CVB FINANCIAL CORP.
CONSOLIDATED BALANCE SHEET
(unaudited)
dollars in thousands
December 31
2003 2002
------------------- -------------------
Assets:
Federal funds sold and reverse repos $ - $ 40,000
Investment Securities available-for-sale 1,865,782 1,430,599
Investment in stock of Federal Home Loan Bank (FHLB) 37,966 21,900
Loans and lease finance receivables 1,759,941 1,446,009
Less allowance for credit losses (21,282) (21,666)
------------------- -------------------
Net loans and lease finance receivables 1,738,659 1,424,343
------------------- -------------------
Total earning assets 3,642,407 2,916,842
Cash and due from banks 112,008 124,973
Premises and equipment, net 31,069 29,413
Goodwill and intangibles 26,901 15,720
Other assets 41,964 36,463
------------------- -------------------
TOTAL $ 3,854,349 $ 3,123,411
=================== ===================
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Demand Deposits(noninterest-bearing) $ 1,142,330 $ 958,671
Investment Checking 227,031 195,419
Savings/MMDA 732,992 589,280
Time Deposits 558,157 566,594
------------------- -------------------
Total Deposits 2,660,510 2,309,964
Demand Note to U.S. Treasury 3,834 14,888
Borrowings 786,500 468,000
Trust Preferred 82,476 -
Other liabilities 35,593 70,738
------------------- -------------------
Total Liabilities 3,568,913 2,863,590
Stockholders' equity:
Stockholders' equity 268,156 234,165
Accumulated other comprehensive income
(loss), net of tax 17,280 25,656
------------------- -------------------
285,436 259,821
------------------- -------------------
TOTAL $ 3,854,349 $ 3,123,411
=================== ===================
CVB FINANCIAL CORP.
CONSOLIDATED AVERAGE BALANCE SHEET
(unaudited)
dollars in thousands
Three months ended December 31 Twelve months ended December 31
2003 2002 2003 2002
------------------- ------------------- -------------------- ----------------------
Assets:
Federal funds sold and reverse repos $ - $ 28,666 $ 2,436 $ 31,877
Investment securities available-for-sale 1,789,051 1,322,357 1,664,007 1,258,228
Investment in stock of Federal Home Loan Bank (FHLB) 38,425 21,232 34,169 20,988
Loans and lease finance receivables 1,679,099 1,353,391 1,529,944 (21,970)
Less allowance for credit losses (23,639) (22,479) (21,970) (22,173)
----------------- ----------------- ------------------ --------------------
Net loans and lease finance receivables 1,655,460 1,330,912 1,507,974 1,225,211
------------------- ------------------- -------------------- ----------------------
Total earning assets 3,482,936 2,703,167 3,208,586 2,536,304
Cash and due from banks 104,780 117,044 109,227 112,535
Premises and equipment, net 31,545 28,772 31,049 29,387
Goodwill and intangibles 17,376 6,269 15,974 6,336
Other assets 84,493 34,297 75,205 39,937
------------------- ------------------- -------------------- ----------------------
TOTAL $ 3,721,130 $ 2,889,549 $ 3,440,041 $ 2,724,499
=================== =================== ==================== ======================
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing $ 1,080,209 $ 872,327 $ 975,134 $ 807,505
Interest-bearing 1,543,094 1,354,709 1,460,296 1,253,790
------------------- ------------------- -------------------- ----------------------
Total Deposits 2,623,303 2,227,036 2,435,430 2,061,295
Other borrowings 766,488 364,575 672,827 384,928
Trust Preferred 14,344 - 3,615 -
Other liabilities 32,682 35,660 52,606 34,987
----------------- ----------------- ------------------ --------------------
Total Liabilities 3,436,817 2,627,271 3,164,478 2,481,210
Stockholders' equity:
Stockholders' equity 270,443 233,374 254,223 224,652
Accumulated other comprehensive income
(loss), net of tax 13,870 28,904 21,340 18,637
------------------- ------------------- -------------------- ----------------------
284,313 262,278 275,563 243,289
------------------- ------------------- -------------------- ----------------------
TOTAL $ 3,721,130 $ 2,889,549 $ 3,440,041 $ 2,724,499
=================== =================== ==================== ======================
CVB FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)
dollar amounts in thousands, except per share
For the Three Months For the Twelve Months
Ended December 31, Ended December 31,
2003 2002 2003 2002
--------------- --------------- ------------- ------------
Interest Income:
Loans, including fees $ 26,780 $ 24,014 $ 99,042 $ 90,351
Investment securities:
Taxable 14,239 11,488 51,204 47,097
Tax-advantaged 3,977 4,145 16,065 16,273
------------- ------------ ------------- -------------
Total investment income 18,216 15,633 67,269 63,370
Federal funds sold (7) 124 34 602
------------- ------------ ------------ -------------
Total interest income 44,989 39,771 166,345 154,323
Interest Expense:
Deposits 3,818 4,925 16,323 21,470
