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): April 16, 2009
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)
(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 April 16, 2009, CVB Financial Corp. issued a press release setting forth its first quarter
ending March 31, 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.
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: April 17, 2009 | 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 April 16, 2009 |
4
Exhibit 99.1
Press Release |
||||||||
For Immediate Release |
||||||||
| Contact: | Christopher D. Myers | |||||||
| President and CEO | ||||||||
| (909) 980-4030 |
CVB Financial Corp. Reports First Quarter Earnings
Ontario, CA, April 16, 2009-CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business
Bank (“the Company”), announced the results for the first quarter of 2009.
Net Income
CVB Financial Corp. reported net income of $13.2 million for the first quarter ending March 31,
2009. This represents a decrease of $3.0 million, or 18.64%, when compared with net earnings of
$16.2 million for the first quarter of 2008. Diluted earnings per common share were $0.13 for the
first quarter of 2009. This was down $0.06, or 31.58%, from diluted earnings per common share of
$0.19 for the same period last year. Of the $0.06 decrease, $0.03 is due to the dividends and
amortization of the discount on our preferred stock.
Net income for the first quarter of 2009 produced a return on beginning common equity of 10.82%, a
return on average common equity of 10.64% and a return on average assets of 0.81%. Return on
beginning equity was 8.68% and return on average equity was 8.56%. The efficiency ratio for the
first quarter was 63.24%; excluding the provision for credit losses and the gain on sale of
securities, the efficiency ratio was 50.06%. Operating expenses as a percentage of average assets
were 1.93%.
Net income for the first quarter of 2009 of $13.2 million, increased by $891,000 or 7.26%, compared
to net income of $12.3 million for the fourth quarter of 2008. Diluted earnings per common share
of $0.13 for the first quarter of 2009, decreased by $0.01 or 8.86%, from diluted earnings per
common share of $0.14 for the fourth quarter of 2008, due to the full impact of the preferred stock
dividend in the first quarter of 2009.
The Company made provisions for credit losses totaling $22.0 million during the first quarter
ending March 31, 2009. This compares with provisions of $1.7 million for the first quarter of
2008. The Company’s non-performing assets increased from $24.2
million as of December 31, 2008 to $56.7 million as of March 31, 2009. This represents 0.36% of
total assets as of December 31, 2008 and 0.88% of total assets as of March 31, 2009.
Net Interest Income and Net Interest Margin
The Company had the highest quarterly net interest income in the history of the Company during the
first quarter of 2009. Net interest income, before provision for credit losses, totaled $55.3
million for the first quarter of 2009. This represents an increase of $11.2 million, or 25.29%,
over net interest income of $44.1 million for the same period in 2008. The increase resulted from a
$15.4 million decrease in interest expense which overshadowed a $4.2 million decrease in interest
income. 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 paid on deposits and borrowed funds, coupled with a decrease
in average borrowed funds, which was partially offset by the increase in average interest-bearing
deposits.
Net interest margin (tax equivalent) increased from 3.25% for the first quarter of 2008 to 3.75%
for the first quarter of 2009. Total average earning asset yields decreased from 5.90% for the
first quarter of 2008 to 5.26% for the first quarter of 2009. The cost of funds decreased from
3.45% for the first quarter of 2008 to 2.07% for the first 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.
Balance Sheet
The Company reported total assets of $6.42 billion at March 31, 2009. This represented an increase
of $41.3 million, or 0.65%, over total assets of $6.37 billion at March 31, 2008. Earning assets
totaling $6.01 billion were up $14.5 million, or 0.24%, when compared with earning assets of $6.00
billion at March 31, 2008. Total deposits and customer repos were $4.19 billion at March 31, 2009.
This represents an increase of $562.1 million, or 15.50%, when compared with total deposits and
customer repos of $3.63 billion at March 31, 2008. Loans and leases totaled $3.66 billion at March
31, 2009. This represents an increase of $266.7 million, or 7.86%, when compared with loans and
leases of $3.39 billion at March 31, 2008.
