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): October 16, 2008
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) |
Registrant’s telephone number, including area code: (909) 980-4030
Not Applicable
(Former name or former address, if changed since last report)
(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 16, 2008, CVB Financial Corp. issued a press release setting forth its second
quarter ending September 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.
2
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: October 17, 2008 | By: | /s/ Edward J. Biebrich Jr. | ||
| Edward J. Biebrich Jr., | ||||
| Executive Vice President and Chief Financial Officer | ||||
3
Exhibit Index
| 99.1 | Press Release, dated October 16, 2008 |
4
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 Third Quarter Earnings
Ontario, CA, October 16, 2008- CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens
Business Bank (“the Company”), announced financial results for the third quarter of 2008.
Net Income
CVB Financial Corp. reported net income of $17.5 million for the third quarter ending September 30,
2008. This represents an increase of $1.4 million, or 8.31%, when compared with net earnings of
$16.1 million for the third quarter of 2007. Diluted earnings per share were $0.21 for the third
quarter of 2008. This was up $0.02, or 10.45%, from diluted earnings per share of $0.19 for the
same period last year. The net income for the third quarter of 2008 includes a provision of $4.0
million for credit losses. There was no such provision in the third quarter of 2007.
Net income for the third quarter of 2008 produced a return on beginning equity of 16.00%, a return
on average equity of 15.55% and a return on average assets of 1.08%. The efficiency ratio for the
third quarter was 54.43%, and operating expenses as a percentage of average assets were 1.79%.
Net income for the nine months ending September 30, 2008 was $50.8 million. This represents an
increase of $3.6 million, or 7.58%, when compared with net earnings of $47.2 million for the same
period of 2007. Diluted earnings per share were $0.61. This was up $0.05, or 9.05%, from diluted
earnings per share of $0.56 for the same period last year. The net income for the nine months of
2008 includes a provision of $8.7 million for credit losses. There was no such provision in the
first nine months of 2007.
Net income for the nine months ending September 30, 2008 produced a return on beginning equity of
15.97%, a return on average equity of 15.10% and a return on average assets of 1.06%. The
efficiency ratio for the nine-month period was 55.54%, and operating expenses as a percentage of
average assets was 1.84%.
- 1 -
Net Interest Income and Net Interest Margin
Net interest income, after provision for credit losses, totaled $45.0 million for the third quarter
of 2008. This represents an increase of $3.3 million, or 7.92%, from the $41.7 million for the same
period of 2007. This increase resulted from an $11.7 million decrease in interest expense, offset
by a $4.4 million decrease in interest income and a $4.0 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 interest rates on deposits and borrowed funds, partially offset by the
outstanding balances on average borrowed funds.
Net interest margin (tax equivalent) increased from 3.11% for the third quarter of 2007 to 3.43%
for the third quarter of 2008. Total average earning asset yields decreased from 6.28% for the
third quarter of 2007 to 5.65% for the third quarter of 2008. The cost of funds decreased from
4.16% for the third quarter of 2007 to 2.91% for the third 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 $132.9 million for the nine months ending September 30, 2008. This
represents an increase of $13.1 million, or 11.00%, from the net interest income of $119.8 million
for the same period in 2007. This increase resulted from a $27.9 million decrease in interest
expense, which was offset by a $6.1 million decrease in interest income and an $8.7 million
increase in the provision for credit losses. Net interest income before the provision for credit
losses increased $21.9 million, or 18.26%, for the first nine 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 3.02% for the first nine months of 2007 to
3.37% for the first nine months of 2008. Total average earning asset yields have decreased from
6.20% for the first nine months of 2007 to 5.75% for the first nine months of 2008. The cost of
funds has decreased from 4.18% for the first nine months of 2007 to 3.10% for the first nine months
of 2008.
- 2 -
Balance Sheet
The Company reported total assets of $6.42 billion at September 30, 2008. This represents an
increase of $264.4 million, or 4.29%, over total assets of $6.16 billion as of September 30, 2007.
