For Immediate Release President & Chief Executive Officer
Ontario California, December 20, 2002—The Board of Directors of CVB Financial Corp. (NASDAQ/CVBF) declared a 5 for 4 stock split at its regularly scheduled Board of Directors Meeting on December 18, 2002. This will result in shareholders receiving one additional share of stock for every four shares they own. The 5 for 4 stock split will be accompanied by a cash dividend of $0.12.
Linn Wiley, President and Chief Executive Officer, stated that, “the decision to declare the 5 for 4 stock split and $0.12 cash dividend is predicated on the solid growth and strong financial performance of CVB Financial Corp. and its principal subsidiary, Citizens Business Bank. It also demonstrates the confidence of the Board in the future prospects of the Company.”
The stock effective date is January 3, 2003. Shareholders of record on that date will be entitled to the 5 for 4 stock split. They will receive the additional shares of stock on or about January 21, 2003. This is the stock distribution date.
The record date for the cash dividend of $0.12 is January 6, 2003. The cash payable date is January 21, 2003. The additional shares resulting from the 5 for 4 stock split and the cash dividend will be mailed to shareholders on January 21, 2003.
The cash dividend will be paid on a post split basis. Consequently, shareholders receiving the 5 for 4 stock split will receive the cash dividend on both the old and new shares. This represents the 53rd consecutive quarterly cash dividend paid the Company.
The annualized quarterly cash dividend of $0.12 totals $20.9 million. This represents an increase of $1.7 million, or 8.85%, when compared with the cash dividends of $19.2 million paid in 2002. The dividend annualized yield is 2.35% based on a market capitalization of $890.5 million.
CVB Financial Corp. reported earnings of $13.2 million for the third quarter ending September 30, 2002. This represented an increase of $2.4 million, or 22.22%, when compared with the $10.8 million in net income reported for the same period last year. Corresponding return on beginning equity was 24.26%, the return on average equity was 21.66% and the return on average assets was 1.95%.
Net income for the nine months ending September 30, 2002 was $37.2 million. This represented an increase of $7.9 million, or 27.00%, when compared with net earnings of $29.3 million for the same period in 2001. Net income for the nine months produced a return on beginning equity of 20.80%, a return on average equity of 18.89% and a return on average assets of 1.69%.
CVB Financial Corp. operates Citizens Business Bank. Citizens Business Bank is the largest bank headquartered in the Inland Empire. It is a dominant community bank in the Inland Empire, Los Angeles County, Orange County and the Central Valley areas of California. Shares of CVB Financial Corp. common stock are listed on the NASDAQ under the ticker symbol of CVBF.