Total assets of $6.42 billion at March 31, 2009 decreased $233.6 million, or 3.51% from total
assets of $6.65 billion at December 31, 2008. This was primarily due to the decrease in investment
securities of $174.7 million. Total earning assets of $6.01 billion decreased $264.5 million, or
4.21%, from total earning assets of $6.28 billion at December 31, 2008. Loans and leases totaling
$3.66 billion at March 31, 2009 decreased $78.0 million, or 2.09% from loans and leases of $3.74
billion at December 31, 2008. This was primarily due to seasonal trends in loan balances. Total
deposits and customer repos of $4.19 billion at March 31, 2009 increased by $323.3 million, or
8.36%, when compared to total deposits and customer repos of $3.87 billion at December 31, 2008.
- 2 -
Investment Securities
Investment securities totaled $2.33 billion at March 31, 2009. This represents a decrease of $228.3
million, or 8.94%, when compared with $2.55 billion in investment securities at March 31, 2008. It
also represents a decrease of $174.7 million, or 6.99%, when compared with $2.50 billion in
investment securities at December 31, 2008. During the first quarter of 2009, we sold certain
securities with relatively short maturities and recognized a gain on sale of securities of $8.9
million. 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 mortgage-backed issues, approximately $47 million, are performing well. Ninety-six
percent of our municipal portfolio contains securities which have an underlying rating of
investment grade.
Borrowings
Our borrowings decreased by $579.2 million, or 33.33%, from December 31, 2008. As a result of our increase in deposits and customer repurchases of $323.3 million and the sale of approximately $177.1 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 quarter of 2009.
Our borrowings decreased by $579.2 million, or 33.33%, from December 31, 2008. As a result of our increase in deposits and customer repurchases of $323.3 million and the sale of approximately $177.1 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 quarter of 2009.
CitizensTrust
CitizensTrust has approximately $1.5 billion in assets under administration, including $741.6
million in assets under management at March 31, 2009. This compares with $2.0 billion in assets
under administration, including $804.7 million in assets under management at March 31, 2008.
CitizensTrust provides trust, investment and brokerage related services, as well as financial,
estate and business succession planning. Income from CitizensTrust was $1.7 million in the current
quarter, down $252,000 from $1.9 million for the first quarter of 2008. The decrease was primarily
due to the decline in market value of the assets under administration.
Loan and Lease Quality
The overall credit quality of the loan portfolio remains strong, but we are experiencing higher
levels of problem credits. The allowance for credit losses increased from $34.7 million as of March
31, 2008 and $54.0 million as of December 31, 2008 to $65.8 million as of March 31, 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 $22.0 million during the first quarter of
2009. During the first quarter of 2009, we had loan charge-offs totaling $10.3 million and
recoveries on previously charged-off loans of $99,000. This resulted in net charge-offs of $10.2
million. By comparison, during the first quarter of 2008, the Company had net charge-offs of
$38,000 and a $1.7 million contribution to the provision for credit losses. The allowance for
credit losses was 1.80% and 1.02% of total loans and leases outstanding as of March 31, 2009 and
2008, respectively. “We continue to make greater provisions for credit losses in order to build
our reserves. It is important for us to be proactive and fiscally prepared for any further
deterioration in economic conditions,” said Chris Myers, President & Chief Executive Officer.
- 3 -
We had $48.0 million in non-performing loans at March 31, 2009, or 1.31% of total loans. This
compares to $17.7 million in non-performing loans at December 31, 2008 and $2.7 million at March
31, 2008. Non-performing loans consist of $20.9 million in residential construction and land
loans, $22.1 million in commercial construction loans, $2.2 million in single-family mortgage
loans, $1.7 million in commercial real estate loans, $0.8 million in other commercial loans and
$0.3 million in consumer loans. Of our total loan portfolio, approximately 22% is based in the
Inland Empire, one of the hardest hit areas of the United States during this recession. While our
non-performing loans continue to remain in a fair position at 1.31% of total loans, we are mindful
of potential losses. “We do not anticipate that potential losses will prevent us from meeting our
earnings projections for 2009. We continue to monitor all of our loans closely and work
proactively with our borrowers,” said Myers. In addition, Citizens Business Bank recently
completed its annual regulatory examination.
