CVB Financial Corp. Reports First Quarter Earnings.ONTARIO, Calif. -- CVB CVB Convention and Visitors Bureau CVB College Van Bestuur (Dutch: Managing Council) CVB Camper Van Beethoven (band) CVB Common Vision Blox CVB Center for Veterinary Biologics Financial Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CVBF CVBF Central Valley Business Forms CVBF Carrier Battle Force ) and its subsidiary, Citizens Business Bank ("the Company"), announced the results for the first quarter of 2007. Net Income CVB Financial Corp. reported net income of $15.2 million for the first quarter ending March 31, 2007. This represents a decrease of $3.1 million, or 16.78%, when compared with net earnings of $18.2 million for the first quarter of 2006. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.18 for the first quarter of 2007. This was down $0.04, or 18.18%, from diluted earnings per share of $0.22 for the same period last year. These per share amounts have been adjusted to reflect a 10% stock dividend declared in December of 2006. Net income for the first quarter of 2007 produced a return on beginning equity of 15.81%, a return on average equity of 15.39% and a return on average assets of 1.02%. The efficiency ratio for the first quarter was 54.27%, and operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. as a percentage of average assets were 1.74%. Net Interest Income and Net Interest Margin Net interest income totaled $39.8 million for the first quarter of 2007. This represents a decrease of $3.7 million, or 8.60%, from the $43.6 million for the same period of 2006. This decrease resulted from a $12.1 million increase in interest income, offset by a $16.1 million increase in interest expense. The increase in interest income was primarily due to the growth in average earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin and the increase in interest rates. The increase in interest expense was due to the increase in the cost of interest bearing deposits and borrowed funds and the overall increase in interest rates. Net interest margin (tax equivalent) declined from 3.63% for the first quarter of 2006 to 3.03% for the first quarter of 2007. Total average earning asset Earning asset An asset that generates income, e.g., income from rental property. yields increased from 5.84% for the first quarter of 2006 to 6.19% for the first quarter of 2007. The cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. increased from 3.10% for the first quarter of 2006 to 4.15% for the first quarter of 2007. The decline in net interest margin is due to the cost of interest-bearing liabilities rising faster than the increase in yields on earning assets. The credit quality of the loan portfolio continues to be strong. The allowance for credit losses increased from $23.6 million as of March 31, 2006 to $27.6 million as of March 31, 2007. The increase was primarily due to the provision for credit losses of $3.0 million and net recoveries of $1.7 million in 2006. During the first three months of 2007, the Company experienced net charge-offs of $105,000. No additional provision for credit losses was made in the first quarter of 2007. By comparison, during the first three months of 2006, the Company had net recoveries of $130,000, and a provision for credit losses of $250,000. The allowance for credit losses was 0.89% and 0.87% of the total loans and leases outstanding as of March 31, 2007 and 2006, respectively. Balance Sheet The Company reported total assets of $5.99 billion at March 31, 2007. This represented an increase of $465.5 million, or 8.42%, over total assets of $5.53 billion as of March 31, 2006. Earning assets totaled $5.63 billion and were up $459.8 million, or 8.89%, when compared with earning assets of $5.17 billion as of March 31, 2006. Total deposits were $3.39 billion as of March 31, 2007. This represents a decrease of $86.5 million, or 2.49%, when compared with total deposits of $3.48 billion at March 31, 2006. The Company has approximately $1.26 billion, or 37.30%, of its deposits in non-interest bearing demand deposits. Gross loans and leases totaled $3.10 billion at March 31, 2007. This represents an increase of $379.5 million, or 13.97%, when compared with gross loans and leases of $2.72 billion at March 31, 2006. Total assets of $5.99 billion at March 31, 2007 reflect a decrease of $100.8 million, or 1.65%, from total assets of $6.09 billion on December 31, 2006. Earning assets of $5.63 billion were down $69.8 million, or 1.22%, from total earning assets of $5.71 billion at December 31, 2006. The decrease was primarily due to the decrease in the investment portfolio. Total deposits of $3.39 billion at March 31, 2007 represent a decrease of $17.2 million, or 0.50%, when compared with total deposits of $3.41 billion at December 31, 2006. Gross loans and leases of $3.10 billion at March 31, 2007 represent an increase of $26.4 million, or 0.86%, when compared with gross loans and leases of $3.07 billion at December 31, 2006. Investment Securities Investment securities totaled $2.48 billion at March 31, 2007. This represents an increase of $77.7 million, or 3.23%, when compared with $2.41 billion in investment securities at March 31, 2006. It represents a decrease of $98.2 million, or 3.80%, when compared with $2.58 billion in investment securities as of December 31, 2006. The Company is de-leveraging by utilizing the monthly cash flow from investments to pay down borrowings or fund new loans. Financial Advisory Services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal The Financial Advisory Services Group has over $3.3 billion in assets under administration. They provide trust, investment and brokerage related services, as well as financial, estate and business succession planning Management Succession Planning In organizational development, succession planning is the process of identifying and preparing suitable employees through mentoring, training and job rotation, to replace key players — such as the chief executive officer (CEO) — . Loan and Lease Quality CVB Financial Corp reported no non-performing assets as of March 31, 2007 and March 31, 2006. The allowance for loan and lease losses was $27.6 million as of March 31, 2007. This represents 0.89% of gross loans and leases. It compares with an allowance for loan and lease losses of $27.7 million, or 0.90% of gross loans and leases as of December 31, 2006. 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 In·land Empire A region of the northwest United States between the Cascade Range and the Rocky Mountains, comprising eastern Washington, eastern Oregon, northern Idaho, and western Montana. Farming, lumbering, and mining are important to the area. region of Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, . It serves 33 cities with 39 business financial centers in the Inland Empire, Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. County, Orange County and the Central Valley areas of California. Its leasing division, Golden West Financial Services, provides vehicle leasing, equipment leasing and real estate loan services, with offices in Orange and Tulare counties. U.S. Banker Magazine named Citizens Business Bank the "Top Business Bank" in the nation in their January 2007 issue. The Bank was also recognized for having the fifteenth highest return on equity in the nation at 20.88%. For the fourth consecutive year, CVB Financial Corp. received the KBW KBW Kommunistischer Bund Westdeutschlands (Communist Union of West Germany) KBW Keefe, Bruyette and Woods, Inc. (investment firm) KBW Knowledge-Based Warfare Honor Roll award at the Annual Community Bank Investor Conference hosted by Keefe, Bruyette & Woods, Inc. in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of on August 1 - 2, 2006. The Company was also recognized as a SmAll-Star by Sandler O'Neill, and named to the FPK FPK Fast Packet Keying FPK Fallen Peace Keepers (gaming clan) FPK Free Pascal Kit Honor Roll by Fox-Pitt, Kelton. Shares of CVB Financial Corp. common stock are listed on the NASDAQ under the ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors 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 Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. This document contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from the projected. In addition, these forward-looking statements relate to the Company's current expectations regarding future operating results. Such issues and uncertainties include impact of changes in interest rates, a decline in economic conditions and increased competition among financial services providers. For a discussion of other factors that could cause actual results to differ, please see the publicly available Securities and Exchange Commission filings of CVB Financial Corp., including its Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the quarter ended December 31, 2006, and particularly the discussion on risk factors within that document. The Company does not undertake any, 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. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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