Earning assets totaled $6.04 billion. This was up $289.7 million, or 5.04%, when compared with
earning assets of $5.75 billion as of September 30, 2007. Total deposits and customer repurchase
agreements were $3.56 billion as of September 30, 2008. This represents a decrease of $209.2
million, or 5.56%, when compared with total deposits and customer repurchase agreements of $3.77
billion at September 30, 2007. Gross loans and leases totaled $3.60 billion at September 30, 2008.
This represents an increase of $283.6 million, or 8.56%, when compared with gross loans and leases
of $3.31 billion at September 30, 2007.
Investment Securities
Investment securities totaled $2.39 billion at September 30, 2008. This was even with the $2.39
billion in investment securities at September 30, 2007. Our investment portfolio continues to
perform well. We have no preferred stock nor do we have any 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 issues, approximately $55 million,
are performing well. Eighty-five percent of our municipal portfolio contains securities which have
an underlying rating of investment grade, not withstanding the credit-enhancing insurance. Of the
remaining fifteen percent of our municipal portfolio, one third is pre-refunded and the remainder
is primarily comprised of general obligations.
CitizensTrust
CitizensTrust has approximately $2.5 billion in assets under administration and $839 million in
assets under management at September 30, 2008 compared to $2.6 billion in assets under
administration and $809 million in assets under management at September 30, 2007. 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
$362,000 from the $1.7 million in the third quarter of 2007.
Loan and Lease Quality
The credit quality of the loan portfolio remains solid. The allowance for credit losses increased
from $30.4 million as of September 30, 2007 to $40.1 million as of September 30, 2008. The increase
was primarily due to the provision for credit losses of $4.0 million in the fourth quarter of 2007
and $8.7 million in the first nine months of 2008. During the first nine months of 2008, we had
loan charge-offs totaling $2.0 million and recoveries on previously charged off loans of $301,000.
This resulted in net charge-offs of $1.7 million. By comparison, during the first nine months of
2007, the Company had net recoveries of $20,000, and no provision for credit losses. The allowance
for credit losses was 1.11% and 0.92% of total loans and leases outstanding as of September 30,
2008 and 2007, respectively.
- 3 -
We had $16.6 million in non-performing loans at September 30, 2008, or 0.46% of total loans. This
compares to non-performing loans of $12.3 million at June 30, 2008 and $1.4 million at December 31,
2007. The non-performing loans consist of $8.0 million in residential construction and residential
land loans, $2.1 million in single family mortgage loans, $6.2 million in commercial loans and $0.3
million in consumer loans.
The $8.0 million in non-performing residential construction and residential land loans consists of
six loans for single family development projects to two borrower groups. The $2.1 million in
non-performing single family mortgage loans consists of four single family residences from our pool
of approximately 750 mortgage loans purchased over the past five years. Our last purchase of a
mortgage loan pool was in August 2007. The $6.2 million in non-performing commercial loans
primarily consist of two loans to a single borrower and are secured by both commercial and
residential real estate. The $312,000 in non-performing consumer loans consists of one equity line
of credit.
Other Real Estate Owned was $1.9 million at September 30, 2008. This was an increase of $790,000
from June 30, 2008. This was due to the addition of one single family residence from our mortgage
pools of $315,000 and a residential construction loan for $475,000. We now have three properties
in OREO.
At September 30, 2008, we had loans delinquent 30 to 89 days of $4.9 million. This compares to
delinquent loans of $1.0 million at June 30, 2008, $18.2 million at March 31, 2008 and $2.2 million
at December 31, 2007. As a percentage of total loans, delinquencies, excluding non-accruals, were
0.14% at September 30, 2008, 0.03% at June 30, 2008, 0.53% at March 31, 2008 and 0.06% at December
31, 2007.
Our construction loan portfolio totaled $359.9 million as of September 30, 2008. This represents
9.98% of our total loans outstanding at the end of the quarter. Of the $359.9 million, $115.9
million is for residential construction and residential land loans. This represents 32.21% of the
construction loans outstanding, or 3.22% of our total loan portfolio. Of note, 34.51% of our
construction loan portfolio is based in the Inland Empire.
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 4 commercial banking centers 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.
- 4 -
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.