The $48.0 million in non-performing loans consist of five construction loans to one developer
totaling $34.8 million with a specific reserve of $5.1 million. The remaining $13.2 million consist
primarily of one commercial construction loan with a balance of $7.1 million, five residential
mortgage loans totaling $2.2 million, one residential construction loan of $1.1 million, and one
commercial real estate loan of $1.2 million. In terms of loan concentrations to any single
borrower, the Bank has only one borrowing relationship with over $50 million in total loan
commitments. The aggregate borrowing relationship is below our $87 million house lending limit,
which is 50% of our legal lending limit. We have multiple forms of real estate collateral
supporting the subject credit facility, including both income and non-income producing properties.
All loans related to this relationship are performing and paid current.
Other Real Estate Owned was $8.7 million at March 31, 2009. This was an increase of $2.1 million
from December 31, 2008. This was primarily due to the transfer of $6.3 million from non-performing
loans offset by $3.4 million in sales of existing OREO properties and $0.8 million in OREO
write-downs during the first quarter of 2009. We now have nine properties in OREO.
At March 31, 2009, we had loans delinquent 30 to 89 days of $13.9 million. This compares to
delinquent loans of $5.2 million at December, 31, 2008, and $18.2 million at March 31, 2008. As a
percentage of total loans, delinquencies, excluding non-accruals, were 0.38% at March 31, 2009,
0.14% at December 31, 2008 and 0.53% at March 31, 2008.
Our construction loan portfolio totaled $333.2 million as of March 31, 2009 down from $351.5
million as of December 31, 2008. This represents 9.09% of our total loans outstanding at March 31,
2009. Of the $333.2 million, $98.6 million is for residential construction and residential land
loans. This represents 29.6% of the construction loans
- 4 -
outstanding or 2.69% of our total loan portfolio. Of note, 36.04% 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 43 business financial centers and 5 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.
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, 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.
###
- 5 -
CVB FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(unaudited)
dollars in thousands
CONSOLIDATED BALANCE SHEET
(unaudited)
dollars in thousands
| March 31, | December 31, | |||||||||||
| 2009 | 2008 | 2008 | ||||||||||
Assets: |
||||||||||||
Cash and due from banks |
$ | 101,214 | $ | 110,102 | $ | 95,297 | ||||||
Investment Securities available-for-sale |
2,319,051 | 2,546,367 | 2,493,476 | |||||||||
Investment Securities held-to-maturity |
6,607 | 7,638 | 6,867 | |||||||||
Federal funds sold and Interest-bearing balances due from depository institutions |
285 | 475 | 285 | |||||||||
Investment in stock of Federal Home Loan Bank (FHLB) |
93,240 | 85,852 | 93,240 | |||||||||
Loans and lease finance receivables |
3,658,859 | 3,392,192 | 3,736,838 | |||||||||
Less allowance for credit losses |
(65,755 | ) | (34,711 | ) | (53,960 | ) | ||||||
Net loans and lease finance receivables |
3,593,104 | 3,357,481 | 3,682,878 | |||||||||
Total earning assets |
6,012,287 | 5,997,813 | 6,276,746 | |||||||||
Premises and equipment, net |
