For Immediate Release Contact: D. Linn Wiley
Chief Executive Officer
Ontario, California, January 15, 2003. CVB Financial Corp. (NASDAQ:CVBF), parent company of Citizens Business Bank, today announced record earnings of $49.7 million for the year ended December 31, 2002. This represents an increase of $9.7 million, or 24.2%, when compared with earnings of $40.0 million for the year ended December 31, 2001.
Diluted earnings per share were $1.11 for 2002. This is up $0.21, or 23.3%, from the $0.90 posted for 2001. All per share amounts have been restated to reflect the 5-for-4 stock split declared on December 18, 2002. Earnings for the year produced a return on beginning equity of 22.5%, a return on average equity of 20.5% and a return on average assets of 1.8%.
During the year, the Company restructured a portion of the investment portfolio to align it with the current interest rate environment. This involved the sale of $261.2 million in securities. The sale of these securities resulted in a gain of $4.9 million before taxes, and a gain of $3.2 million after taxes.
If the Company had not realized this gain on the sale of securities, net income would have been $46.5 million. This would represent an increase in net income of $6.5 million, or 16.27%, over the $40.0 million for 2001. The comparable net income per diluted share would be $1.04. This would be an increase of $0.14, or 15.56%, over the net income per diluted share of $0.90 for 2001. These earnings results would have produced a return on beginning equity of 21.10%, a return on average equity of 19.40% and a return on average assets of 1.71%. The related efficiency ratio would have been 47.86%.
Earnings for the fourth quarter ending December 31, 2002 were $ 12.6 million. This represents an increase of $1.8 million, or 16.4%, over the earnings of $10.8 million reported for the fourth quarter of 2001. This was the 43rd consecutive quarter of record earnings.
Diluted earnings per share for the fourth quarter of 2002 were $0.28. This is up $0.03, or 12.0%, from the $0.25 posted for the fourth quarter of 2001. All per share amounts have been restated to reflect the 5-for-4 stock split. Earnings for the fourth quarter produced a return on beginning equity of 23.1%, a return on average equity of 19.5% and a return on average assets of 1.8%
Deposits reached a record high of $2.3 billion at December 31, 2002. This was up $433.0 million, or 23.1%, when compared with the $1.9 billion in deposits reported at December 31, 2001. Demand deposits were $958.7 million, or 41.5% of the total deposits. This represents an increase of $192.3 million, or 25.1%, when compared with $766.3 million for last year.
Gross loans and leases were $1.4 billion at December 31, 2002. This represents an increase of $258.5 million, or 21.8%, when compared to gross loans and leases of $ 1.2 billion on December 31, 2001. Total assets reached a record high of $3.1 billion. This was up $ 607.6 million, or 24.2 %, over total assets of $2.5 billion at the end of 2001.
CVB Financial Corp. reported non-performing loans and non-performing assets of $824,000 as of December 31, 2002. This represents a ratio of non-performing assets to total assets of 0.03%. The allowance for loan and lease losses was $21.7 million as of December 31, 2002. This represents 1.50% of gross loans and leases, and compares with 1.72% on December 31, 2001. Non-performing loans and leases were 3.80% of the allowance for loan and lease losses.
Linn Wiley, President and Chief Executive Officer for CVB Financial Corp. and Citizens Business Bank, stated, “We are pleased to have achieved these new milestones in our growth and financial performance. Total assets exceeded $3.1 billion and earnings hit $49.7 million for the first time in our history. This reflects the commitment by everyone in our organization to provide superior performance for our customers, our communities and our shareholders.”
The Board of Directors of CVB Financial Corp. declared a 5-for-4 stock split on December 18, 2002. In addition, the Board of Directors declared a $0.12 cash dividend. The cash dividend will be paid on a post 5-for-4 stock split basis. This cash dividend represents the 53rd consecutive quarterly cash dividend paid by the Company.
CVB Financial Corp. is the parent for Citizens Business Bank. Citizens Business Bank operates 32 Business Financial Centers 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.