###
- 5 -
CVB FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(unaudited)
dollars in thousands
CONSOLIDATED BALANCE SHEET
(unaudited)
dollars in thousands
| September 30, | December 31, | |||||||||||
| 2008 | 2007 | 2007 | ||||||||||
Assets: |
||||||||||||
Cash and due from banks |
$ | 92,421 | $ | 125,997 | $ | 89,486 | ||||||
Investment Securities available-for-sale |
2,387,444 | 2,390,306 | 2,390,566 | |||||||||
Investment Securities held-to-maturity |
7,121 | — | — | |||||||||
Federal funds sold and Interest-bearing balances
due from depository institutions |
475 | 570 | 475 | |||||||||
Investment in stock of Federal Home Loan Bank (FHLB) |
92,354 | 80,743 | 79,983 | |||||||||
Loans and lease finance receivables |
3,595,337 | 3,311,749 | 3,495,144 | |||||||||
Less allowance for credit losses |
(40,058 | ) | (30,428 | ) | (33,049 | ) | ||||||
Net loans and lease finance receivables |
3,555,279 | 3,281,321 | 3,462,095 | |||||||||
Total earning assets |
6,042,673 | 5,752,940 | 5,933,119 | |||||||||
Premises and equipment, net |
44,015 | 47,048 | 46,855 | |||||||||
Intangibles |
11,917 | 21,858 | 14,611 | |||||||||
Goodwill |
55,097 | 46,582 | 55,167 | |||||||||
Cash value of life insurance |
106,840 | 102,434 | 103,400 | |||||||||
Other assets |
68,823 | 60,534 | 51,325 | |||||||||
TOTAL |
$ | 6,421,786 | $ | 6,157,393 | $ | 6,293,963 | ||||||
Liabilities and Stockholders’ Equity |
||||||||||||
Liabilities: |
||||||||||||
Deposits: |
||||||||||||
Demand Deposits (noninterest-bearing) |
$ | 1,302,205 | $ | 1,292,825 | $ | 1,295,959 | ||||||
Investment Checking |
327,337 | 349,618 | 409,912 | |||||||||
Savings/MMDA |
851,245 | 929,321 | 868,123 | |||||||||
Time Deposits |
714,754 | 863,323 | 790,355 | |||||||||
Total Deposits |
3,195,541 | 3,435,087 | 3,364,349 | |||||||||
Demand Note to U.S. Treasury |
3,734 | 180 | 540 | |||||||||
Customer Repurchase Agreements |
360,973 | 330,666 | 336,309 | |||||||||
Repurchase Agreements |
250,000 | 250,000 | 250,000 | |||||||||
Borrowings |
2,006,598 | 1,545,500 | 1,753,500 | |||||||||
Junior Subordinated Debentures |
115,055 | 115,859 | 115,055 | |||||||||
Other liabilities |
55,065 | 73,284 | 49,262 | |||||||||
Total Liabilities |
5,986,966 | 5,750,576 | 5,869,015 | |||||||||
Stockholders’ equity: |
||||||||||||
Stockholders’ equity |
451,049 | 416,491 | 420,818 | |||||||||
Accumulated other comprehensive income
(loss), net of tax |
(16,229 | ) | (9,674 | ) | 4,130 | |||||||
| 434,820 | 406,817 | 424,948 | ||||||||||
TOTAL |
$ | 6,421,786 | $ | 6,157,393 | $ | 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 September 30, |
Nine months ended September 30, |
|||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
Assets: |
||||||||||||||||
Cash and due from banks |
$ | 100,408 | $ | 118,612 | $ | 102,942 | $ | 121,713 | ||||||||
Investment securities available-for-sale |
2,433,409 | 2,315,265 | 2,456,734 | 2,409,872 | ||||||||||||
Investment securities held-to-maturity |
7,206 | — | 6,930 | — | ||||||||||||
Federal funds sold and Interest-bearing balances
due from depository institutions |