44,015 | 46,585 | 44,420 | |||||||||
Intangibles |
10,231 | 13,713 | 11,020 | |||||||||
Goodwill |
55,097 | 55,097 | 55,097 | |||||||||
Cash value of life insurance |
107,134 | 104,499 | 106,366 | |||||||||
Other assets |
86,111 | 46,993 | 60,705 | |||||||||
TOTAL |
$ | 6,416,089 | $ | 6,374,802 | $ | 6,649,651 | ||||||
Liabilities and Stockholders’ Equity |
||||||||||||
Liabilities: |
||||||||||||
Deposits: |
||||||||||||
Demand Deposits (noninterest-bearing) |
$ | 1,396,087 | $ | 1,218,660 | $ | 1,334,248 | ||||||
Investment Checking |
324,187 | 351,692 | 324,907 | |||||||||
Savings/MMDA |
910,571 | 952,601 | 818,872 | |||||||||
Time Deposits |
1,154,420 | 737,715 | 1,030,129 | |||||||||
Total Deposits |
3,785,265 | 3,260,668 | 3,508,156 | |||||||||
Demand Note to U.S. Treasury |
5,737 | 3,622 | 5,373 | |||||||||
Customer Repurchase Agreements |
404,016 | 366,502 | 357,813 | |||||||||
Repurchase Agreements |
250,000 | 250,000 | 250,000 | |||||||||
Borrowings |
1,158,500 | 1,745,851 | 1,737,660 | |||||||||
Junior Subordinated Debentures |
115,055 | 115,055 | 115,055 | |||||||||
Other liabilities |
71,155 | 181,315 | 60,702 | |||||||||
Total Liabilities |
5,789,728 | 5,923,013 | 6,034,759 | |||||||||
Stockholders’ equity: |
||||||||||||
Stockholders’ equity |
591,355 | 429,017 | 586,161 | |||||||||
Accumulated other comprehensive income
(loss), net of tax |
35,006 | 22,772 | 28,731 | |||||||||
| 626,361 | 451,789 | 614,892 | ||||||||||
TOTAL |
$ | 6,416,089 | $ | 6,374,802 | $ | 6,649,651 | ||||||
- 6 -
CVB FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCE SHEET
(unaudited)
dollars in thousands
CONSOLIDATED AVERAGE BALANCE SHEET
(unaudited)
dollars in thousands
| Three months ended March 31, | ||||||||
| 2009 | 2008 | |||||||
Assets: |
||||||||
Cash and due from banks |
$ | 95,339 | $ | 107,878 | ||||
Investment securities available-for-sale |
2,496,590 | 2,386,918 | ||||||
Investment securities held-to-maturity |
6,692 | 6,117 | ||||||
Federal funds sold and Interest-bearing balances
due from depository institutions |
285 | 1,296 | ||||||
Investment in stock of Federal Home Loan Bank (FHLB) |
93,240 | 84,719 | ||||||
Loans and lease finance receivables |
3,680,258 | 3,383,772 | ||||||
Less allowance for credit losses |
(60,323 | ) | (33,906 | ) | ||||
Net loans and lease finance receivables |
3,619,935 | 3,349,866 | ||||||
Total earning assets |
6,216,742 | 5,828,916 | ||||||
Pemises and equipment, net |
44,542 | 46,773 | ||||||
Intangibles |
10,519 | 14,061 | ||||||
Goodwill |
55,097 | 55,131 | ||||||
Cash value of life insurance |
106,708 | 103,787 | ||||||
Other assets |
81,741 | 69,967 | ||||||
TOTAL |
$ | 6,610,688 | $ | 6,226,513 | ||||
Liabilities and Stockholders’ Equity |
||||||||
Liabilities: |
||||||||
Deposits: |
||||||||
Noninterest-bearing |
$ | 1,342,229 | $ | 1,225,327 | ||||
Interest-bearing |
2,260,850 | 2,050,628 | ||||||
Total Deposits |
3,603,079 | 3,275,955 | ||||||
Other borrowings |
2,209,679 | 2,339,160 | ||||||
Junior Subordinated Debentures |
115,055 | 115,055 | ||||||
Other liabilities |
59,156 | 59,743 | ||||||
Total Liabilities |
5,986,969 | 5,789,913 | ||||||
Stockholders’ equity: |
||||||||
Stockholders’ equity |
594,919 | 432,265 | ||||||
Accumulated other comprehensive income
(loss), net of tax |
28,800 | 4,335 | ||||||
| 623,719 | 436,600 | |||||||
TOTAL |
$ | 6,610,688 | $ | 6,226,513 | ||||
