Contact: D. Linn Wiley
President and CEO
Ontario, CA, July 17, 2002-CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business Bank, announced record results for the second quarter of 2002. This included record deposits, record loans, record assets and record earnings. It was the 41st consecutive quarter of record earnings for the Company.
CVB Financial Corp. reported net income of $11.6 million for the second quarter ending June 30, 2002. This represents an increase of $2.0 million, or 20.68%, when compared with the $9.6 million in net income reported for the second quarter of 2001. Earnings per share for the second quarter of 2002 were $0.32 per diluted share. This is up $0.05, or 18.52% when compared with earnings per share of $0.27 for the second quarter of 2001. Earnings results for the second quarter of 2002 produced a return on beginning equity of 21.38%, a return on average equity of 20.49% and a return on average assets of 1.81%. The efficiency ratio was 44.12%.
Net income for the six months ending June 30, 2002 was $23.9 million. This represents an increase of $5.5 million, or 29.82%, when compared with net earnings of $18.5 million for the first half of 2001. Diluted earnings per share were $0.67. This was up $0.15, or 28.85%, from diluted earnings per share of $0.52 for the same period last year. Net income for the first half of 2002 produced a return on beginning equity of 22.01%, a return on average equity of 21.16% and a return on average assets of 1.90%. The efficiency ratio for the first half was 45.77%.
At June 30, 2002, total assets were $2.86 billion. This represents an increase of $536.2 million, or 23.04%, over the $2.33 billion in total assets reported on June 30, 2001. Total deposits rose to $2.11 billion. This is up $457.8 million, or 27.68%, from $1.65 billion last year. Gross loans and leases grew to $1.26 billion as of June 30, 2002. This is an increase of $194.5 million, or 18.22%, from $1.07 billion in gross loans and leases on June 30, 2001. Wealth Management Group assets were approximately $1.0 billion on June 30, 2002.
CVB Financial Corp reported non-performing assets of $836,000 as of June 30, 2002. This represents a ratio of non-performing assets to total assets of 0.03%. Non-performing loans were $836,000. This represents 0.07% of gross loans and leases. The allowance for loan and lease losses was $23.8 million as of June 30, 2002. This represents 1.88% of gross loans and leases, and compares with 1.94% on June 30, 2001. Non-performing loans and leases were 3.52% of the allowance for loan and lease losses.
“We are pleased to announce the completion of two recent acquisitions,” announced Linn Wiley, President and Chief Executive Officer. “On June 28, 2002, we consummated our acquisition of Western Security Bank in Burbank. This was a $6.23 million cash transaction. Our new Burbank Business Financial Center accounted for $149.2 million in assets, $138.6 million in deposits and $95.4 million in consolidated loans at the end of the quarter.”
“The acquisition of Golden West Enterprises, Inc. was completed on July 1, 2002 in a $2.9 million cash transaction,” added Wiley. “Golden West is an auto and equipment leasing company based in Costa Mesa, California. They also provide real estate loan brokerage services. As of July 1, 2002, Golden West Enterprises, Inc. had approximately $25 million in lease receivables.”
Citizens Business Bank is the largest bank headquartered in the Inland Empire Region of Southern California. It serves 25 cities with 32 business financial centers in Los Angeles, Orange, Riverside, San Bernardino and Kern Counties. Shares of CVB Financial Corp. common stock are listed on the NASDAQ under the ticker symbol of CVBF.