President & Chief Executive Officer
ONTARIO, CA, April 17, 2002—CVB Financial Corp. (NASDAQ: CVBF), today announced record results for the first quarter of 2002. This is the 40th consecutive quarter of record results for the Company when compared with the same results for the prior year.
Net income for the first quarter of 2002 was $12.3 million. This represents an increase of $3.5 million, or 39.83%, over net income of $8.8 million reported for the first quarter of 2001. Net income of $0.35 per diluted share rose $0.10, or 40.00%, above the $0.25 per diluted share for 2001.
These earnings results produced a return on beginning equity of 22.63%, a return on average equity of 21.84% and a return on average assets of 1.99%. The efficiency ratio for the first quarter was 44.12%.
During the quarter, the Company restructured a portion of the investment portfolio. This involved the sale of $150.0 million in securities. It was done to align the investment portfolio with the current interest rate environment. The sale of these securities resulted in a gain of $3.1 million before taxes, and a gain of $2.0 million after taxes.
If the Company had not realized this gain on the sale of securities, net income would have been $10.4 million. This would represent an increase in net income of $1.6 million, or 18.18%, over the $8.8 million for 2001. The comparable net income per diluted share would be $0.29. This would be an increase of $0.04, or 16.00%, over the net income per diluted share of $0.25 for 2001.
These earnings results would have produced a return on beginning equity of 19.16%, a return on average equity of 18.49% and a return on average assets of 1.69%. The related efficiency ratio would have been 48.35%.
Total assets were $2.6 billion as of March 31, 2002. This is an increase of $313.5 million, or 13.80%, when compared with total assets of $2.3 billion on March 31, 2001. Total deposits of $1.9 billion were up $270.6 million, or 16.70%, over the total deposits of $1.6 billion at the same time last year. Gross loans and leases grew to $1.2 billion. They rose $119.7 million, or 11.55%, from $1.0 billion in 2001. The Wealth Management Group based in Pasadena has nearly $1 billion under administration.
“We are extremely pleased with the positive growth trends and earnings results which we achieved during the first quarter,” said Linn Wiley, President and Chief Executive Officer of CVB Financial Corp. “We are also optimistic about the prospects for the balance of the year.”
CVB Financial Corp. reported $1.3 million in non-performing assets. This represents a ratio of non-performing assets to total assets of 0.05% as of March 31, 2002. In addition, the allowance for loan and lease losses of $21.1 million represented 1.82% of total loans and 1572.66% of non-performing loans. This compares with an allowance for loan and lease losses of $20.0 million on March 31, 2001. This represented 1.93% of gross loans and leases and 2262.29% of non-performing loans.
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 24 cities with 31 branches 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. For investor information on CVB Financial Corp. visit our Citizens Business Bank web site at www.cbbank.com and click on the CVB Stock 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, 2001, and particularly the discussion on risk factors within that document.