Borrowings 5,098 4,418 20,730 18,969
------------- ------------ ------------- --------------
Total interest expense 8,916 9,343 37,053 40,439
------------- ------------ ------------- --------------
Net interest income before provision for credit losses 36,073 30,428 129,292 113,884
Provision for credit losses - - - -
------------- ------------ ------------- --------------
Net interest income after
provision for credit losses 36,073 30,428 129,292 113,884
Other Operating Income:
Service charges on deposit accounts 3,758 3,818 15,039 14,154
Wealth Management services 1,000 872 3,904 3,764
Gain(Loss) on sale of securities - (43) 4,210 4,897
Other 1,721 1,746 6,836 6,203
------------- ------------ ------------- --------------
Total other operating income 6,479 6,393 29,989 29,018
Other operating expenses:
Salaries and employee benefits 11,099 9,204 41,493 35,970
Occupancy 1,794 1,608 6,738 6,339
Equipment 1,974 1,781 6,878 6,212
Professional services 985 1,073 4,005 4,084
Goodwill Amortization 297 297 815 578
Other 4,760 3,379 17,864 12,873
------------- ------------ ------------- ------------
Total other operating expenses 20,909 17,342 77,793 66,056
------------- ------------ ------------- ------------
Earnings before income taxes 21,643 19,479 81,488 76,846
Income taxes 7,537 6,887 28,656 27,101
------------- ------------ ------------- ------------
Net earnings $ 14,106 $ 12,592 $ 52,832 $ 49,745
=============== ============= ============= ============
Basic earnings per common share $ 0.29 $ 0.26 $ 1.10 $ 1.04
================ ============= ============= ============
Diluted earnings per common share $ 0.29 $ 0.26 $ 1.08 $ 1.01
================ ============= ============= ============
Cash dividends per common share $ 0.12 $ 0.14 $ 0.54 $ 0.56
================= ============= ============= ============
All per share information has been retroactively adjusted to reflect
the 10% stock dividend declared on December 17, 2003.
Three months ended December 31 Twelve months ended December 31
2003 2002 2003 2002
------------------------------------------ -------------------------------------------
Interest income - (Tax Effective)(te) 46,274 41,108 171,530 159,574
Interest Expense 8,916 9,343 37,053 40,439
------------------- -------------------- -------------------- --------------------
Net Interest income - (te) 37,358 31,765 134,477 119,135
=================== ==================== ==================== ====================
Net Earnings Reconciliation (non-GAAP disclosure):
Net operating income without net gain on sale of
securities, the prepayment penalty, and reversal of
excess accrual on legal expense 14,105 12,617 51,373 46,571
Net gain on sale of securities, net of tax 0 (25) 2,724 3,174
Prepayment penalty, net of tax 0 0 (3,401) 0
Reversal of excess legal accrual, net of tax 0 0 2,136 0
------------------- -------------------- -------------------- --------------------
Reported net earnings 14,105 12,592 52,832 49,745
=================== ==================== ==================== ====================
Gain(Loss) on sale of securities 0 (43) 4,210 4,897
Gain on sale of OREO 0 0 0 0
Return on average assets 1.50% 1.73% 1.54% 1.83%
Return on average equity 19.68% 19.05% 19.17% 20.40%
Efficiency ratio 49.14% 47.08% 48.84% 46.22%
Net interest margin (te) 4.25% 4.83% 4.18% 4.66%
Weighted average shares outstanding
Diluted 49,283,376 48,993,445 49,110,326 49,035,768
Basic 48,402,709 47,876,530 48,182,424 47,985,700
Dividend payout ratio 41.67% 41.38% 40.96% 41.81%
Number of shares outstanding-EOP 48,289,347 47,886,442
Book value per share 5.91 5.43
December 31
2003 2002
------------------- --------------------
Non-performing Assets (dollar amount in thousands):
Non-accrual loans $548 $190
Loans past due 90 days or more
and still accruing interest 0 634
Restructured loans 0 0
Other real estate owned (OREO), net 0 0
------------------- --------------------
Total non-performing assets $548 $824
=================== ====================
Percentage of non-performing assets
to total loans outstanding and OREO 0.03% 0.06%
Percentage of non-performing
assets to total assets 0.01% 0.03%
Non-performing assets to
allowance for loan losses 2.57% 3.80%
Net loan losses to Average loans 0.09% 0.09%
Allowance for Credit Losses at Beginning of Period:
Citizens Business Bank $21,666 $20,469
Acquisition of Western Security Bank 2,325
Acquisition of Kaweah National Bank 2,767
Reclass Uncommitted LOC Reserve to Other Liab (1,733) 0
Total Loans Charged-Off (3,017) (2,409)
Total Loans Recovered 1,599 1,281
------------------- --------------------
Net Loans Charged-Off (1,418) (1,128)
Provision Charged to Operating Expense 0 0
------------------- --------------------
Allowance for Credit Losses at End of period $21,282 $21,666
=================== ====================