- 7 -
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 | ||||||||
| Ended March 31, | ||||||||
| 2009 | 2008 | |||||||
Interest Income: |
||||||||
Loans and leases, including fees |
$ | 49,526 | $ | 54,046 | ||||
Investment securities: |
||||||||
Taxable |
22,436 | 20,877 | ||||||
Tax-advantaged |
6,996 | 7,188 | ||||||
Total investment income |
29,432 | 28,065 | ||||||
Dividends from FHLB Stock |
— | 1,093 | ||||||
Federal funds sold & Interest-bearing CDs with other
institutions |
4 | 15 | ||||||
Total interest income |
78,962 | 83,219 | ||||||
Interest Expense: |
||||||||
Deposits |
6,590 | 12,278 | ||||||
Borrowings and junior subordinated debentures |
17,080 | 26,811 | ||||||
Total interest expense |
23,670 | 39,089 | ||||||
Net interest income before provision for credit losses |
55,292 | 44,130 | ||||||
Provision for credit losses |
22,000 | 1,700 | ||||||
Net interest income after
provision for credit losses |
33,292 | 42,430 | ||||||
Other Operating Income: |
||||||||
Service charges on deposit accounts |
3,717 | 3,745 | ||||||
Trust and investment services |
1,661 | 1,913 | ||||||
Gain on sale of investment securities |
8,929 | — | ||||||
Other |
2,050 | 2,482 | ||||||
Total other operating income |
16,357 | 8,140 | ||||||
Other operating expenses: |
||||||||
Salaries and employee benefits |
15,819 | 15,543 | ||||||
Occupancy |
2,851 | 2,871 | ||||||
Equipment |
1,597 | 1,649 | ||||||
Professional services |
1,695 | 1,541 | ||||||
Amortization of intangible assets |
789 | 898 | ||||||
Provision for unfunded commitments |
900 | 250 | ||||||
OREO Expense |
1,031 | — | ||||||
Other |
6,715 | 5,647 | ||||||
Total other operating expenses |
31,397 | 28,399 | ||||||
Earnings before income taxes |
18,252 | 22,171 | ||||||
Income taxes |
5,084 | 5,987 | ||||||
Net earnings |
$ | 13,168 | $ | 16,184 | ||||
Basic earnings per common share |
$ | 0.13 | $ | 0.19 | ||||
Diluted earnings per common share |
$ | 0.13 | $ | 0.19 | ||||
Cash dividends per common share |
$ | 0.085 | $ | 0.085 | ||||
- 8 -
CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
| Three months ended March 31, | ||||||||
| 2009 | 2008 | |||||||
Interest income — (Tax-Effected) (te) |
$ | 81,808 | $ | 86,133 | ||||
Interest Expense |
23,670 | 39,089 | ||||||
Net Interest income — (te) |
$ | 58,138 | $ | 47,044 | ||||
Return on average assets |
0.81 | % | 1.05 | % | ||||
Return on average equity |
8.56 | % | 14.91 | % | ||||
Efficiency ratio |
63.24 | % | 56.16 | % | ||||
Net interest margin (te) |
3.75 | % | 3.25 | % | ||||
Weighted average shares outstanding |
||||||||
Basic |
83,174,373 | 83,151,328 | ||||||
Diluted |
83,303,201 | 83,521,594 | ||||||
Dividends declared |
$ | 7,083 | $ | 7,093 | ||||
Dividend payout ratio |
53.79 | % | 43.83 | % | ||||
Number of shares outstanding-EOP |
83,326,511 | 83,095,678 | ||||||
Book value per share |
$ | 6.05 | $ | 5.44 | ||||
| March 31, | ||||||||
| 2009 | 2008 | |||||||
Non-performing Assets (dollar amount in thousands): |
||||||||
Non-accrual loans |
$ | 48,037 | $ | 2,707 | ||||
Loans past due 90 days or more
and still accruing interest |
— | — | ||||||
Other real estate owned (OREO), net |
8,666 | 1,137 | ||||||
Total non-performing assets |
$ | 56,703 | $ | 3,844 | ||||
Percentage of non-performing assets
to total loans outstanding and OREO |
1.55 | % | 0.11 | % | ||||
