For Immediate Release
Contact: D. Linn Wiley, President and Chief Executive Officer
CVB Financial Reports Record Earnings
Ontario, California, July 19, 2000. CVB Financial Corp. and its subsidiary, Citizens Business Bank, achieved exceptional earnings for the second quarter of 2000. This represents the 33rd consecutive quarter of record earnings for the Company.
Net earnings for the quarter ending June 30, 2000, were $8.4 million. This represents an increase of $1.4 million, or 20.24 percent, over net earnings of $7.0 million for the second quarter of 1999. Diluted earnings per share were $ 0.33 for the most recent quarter, compared with $0.28 for the same period last year. These results produced a return on beginning equity of 23.27 percent, and a return on average assets of 1.65 percent for the second quarter of 2000.
Net earnings for the six months ending June 30, 2000, were $16.3 million. This was $3.0 million, or 22.67 percent, ahead of net earnings of $13.3 million for the first half of 1999. Diluted earnings per share were $0.64 for the first half of 2000, compared to $0.52 for the first half of 1999. These results yielded a return on beginning equity of 23.16 percent, and a return on average assets of 1.61 percent for the first half of 2000.
Total assets reached a record high of $2.11 billion as of June 30, 2000. This represents an increase of $222.6 million, or 11.79 percent, when compared with total assets of $1.89 billion as of June 30, 1999. Deposits were $1.48 billion at the end of second quarter. Gross loans and leases of $991.4 million were up $126.5 million, or 14.62 percent, compared with gross loans and leases of $864.9 million at the end of the second quarter of 1999.
We have reported in the past the disposition of our law suit with MRI Grand Terrace, which has recently been under review by the California Court of Appeal. CVB Financial Corp. has received a tentative opinion from the Appellate Court indicating that the verdict of the lower court should be reversed and remanded to the lower court for retrial. At this time, the Appellate Court is preparing to hear oral arguments before it renders its final decision. It appears that this will lead to a new trial. We believe the case will resolve in our favor. However, until a decision is final, the funds placed in reserve for this case will not be released. If the case goes to a new trial, final resolution could take several years.
The Board of Directors declared a quarterly cash dividend of $0.12 per share at the regularly scheduled Board of Directors meeting on June 21, 2000. This represents the 43rd consecutive quarterly cash dividend paid the by Company.
Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to the tentative Appellate Court opinion in the MRI Grand Terrace law suit and its effect on the accrued liability previously taken with respect to this law suit. These forward-looking statements are subject to certain risks and uncertainties that could cause the actual results, performance or achievements to differ materially from those expressed, suggested or implied by the forward-looking statements due to a number of risk factors, including whether the tentative opinion becomes final and the ultimate disposition of the law suit.