752 | 5,377 | 1,334 | 2,010 | ||||||||||||
Investment in stock of Federal Home Loan Bank (FHLB) |
91,729 | 81,410 | 88,508 | 81,041 | ||||||||||||
Loans and lease finance receivables |
3,556,724 | 3,327,462 | 3,459,916 | 3,178,242 | ||||||||||||
Less allowance for credit losses |
(38,634 | ) | (30,264 | ) | (36,067 | ) | (28,623 | ) | ||||||||
Net loans and lease finance receivables |
3,518,090 | 3,297,198 | 3,423,849 | 3,149,619 | ||||||||||||
Total earning assets |
6,051,186 | 5,699,250 | 5,977,355 | 5,642,542 | ||||||||||||
Premises and equipment, net |
44,783 | 47,189 | 45,907 | 46,232 | ||||||||||||
Intangibles |
12,267 | 8,572 | 13,160 | 9,166 | ||||||||||||
Goodwill |
55,097 | 60,456 | 55,108 | 41,370 | ||||||||||||
Cash value of life insurance |
106,016 | 101,686 | 104,911 | 100,932 | ||||||||||||
Other assets |
74,864 | 93,685 | 71,243 | 89,257 | ||||||||||||
TOTAL |
$ | 6,444,621 | $ | 6,129,450 | $ | 6,370,626 | $ | 6,051,212 | ||||||||
Liabilities and Stockholders’ Equity |
||||||||||||||||
Liabilities: |
||||||||||||||||
Deposits: |
||||||||||||||||
Noninterest-bearing |
$ | 1,299,630 | $ | 1,316,035 | $ | 1,257,843 | $ | 1,289,429 | ||||||||
Interest-bearing |
1,936,102 | 2,200,779 | 1,994,533 | 2,145,299 | ||||||||||||
Total Deposits |
3,235,732 | 3,516,814 | 3,252,376 | 3,434,728 | ||||||||||||
Other borrowings |
2,600,493 | 2,049,765 | 2,490,488 | 2,063,380 | ||||||||||||
Junior Subordinated Debentures |
115,055 | 115,859 | 115,055 | 110,898 | ||||||||||||
Other liabilities |
46,620 | 47,069 | 63,389 | 43,210 | ||||||||||||
Total Liabilities |
5,997,900 | 5,729,507 | 5,921,308 | 5,652,216 | ||||||||||||
Stockholders’ equity: |
||||||||||||||||
Stockholders’ equity |
452,553 | 424,765 | 442,378 | 414,340 | ||||||||||||
Accumulated other comprehensive income
(loss), net of tax |
(5,832 | ) | (24,822 | ) | 6,940 | (15,344 | ) | |||||||||
| 446,721 | 399,943 | 449,318 | 398,996 | |||||||||||||
TOTAL |
$ | 6,444,621 | $ | 6,129,450 | $ | 6,370,626 | $ | 6,051,212 | ||||||||
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 Nine Months | |||||||||||||||
| Ended September 30, | Ended September 30, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
Interest Income: |
||||||||||||||||
Loans and leases, including fees |
$ | 52,954 | $ | 58,677 | $ | 159,211 | $ | 165,117 | ||||||||
Investment securities: |
||||||||||||||||
Taxable |
22,142 | 20,591 | 65,448 | 65,401 | ||||||||||||
Tax-advantaged |
7,036 | 7,493 | 21,336 | 22,029 | ||||||||||||
Total investment income |
29,178 | 28,084 | 86,784 | 87,430 | ||||||||||||
Dividends from FHLB Stock |
1,367 | 1,047 | 3,666 | 3,152 | ||||||||||||
Federal funds sold & Interest-bearing CDs with other
institutions |
8 | 72 | 34 | 92 | ||||||||||||
Total interest income |
83,507 | 87,880 | 249,695 | 255,791 | ||||||||||||
Interest Expense: |
||||||||||||||||
Deposits |
7,417 | 18,445 | 28,233 | 53,531 | ||||||||||||
Borrowings and junior subordinated debentures |
27,078 | 27,727 | 79,838 | 82,505 | ||||||||||||
Total interest expense |
34,495 | 46,172 | 108,071 | 136,036 | ||||||||||||