Percentage of non-performing
assets to total assets |
0.88 | % | 0.06 | % | ||||
Allowance for loan losses to
non-performing assets |
115.96 | % | 902.99 | % | ||||
Net Charge-off to Average loans |
0.28 | % | 0.00 | % | ||||
Allowance for Credit Losses: |
||||||||
Beginning Balance |
$ | 53,960 | $ | 33,049 | ||||
Total Loans Charged-Off |
(10,304 | ) | (246 | ) | ||||
Total Loans Recovered |
99 | 208 | ||||||
Net Loans Charged-off |
(10,205 | ) | (38 | ) | ||||
Provision Charged to Operating Expense |
22,000 | 1,700 | ||||||
Allowance for Credit Losses at End of period |
$ | 65,755 | $ | 34,711 | ||||
- 9 -
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
| 2009 | 2008 | 2007 | ||||||||||||||||||||||
| Quarter End | High | Low | High | Low | High | Low | ||||||||||||||||||
March 31, |
$ | 11.62 | $ | 5.62 | $ | 11.20 | $ | 8.45 | $ | 13.38 | $ | 11.42 | ||||||||||||
June 30, |
$ | 12.10 | $ | 9.44 | $ | 12.40 | $ | 10.63 | ||||||||||||||||
September 30, |
$ | 15.01 | $ | 7.65 | $ | 12.71 | $ | 9.51 | ||||||||||||||||
December 31, |
$ | 13.89 | $ | 9.29 | $ | 11.97 | $ | 9.98 | ||||||||||||||||
Quarterly Consolidated Statements of Earnings
| 1Q | 4Q | 3Q | 2Q | 1Q | ||||||||||||||||
| 2009 | 2008 | 2008 | 2008 | 2008 | ||||||||||||||||
Interest income |
||||||||||||||||||||
Loans, including fees |
$ | 49,526 | $ | 53,416 | $ | 52,954 | $ | 52,211 | $ | 54,046 | ||||||||||
Investment securities and federal funds sold |
29,436 | 29,407 | 30,553 | 30,758 | 29,173 | |||||||||||||||
| 78,962 | 82,823 | 83,507 | 82,969 | 83,219 | ||||||||||||||||
Interest expense |
||||||||||||||||||||
Deposits |
6,590 | 7,569 | 7,417 | 8,537 | 12,278 | |||||||||||||||
Other borrowings |
17,080 | 23,200 | 27,078 | 25,949 | 26,811 | |||||||||||||||
| 23,670 | 30,769 | 34,495 | 34,486 | 39,089 | ||||||||||||||||
Net interest income before
provision for credit losses |
55,292 | 52,054 | 49,012 | 48,483 | 44,130 | |||||||||||||||
Provision for credit losses |
22,000 | 17,900 | 4,000 | 3,000 | 1,700 | |||||||||||||||
Net interest income after
provision for credit losses |
33,292 | 34,154 | 45,012 | 45,483 | 42,430 | |||||||||||||||
Non-interest income |
16,357 | 9,242 | 8,373 | 8,702 | 8,140 | |||||||||||||||
Non-interest expenses |
31,397 | 27,954 | 29,057 | 30,378 | 28,399 | |||||||||||||||
Earnings before income taxes |
18,252 | 15,442 | 24,328 | 23,807 | 22,171 | |||||||||||||||
Income taxes |
5,084 | 3,165 | 6,868 | 6,655 | 5,987 | |||||||||||||||
Net earnings |
$ | 13,168 | $ | 12,277 | $ | 17,460 | $ | 17,152 | $ | 16,184 | ||||||||||
Basic earning per common share |
$ | 0.13 | $ | 0.14 | $ | 0.21 | $ | 0.21 | $ | 0.19 | ||||||||||
Diluted earnings per common share |
$ | 0.13 | $ | 0.14 | $ | 0.21 | $ | 0.21 | $ | 0.19 | ||||||||||
Cash dividends per common share |
$ | 0.085 | $ | 0.085 | $ | 0.085 | $ | 0.085 | $ | 0.085 | ||||||||||
Dividends Declared |
$ | 7,083 | $ | 7,078 | $ | 7,088 | $ | 7,058 | $ | 7,093 | ||||||||||
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CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(in thousands)
(unaudited)
SELECTED FINANCIAL HIGHLIGHTS
(in thousands)
(unaudited)
Distribution of Loan Portfolio
| 3/31/2009 | 12/31/2008 | 9/30/2008 | 6/30/2008 | 3/31/2008 | ||||||||||||||||
Commercial and Industrial |
$ | 355,591 | $ | 370,829 | $ | 356,973 | $ | 424,515 | $ | 386,274 | ||||||||||
