Contact: D. Linn Wiley
President and Chief Executive Officer
The Company reported net income of $10.8 million for the third quarter ending September 30, 2001. This represents an increase of $1.7 million, or 18.09%, when compared with the $9.1 million in net income reported for the third quarter of 2000. Earnings per share for the third quarter of 2001 were $0.38 per diluted share. This is up $0.05, or 15.15%, when compared with earnings per share of $0.33 for the third quarter of 2000.
This is the 38th consecutive quarter of record earnings for the Company. Earnings results for the third quarter of 2001 produced a return on beginning equity of 23.20%, a return on average equity of 20.90% and a return on average assets of 1.89%. The efficiency ratio for the third quarter was 46.59%.
Net income for the nine months ending September 30, 2001 was $29.2 million. This represents an increase of $3.8 million, or 14.95%, when compared with net earnings of $25.4 million for the same period in 2000. Diluted earnings per share were $1.03. This was up $0.13, or 14.44%, from diluted earnings per share of $0.90 for the same period last year. Net income for the nine months ending September 30, 2001 produced a return on beginning equity of 20.73%, a return on average equity of 19.27% and a return on average assets of 1.71%. The efficiency ratio for the nine-month period was 47.91%
At September 30, 2001, total assets were $2.37 billion. This represents an increase of $150.5 million, or 6.79%, over the $2.22 billion in total assets reported on September 30, 2000. Total assets were increased for a short period of time during the latter part of September and early part of October of 2000 as the result of a large deposit transaction. Total assets would have grown $253.9 million, or 11.4%, without this transaction. Trust assets were $940.2 million on September 30, 2001.
Total deposits rose to $1.75 billion as of September 30, 2001. This is up $95.1 million, or 5.73%, from $1.66 billion for the same period last year. The large $110 million short-term deposit referred to above also influenced the deposit growth comparison for 2001. Without this transaction, deposits would have been up $205.1 million, or 13.24%, year over year.
Gross loans and leases grew to $1.08 billion as of September 30, 2001. This is an increase of $71.5 million, or 7.11%, from the $1.01 billion in gross loans and leases on September 30, 2000.
“We are pleased to report these positive operating results,” said D. Linn Wiley, President and Chief Executive Officer of CVB Financial Corp. “The 14.95% growth in net earnings over the same period last year brings us close to our objective to increase earnings by 15.00% for the year.”
CVB Financial Corp. reported non-performing loans and non-performing assets of $1.7 million as of September 30, 2001. This represents a ratio of non-performing assets to total assets of 0.07%. The allowance for loan and lease losses was $21.3 million as of September 30, 2001. This represents 1.98% of gross loans and leases, and compares with 1.90% on September 30, 2000. Non-performing loans and leases were 7.98% of the allowance for loan and lease losses.
Non-interest income showed continued growth. Non-interest income increased to $16.7 million for the nine months ending September 30, 2001. This was up $2.9 million, or 21.33%, from the $13.8 million reported for the same period of 2000. Non-interest income includes asset management income, service charges and deposit fees. CVB Financial Corp. continues to maintain capital ratios that exceed the well-capitalized standards established by the bank regulatory agencies.
CVB Financial Corp. is the holding company for Citizens Business Bank. The Bank is the largest bank headquartered in the Inland Empire Region of Southern California. It serves 23 cities with 30 branches in Los Angeles, Orange, Riverside and San Bernardino Counties. 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 web site at www.cbbank.com and click on the CVB Investor tab.
This document may contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from the projected. For a discussion of 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 for the year ended December 31, 2000, and particularly the discussion of risk factors within that document.
Comparative Financial Statements to follow.