Net interest income before provision for credit losses |
49,012 | 41,708 | 141,624 | 119,755 | ||||||||||||
Provision for credit losses |
4,000 | — | 8,700 | — | ||||||||||||
Net interest income after
provision for credit losses |
45,012 | 41,708 | 132,924 | 119,755 | ||||||||||||
Other Operating Income: |
||||||||||||||||
Service charges on deposit accounts |
3,829 | 3,340 | 11,381 | 9,827 | ||||||||||||
Trust and investment services |
2,019 | 1,657 | 5,906 | 5,355 | ||||||||||||
Other |
2,525 | 2,866 | 7,929 | 8,175 | ||||||||||||
Total other operating income |
8,373 | 7,863 | 25,216 | 23,357 | ||||||||||||
Other operating expenses: |
||||||||||||||||
Salaries and employee benefits |
15,943 | 13,794 | 46,987 | 41,449 | ||||||||||||
Occupancy |
2,923 | 2,862 | 8,874 | 7,612 | ||||||||||||
Equipment |
1,888 | 1,743 | 5,556 | 5,293 | ||||||||||||
Professional services |
1,600 | 1,844 | 5,015 | 4,535 | ||||||||||||
Amortization of intangible assets |
898 | 1,086 | 2,694 | 2,263 | ||||||||||||
Provision for unfunded commitments |
(100 | ) | 741 | 1,150 | 741 | |||||||||||
Other |
5,905 | 5,148 | 17,558 | 16,070 | ||||||||||||
Total other operating expenses |
29,057 | 27,218 | 87,834 | 77,963 | ||||||||||||
Earnings before income taxes |
24,328 | 22,353 | 70,306 | 65,149 | ||||||||||||
Income taxes |
6,868 | 6,232 | 19,510 | 17,932 | ||||||||||||
Net earnings |
$ | 17,460 | $ | 16,121 | $ | 50,796 | $ | 47,217 | ||||||||
Basic earnings per common share |
$ | 0.21 | $ | 0.19 | $ | 0.61 | $ | 0.56 | ||||||||
Diluted earnings per common share |
$ | 0.21 | $ | 0.19 | $ | 0.61 | $ | 0.56 | ||||||||
Cash dividends per common share |
$ | 0.085 | $ | 0.085 | $ | 0.255 | $ | 0.255 | ||||||||
CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
| Three months ended September 30, |
Nine months ended September 30, |
|||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
Interest income — (Tax-Effected) (te) |
$ | 86,368 | $ | 90,400 | $ | 258,356 | $ | 263,196 | ||||||||
Interest Expense |
34,495 | 46,172 | 108,071 | 136,036 | ||||||||||||
Net Interest income — (te) |
$ | 51,873 | $ | 44,228 | $ | 150,285 | $ | 127,160 | ||||||||
Return on average assets |
1.08 | % | 1.04 | % | 1.07 | % | 1.04 | % | ||||||||
Return on average equity |
15.55 | % | 15.99 | % | 15.10 | % | 15.82 | % | ||||||||
Efficiency ratio |
54.43 | % | 54.91 | % | 55.54 | % | 54.48 | % | ||||||||
Net interest margin (te) |
3.43 | % | 3.11 | % | 3.37 | % | 3.02 | % | ||||||||
Weighted average shares outstanding |
||||||||||||||||
Basic |
83,148,006 | 84,373,484 | 83,105,726 | 83,715,950 | ||||||||||||
Diluted |
83,372,848 | 84,730,295 | 83,328,918 | 84,373,142 | ||||||||||||
Dividends declared |
$ | 7,088 | $ | 7,076 | $ | 21,239 | $ | 21,410 | ||||||||
Dividend payout ratio |
40.60 | % | 43.89 | % | 41.81 | % | 45.34 | % | ||||||||
Number of shares outstanding-EOP |
83,270,263 | 83,353,404 | ||||||||||||||
Book value per share |
$ | 5.22 | $ | 4.88 | ||||||||||||
| September 30, | ||||||||
| 2008 | 2007 | |||||||
Non-performing Assets (dollar amount in thousands): |