Real Estate: |
||||||||||||||||||||
Construction |
333,234 | 351,543 | 359,859 | 333,303 | 318,549 | |||||||||||||||
Commercial Real Estate |
1,965,531 | 1,945,706 | 1,932,778 | 1,851,123 | 1,822,610 | |||||||||||||||
SFR Mortgage |
328,145 | 333,931 | 341,389 | 351,120 | 356,415 | |||||||||||||||
Consumer |
69,708 | 66,255 | 61,710 | 57,380 | 57,554 | |||||||||||||||
Municipal lease finance receivables |
169,230 | 172,973 | 173,600 | 163,459 | 153,270 | |||||||||||||||
Auto and equipment leases |
41,708 | 45,465 | 47,753 | 53,121 | 54,795 | |||||||||||||||
Dairy and Livestock |
404,090 | 459,329 | 331,333 | 293,133 | 254,156 | |||||||||||||||
Gross Loans |
3,667,237 | 3,746,031 | 3,605,395 | 3,527,154 | 3,403,623 | |||||||||||||||
Less: |
||||||||||||||||||||
Deferred net loan fees |
(8,378 | ) | (9,193 | ) | (10,058 | ) | (10,911 | ) | (11,431 | ) | ||||||||||
Allowance for credit losses |
(65,755 | ) | (53,960 | ) | (40,058 | ) | (37,310 | ) | (34,711 | ) | ||||||||||
Net Loans |
$ | 3,593,104 | $ | 3,682,878 | $ | 3,555,279 | $ | 3,478,933 | $ | 3,357,481 | ||||||||||
- 11 -
CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(in thousands)
(unaudited)
SELECTED FINANCIAL HIGHLIGHTS
(in thousands)
(unaudited)
Non-Performing Assets & Delinquency Trends
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| 2009 | 2008 | 2008 | 2008 | 2008 | ||||||||||||||||
Non-Performing Loans |
||||||||||||||||||||
Residential Construction and Land |
$ | 20,943 | $ | 7,524 | $ | 8,020 | $ | 9,802 | $ | 1,535 | ||||||||||
Commercial Construction |
22,102 | — | — | — | — | |||||||||||||||
Residential Mortgage |
2,203 | 3,116 | 2,062 | 1,672 | 1,153 | |||||||||||||||
Commercial Real Estate |
1,661 | 4,658 | 4,995 | 337 | — | |||||||||||||||
Commercial and Industrial |
792 | 2,074 | 1,248 | 214 | 19 | |||||||||||||||
Consumer |
336 | 312 | 312 | 312 | — | |||||||||||||||
Total |
$ | 48,037 | $ | 17,684 | $ | 16,637 | $ | 12,337 | $ | 2,707 | ||||||||||
% of Total Loans |
1.31 | % | 0.47 | % | 0.46 | % | 0.35 | % | 0.08 | % | ||||||||||
Past Due 30+ Days |
||||||||||||||||||||
Residential Construction and Land |
$ | — | $ | — | $ | — | $ | — | $ | 768 | ||||||||||
Commercial Construction |
— | — | 2,500 | — | — | |||||||||||||||
Residential Mortgage |
3,814 | 1,931 | 481 | 483 | 1,180 | |||||||||||||||
Commercial Real Estate |
8,341 | 2,402 | 19 | 255 | 13,718 | |||||||||||||||
Commercial and Industrial |
1,720 | 592 | 1,852 | 228 | 1,991 | |||||||||||||||
Consumer |
62 | 231 | 55 | — | 533 | |||||||||||||||
Total |
$ | 13,937 | $ | 5,156 | $ | 4,907 | $ | 966 | $ | 18,190 | ||||||||||
% of Total Loans |
0.38 | % | 0.14 | % | 0.14 | % | 0.03 | % | 0.53 | % | ||||||||||
OREO |
||||||||||||||||||||
Residential Construction and Land |
$ | 2,416 | $ | 6,158 | $ | 1,612 | $ | 1,137 | $ | 1,137 | ||||||||||
Commercial Real Estate |
4,612 | 87 | — | — | — | |||||||||||||||
Commercial and Industrial |
893 | — | — | — | — | |||||||||||||||
Residential Mortgage |
745 | 320 | 315 | — | — | |||||||||||||||
Total |
$ | 8,666 | $ | 6,565 | $ | 1,927 | $ | 1,137 | $ | 1,137 | ||||||||||
Total Non-Performing, Past Due & OREO |
$ | 70,640 | $ | 29,405 | $ | 23,471 | $ | 14,440 | $ | 22,034 | ||||||||||
% of Total Loans |
1.93 | % | 0.78 | % | 0.65 | % | 0.41 | % | 0.65 | % | ||||||||||
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