before income taxes |
23,807 | 22,171 | 17,914 | 22,353 | 21,034 | |||||||||||||||
Income taxes |
6,655 | 5,987 | 4,547 | 6,232 | 5,080 | |||||||||||||||
Net earnings |
$ | 17,152 | $ | 16,184 | $ | 13,367 | $ | 16,121 | $ | 15,954 | ||||||||||
Basic earning per common share |
$ | 0.21 | $ | 0.19 | $ | 0.16 | $ | 0.19 | $ | 0.19 | ||||||||||
Diluted earnings per common share |
$ | 0.21 | $ | 0.19 | $ | 0.16 | $ | 0.19 | $ | 0.19 | ||||||||||
Cash dividends per common share |
$ | 0.085 | $ | 0.085 | $ | 0.085 | $ | 0.085 | $ | 0.085 | ||||||||||
Dividends Declared |
$ | 7,058 | $ | 7,093 | $ | 7,069 | $ | 7,067 | $ | 7,234 | ||||||||||
CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(in thousands)
(unaudited)
SELECTED FINANCIAL HIGHLIGHTS
(in thousands)
(unaudited)
Distribution of Loan Portfolio
| 6/30/2008 | 3/31/2008 | 12/31/2007 | 9/30/2007 | 6/30/2007 | ||||||||||||||||
Commercial and Industrial |
$ | 424,515 | $ | 386,274 | $ | 365,214 | $ | 345,697 | $ | 334,968 | ||||||||||
Real Estate: |
||||||||||||||||||||
Construction |
333,303 | 318,549 | 308,354 | 307,506 | 310,390 | |||||||||||||||
Commercial Real Estate |
1,851,123 | 1,822,610 | 1,805,946 | 1,775,812 | 1,768,539 | |||||||||||||||
SFR Mortgage |
351,120 | 356,415 | 365,849 | 363,765 | 358,347 | |||||||||||||||
Consumer |
57,380 | 57,554 | 58,999 | 62,979 | 64,083 | |||||||||||||||
Municipal lease finance receivables |
163,459 | 153,270 | 156,646 | 143,399 | 143,316 | |||||||||||||||
Auto and equipment leases |
53,121 | 54,795 | 58,505 | 58,958 | 55,151 | |||||||||||||||
Dairy and Livestock |
293,133 | 254,156 | 387,488 | 265,806 | 280,114 | |||||||||||||||
Gross Loans |
3,527,154 | 3,403,623 | 3,507,001 | 3,323,922 | 3,314,908 | |||||||||||||||
Less: |
||||||||||||||||||||
Deferred net loan fees |
(10,911 | ) | (11,431 | ) | (11,857 | ) | (12,173 | ) | (11,635 | ) | ||||||||||
Allowance for credit losses |
(37,310 | ) | (34,711 | ) | (33,049 | ) | (30,428 | ) | (30,244 | ) | ||||||||||
Net Loans |
$ | 3,478,933 | $ | 3,357,481 | $ | 3,462,095 | $ | 3,281,321 | $ | 3,273,029 | ||||||||||
CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(in thousands)
(unaudited)
SELECTED FINANCIAL HIGHLIGHTS
(in thousands)
(unaudited)
Non-Performing Assets & Delinquency Trends
| June 30, | March 31, | December 31, | ||||||||||
| 2008 | 2008 | 2007 | ||||||||||
Non-Performing Loans |
||||||||||||
Construction |
$ | 9,802 | $ | 1,535 | $ | 1,137 | ||||||
Commercial |
551 | 19 | — | |||||||||
Mortgage |
1,672 | 1,153 | 298 | |||||||||
Consumer |
312 | — | — | |||||||||
Total |
$ | 12,337 | $ | 2,707 | $ | 1,435 | ||||||
% of Total Loans |
0.35 | % | 0.08 | % | 0.04 | % | ||||||
Past Due 30+ Days |
||||||||||||
Construction |
$ | — | $ | 768 | $ | — | ||||||
Commercial |
483 | 15,709 | 1,713 | |||||||||
Mortgage |
483 | 1,180 | 460 | |||||||||
Consumer |
— | 533 | 26 | |||||||||
Total |
$ | 966 | $ | 18,190 | $ | 2,199 | ||||||
% of Total Loans |
0.03 | % | 0.53 | % | 0.06 | % | ||||||
OREO |
||||||||||||
Construction |
$ | 1,137 | $ | 1,137 | $ | — | ||||||
Total |
$ | 1,137 | $ | 1,137 | $ | — | ||||||
Total Non-Performing, Past Due & OREO |
$ | 14,440 | $ | 22,034 | $ | 3,634 | ||||||
% of Total Loans |
0.41 | % | 0.65 | % | 0.10 | % | ||||||