||||||||
Non-accrual loans |
$ | 16,637 | $ | 3,474 | ||||
Loans past due 90 days or more
and still accruing interest |
— | — | ||||||
Other real estate owned (OREO), net |
1,927 | — | ||||||
Total non-performing assets |
$ | 18,564 | $ | 3,474 | ||||
Percentage of non-performing assets
to total loans outstanding and OREO |
0.52 | % | 0.10 | % | ||||
Percentage of non-performing
assets to total assets |
0.29 | % | 0.06 | % | ||||
Allowance for loan losses to
non-performing assets |
215.78 | % | 875.88 | % | ||||
Net Charge-off (Recovered) to Average loans |
0.05 | % | 0.00 | % | ||||
Allowance for Credit Losses: |
||||||||
Beginning Balance |
$ | 33,049 | $ | 27,737 | ||||
Total Loans Charged-Off |
(1,992 | ) | (345 | ) | ||||
Total Loans Recovered |
301 | 365 | ||||||
Net Loans Recovered |
(1,691 | ) | 20 | |||||
Acqusition of First Coastal Bank |
0 | 2,671 | ||||||
Provision Charged to Operating Expense |
8,700 | — | ||||||
Allowance for Credit Losses at End of period |
$ | 40,058 | $ | 30,428 | ||||
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, |
$ | 15.01 | $ | 7.65 | $ | 12.71 | $ | 9.51 | $ | 14.24 | $ | 12.83 | ||||||||||||
December 31, |
$ | 11.97 | $ | 9.98 | $ | 14.13 | $ | 12.83 | ||||||||||||||||
Quarterly Consolidated Statements of Earnings
| 3Q | 2Q | 1Q | 4Q | 3Q | ||||||||||||||||
| 2008 | 2008 | 2008 | 2007 | 2007 | ||||||||||||||||
Interest income |
||||||||||||||||||||
Loans, including fees |
$ | 52,954 | $ | 52,211 | $ | 54,046 | $ | 56,692 | $ | 58,677 | ||||||||||
Investment securities and federal funds sold |
30,553 | 30,758 | 29,173 | 28,794 | 29,203 | |||||||||||||||
| 83,507 | 82,969 | 83,219 | 85,486 | 87,880 | ||||||||||||||||
Interest expense |
||||||||||||||||||||
Deposits |
7,417 | 8,537 | 12,278 | 15,766 | 18,445 | |||||||||||||||
Other borrowings |
27,078 | 25,949 | 26,811 | 28,333 | 27,727 | |||||||||||||||
| 34,495 | 34,486 | 39,089 | 44,099 | 46,172 | ||||||||||||||||
Net interest income before
provision for credit losses |
49,012 | 48,483 | 44,130 | 41,387 | 41,708 | |||||||||||||||
Provision for credit losses |
4,000 | 3,000 | 1,700 | 4,000 | — | |||||||||||||||
Net interest income after
provision for credit losses |
45,012 | 45,483 | 42,430 | 37,387 | 41,708 | |||||||||||||||
Non-interest income |
8,373 | 8,702 | 8,140 | 7,968 | 7,863 | |||||||||||||||
Non-interest expenses |
29,057 | 30,378 | 28,399 | 27,441 | 27,218 | |||||||||||||||
Earnings before income taxes |
24,328 | 23,807 | 22,171 | 17,914 | 22,353 | |||||||||||||||
Income taxes |
6,868 | 6,655 | 5,987 | 4,547 | 6,232 | |||||||||||||||
Net earnings |
$ | 17,460 | $ | 17,152 | $ | 16,184 | $ | 13,367 | $ | 16,121 | ||||||||||
Basic earning per common share |
$ | 0.21 | $ | 0.21 | $ | 0.19 | $ | 0.16 | $ | 0.19 | ||||||||||
Diluted earnings per common share |
$ | 0.21 | $ | 0.21 | $ | 0.19 | $ | 0.16 | $ | 0.19 | ||||||||||
Cash dividends per common share |
$ | 0.085 | $ | 0.085 | $ | 0.085 | $ | 0.085 | $ | 0.085 | ||||||||||
Dividends Declared |
$ | 7,088 | $ | 7,058 | $ | 7,093 | $ | 7,069 | $ | 7,076 | ||||||||||
CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(in thousands)
(unaudited)
SELECTED FINANCIAL HIGHLIGHTS
(in thousands)
(unaudited)
Distribution of Loan Portfolio
| 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | 9/30/2007 | ||||||||||||||||
Commercial and Industrial |
$ | 356,973 | $ | 424,515 | $ | 386,274 | $ | 365,214 | $ | 345,697 | ||||||||||
Real Estate: |
||||||||||||||||||||
Construction |
359,859 | 333,303 | 318,549 | 308,354 | 307,506 | |||||||||||||||
Commercial Real Estate |
1,932,778 | 1,851,123 | 1,822,610 | 1,805,946 | 1,775,812 | |||||||||||||||
SFR Mortgage |
341,389 | 351,120 | 356,415 | 365,849 | 363,765 | |||||||||||||||
Consumer |
61,710 | 57,380 | 57,554 | 58,999 | 62,979 | |||||||||||||||
Municipal lease finance receivables |
173,600 | 163,459 | 153,270 | 156,646 | 143,399 | |||||||||||||||
Auto and equipment leases |
47,753 | 53,121 | 54,795 | 58,505 | 58,958 | |||||||||||||||
Dairy and Livestock |
331,333 | 293,133 | 254,156 | 387,488 | 265,806 | |||||||||||||||
Gross Loans |
3,605,395 | 3,527,154 | 3,403,623 | 3,507,001 | 3,323,922 | |||||||||||||||
Less: |
||||||||||||||||||||
Deferred net loan fees |
(10,058 | ) | (10,911 | ) | (11,431 | ) | (11,857 | ) | (12,173 | ) | ||||||||||
Allowance for credit losses |
(40,058 | ) | (37,310 | ) | (34,711 | ) | (33,049 | ) | (30,428 | ) | ||||||||||
Net Loans |
$ | 3,555,279 | $ | 3,478,933 | $ | 3,357,481 | $ | 3,462,095 | $ | 3,281,321 | ||||||||||
CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(in thousands)
(unaudited)
SELECTED FINANCIAL HIGHLIGHTS
(in thousands)
(unaudited)
Non-Performing Assets & Delinquency Trends
| September 30, | June 30, | March 31, | December 31, | |||||||||||||
| 2008 | 2008 | 2008 | 2007 | |||||||||||||
Non-Performing Loans |
||||||||||||||||
Residential Construction and Residential Land |
$ | 8,020 | $ | 9,802 | $ | 1,535 | $ | 1,137 | ||||||||
Residential Mortgage |
2,062 | 1,672 | 1,153 | 298 | ||||||||||||
Commercial |
6,243 | 551 | 19 | — | ||||||||||||
Consumer |
312 | 312 | — | — | ||||||||||||
Total |
$ | 16,637 | $ | 12,337 | $ | 2,707 | $ | 1,435 | ||||||||
% of Total Loans |
0.46 | % | 0.35 | % | 0.08 | % | 0.04 | % | ||||||||
Past Due 30+ Days |
||||||||||||||||
Residential Construction and Residential Land |
$ | — | $ | — | $ | 768 | $ | — | ||||||||
Commercial Construction |
2,500 | — | — | — | ||||||||||||
Residential Mortgage |
481 | 483 | 1,180 | 460 | ||||||||||||
Commercial |
1,871 | 483 | 15,709 | 1,713 | ||||||||||||
Consumer |
55 | — | 533 | 26 | ||||||||||||
Total |
$ | 4,907 | $ | 966 | $ | 18,190 | $ | 2,199 | ||||||||
% of Total Loans |
0.14 | % | 0.03 | % | 0.53 | % | 0.06 | % | ||||||||
OREO |
||||||||||||||||
Residential Construction |
$ | 1,612 | $ | 1,137 | $ | 1,137 | $ | — | ||||||||
Residential Mortgage |
$ | 315 | — | — | — | |||||||||||
Total |
$ | 1,927 | $ | 1,137 | $ | 1,137 | $ | — | ||||||||
Total Non-Performing, Past Due & OREO |
$ | 23,471 | $ | 14,440 | $ | 22,034 | $ | 3,634 | ||||||||
% of Total Loans |
0.65 | % | 0.41 | % | 0.65 | % | 0.10 | % | ||||||||