CVB Financial Corp. Reports Third 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 third quarter of 2007. Net Income CVB Financial Corp. reported net income of $16.1 million for the third quarter ending September 30, 2007. This represents a decrease of $2.4 million, or 12.60%, when compared with the $18.5 million in net earnings reported for the third 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 $0.19 for the third quarter of 2007. This was down $0.03, or 12.25%, when compared with earnings per share of $0.22 for the third quarter of 2006. These per share amounts have been adjusted to reflect a 10% stock dividend declared in December of 2006. Net income for the third quarter of 2007 produced a return on beginning equity of 16.13%, a return on average equity of 15.92% and a return on average assets of 1.04%. The efficiency ratio for the third quarter was 54.89%, 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 1.76%. Net income for the nine months ending September 30, 2007 was $47.2 million. This represents a decrease of $8.4 million, or 15.20%, when compared with net earnings of $55.6 million for the same period of 2006. Diluted earnings per share were $0.56. This was down $0.09, or 14.63%, from diluted earnings per share of $0.65 for the same period last year. Net income for the nine months ending September 30, 2007 produced a return on beginning equity of 16.20%, a return on average equity of 15.72% and a return on average assets of 1.04%. The efficiency ratio for the nine-month period was 54.51%, and operating expenses as a percentage of average assets was 1.72%. Net Interest Income and Net Interest Margin Net interest income totaled $41.7 million for the third quarter of 2007. This represented an increase of $1.0 million, or 2.46%, from net interest income of $40.7 million for the third quarter of 2006. This increase resulted from a $4.9 million increase in interest income, offset by a $5.1 million increase in interest expense and a $1.2 million decrease in the provision for credit losses. Net interest income before the provision for credit losses decreased $248,000, or 0.59%, in the third quarter of 2007. The increases in interest income were 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 an increase in interest rates. The increases in interest expense were due to the increase in the cost of interest bearing deposits and borrowed funds caused by deposit and borrowing instruments repricing Repricing To change the price of an asset. In derivatives, it sometimes refers to the exchange of options of with different strike prices. repricing at higher rates this year. The net interest margin (tax equivalent) declined from 3.22% for the third quarter of 2006 to 3.11% for the third quarter of 2007. However, from a quarter-to-quarter perspective, the third quarter net interest margin of 3.11% compares favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to the 2007 first and second quarter figures of 3.03% and 2.91%, respectively. Total average earning asset Earning asset An asset that generates income, e.g., income from rental property. yields have increased from 6.15% for the third quarter of 2006 to 6.28% for the third 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. has increased from 2.94% for the third quarter of 2006 to 3.20%, for the third 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. Net interest income totaled $119.7 million for the nine months ending September 30, 2007. This represents a decrease of $6.9 million, or 5.45%, from the net interest income of $126.6 million for the same period in 2006. This decrease resulted from a $23.7 million increase in interest income, which was offset by a $33.0 million increase in interest expense and a $2.4 million decrease in the provision for credit losses. Net interest income before the provision for credit losses decreased $9.3 million, or 7.21%, for the first nine months of 2007. The increases in interest income were primarily due to the growth in average earning assets and an increase in interest rates. The increases in interest expense were due to the increases in interest rates on deposits and borrowed funds. The net interest margin (tax equivalent) decreased from 3.43% for the first nine months of 2006 to 3.02% for the first nine months of 2007. Total average earning asset yields have increased from 6.01% for the first nine months of 2006 to 6.20% for the first nine months of 2007. The cost of funds has increased from 2.60% for the first nine months of 2006 to 3.22% for the first nine months of 2007. The allowance for credit losses increased from $26.9 million as of September 30, 2006 to $30.4 million as of September 30, 2007. This increase was due to the provision for credit losses of $600,000 in the last quarter of 2006 and the addition of $2.7 million from the acquisition of First Coastal Bank in June, 2007. During the first nine months of 2007, the Company experienced net recoveries of $20,000. No additional provision for credit losses was made in 2007. During the first nine months of 2006, the Company had net recoveries of $1.3 million and a provision for credit losses of $2.4 million. The allowance for credit losses was 0.92% of the total loans and leases outstanding as of September 30, 2007 and 2006. Other operating expenses increased for the third quarter and for the nine months ending September 30, 2007 when compared to the same period last year. The increases in salary and occupancy expenses were primarily related to the acquisition of First Coastal Bank. Intangible expense increased by $498,000 for the estimated amortization of intangibles acquired from First Coastal Bank. The Company also made a $741,000 provision to the reserve for unfunded commitments in the third quarter of 2007. Balance Sheet The Company reported total assets of $6.16 billion at September 30, 2007. This represented an increase of $184.7 million, or 3.09%, over total assets of $5.97 billion on September 30, 2006. Earning assets totaling $5.75 billion were up $144.3 million, or 2.57%, when compared with earning assets of $5.61 billion as of September 30, 2006. Total deposits were $3.44 billion as of September 30, 2007. This represents a decrease of $88.4 million, or 2.51%, from $3.52 billion at September 30, 2006. The Company has $1.29 billion, or 37.64%, of its deposits in non-interest bearing demand deposits. Gross loans and leases totaled $3.31 billion at September 30, 2007. This represents an increase of $394.7 million, or 13.53%, when compared with gross loans and leases of $2.92 billion at September 30, 2006. Total assets of $6.16 billion as of September 30, 2007 reflect an increase of $65.1 million, or 1.07 %, over total assets of $6.09 billion on December 31, 2006. Earning assets of $5.75 billion increased by $48.7 million, or 0.85%, compared to total earning assets of $5.70 billion at December 31, 2006. Total deposits of $3.44 billion at September 30, 2007 increased $28.3 million, or 0.83%, when compared with total deposits of $3.41 billion at December 31, 2006. Gross loans and leases of $3.31 billion increased $241.6 million, or 7.87%, from $3.07 billion at December 31, 2006. Investment Securities Investment securities totaled $2.39 billion as of September 30, 2007. This represents a decrease of $252.8 million, or 9.56%, when compared with the $2.64 billion in securities at September 30, 2006. It represents a decrease of $192.6 million, or 7.46%, when compared with $2.58 billion in investment securities at December 31, 2006. The Company is utilizing the monthly cash flow from investments to pay down borrowings or fund new loans. CitizensTrust CitizensTrust has over $2.6 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 $3.5 million in non-performing assets as of September 30, 2007. Non-performing assets represent 0.10% of total loans and 0.06% of total assets. There were no non-performing assets as of December 31, 2006. The allowance for credit losses was $30.4 million as of September 30, 2007. This represents 0.92% of gross loans and leases. It compares with an allowance for credit losses of $27.7 million, or 0.90% of gross loans and leases on December 31, 2006. The increase was primarily due to the addition of $2.7 million from the acquisition of First Coastal Bank in June, 2007, supplemented by net recoveries of $20,000 during the first nine months of 2007. 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 39 cities with 44 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, Citizens Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , provides vehicle leasing Vehicle leasing refers to leasing the use of a motor vehicle for a fixed or indefinite period of time. It is commonly offered by dealers as an alternative to vehicle purchase. , equipment leasing Equipment Leasing is a financing option to lease equipment for a certain amount of time. Leasing Benefits
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 In music, a fifteenth (sometimes abbreviated 15ma) is the interval between one musical note and another with one-quarter or quadruple the frequency. It corresponds to two octaves. It is the fourth harmonic. highest return on equity in the nation at 20.88%. 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. Certain matters set forth herein constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, including forward-looking statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc 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 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 year ended December 31, 2006, 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 CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date of such statements except as required by law. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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