[X] QUARTERLY REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2004
or
[ ] TRANSITION REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _____ to _____
Commission File Number: 0-10140
CVB FINANCIAL CORP.
(Exact name of
registrant as specified in its charter)
| California (State or other jurisdiction of incorporation or organization) |
95-3629339 (I.R.S. Employer Identification No.) |
701 North Haven Ave, Suite 350, Ontario, California (Address of Principal Executive Offices) |
91764 (Zip Code) |
(909) 980-4030
(Registrant’s
telephone number, including area code)
Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by
section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.
Yes _X_ No ___
Indicate
by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of
the Exchange Act).
Yes _X_ No ___
Number of shares of common stock of the registrant: 48,399,984 outstanding as of August 5, 2004.
| Item 1. Financial Statements |
| 1. Summary of Significant Accounting Policies |
| Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation |
| General |
| Overview |
| Critical Accounting Policies |
| Analysis of the Results of Operations |
| Analysis of Financial Condition |
| Risk Management |
| Item 3. Quantitative and Qualitative Disclosures about Market Risk |
| Item 4. Controls and Procedures |
| Item 1. Legal Proceedings |
| Item 2. Changes in Securities, Use of Proceeds and Issuer Purchases of Equity Securities |
| Item 3. Defaults upon Senior Securities |
| Item 4. Submission of Matters to a Vote of Security Holders |
| Item 5. Other Information |
| Item 6. Exhibits and Reports on Form 8-K |
| PART I –
FINANCIAL INFORMATION (UNAUDITED) ITEM 1. FINANCIAL STATEMENTS | ||||||||
|---|---|---|---|---|---|---|---|---|
CVB FINANCIAL CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (unaudited) Dollar amounts in thousands | ||||||||
| June 30, 2004 |
December 31, 2003 | |||||||
| ASSETS | ||||||||
| Investment securities available-for-sale | 2,070,091 | 1,865,782 | ||||||
| Investment in stock of Federal Home Loan Bank (FHLB) | 45,919 | 37,966 | ||||||
| Loans and lease finance receivables | 1,938,960 | 1,759,941 | ||||||
| Allowance for credit losses | (22,140 | ) | (21,282 | ) | ||||
| Total earning assets | 4,032,830 | 3,642,407 | ||||||
| Cash and due from banks | 164,988 | 112,008 | ||||||
| Premises and equipment, net | 29,607 | 31,069 | ||||||
| Goodwill and other intangibles: | ||||||||
| Amortizable | 6,728 | 7,321 | ||||||
| Non-amortizable | 19,580 | 19,580 | ||||||
| Cash value life insurance | 66,262 | 15,800 | ||||||
| Accrued interest receivable | 16,898 | 15,724 | ||||||
| Deferred tax assets | 9,388 | -- | ||||||
| Other assets | 17,741 | 10,440 | ||||||
| TOTAL ASSETS | $ | 4,364,022 | $ | 3,854,349 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Liabilities: | ||||||||
| Deposits: | ||||||||
| Noninterest-bearing | $ | 1,291,278 | $ | 1,142,330 | ||||
| Interest-bearing | 1,540,325 | 1,518,180 | ||||||
| Total deposits | 2,831,603 | 2,660,510 | ||||||
| Demand Note to U.S. Treasury | 2,431 | 3,834 | ||||||
| Short-term borrowings | 519,700 | 405,500 | ||||||
| Long-term borrowings | 600,000 | 381,000 | ||||||
| Deferred tax liabilities | -- | 5,203 | ||||||
| Accrued interest payable | 5,300 | 5,259 | ||||||
| Deferred compensation | 7,440 | 6,955 | ||||||
| Junior subordinated debentures | 82,476 | 82,476 | ||||||
| Other liabilities | 34,216 | 16,891 | ||||||
| TOTAL LIABILITIES | 4,083,166 | 3,567,628 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| Stockholders' Equity: | ||||||||
| Preferred stock (authorized, 20,000,000 shares | ||||||||
| without par; none issued or outstanding) | -- | -- | ||||||
| Common stock (authorized, 78,125,000 shares | ||||||||
| without par; issued and outstanding | ||||||||
| 48,371,663 (2004) and 48,289,347 (2003)) | 233,245 | 232,959 | ||||||
| Retained earnings | 50,481 | 36,482 | ||||||
| Accumulated other comprehensive income, net of tax | (2,870 | ) | 17,280 | |||||
| Total stockholders' equity | 280,856 | 286,721 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 4,364,022 | $ | 3,854,349 | ||||
See accompanying notes to the consolidated financial statements. |
| CVB FINANCIAL CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (unaudited) Dollar amounts in thousands, except per share |
||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the Three Months Ended June 30, |
For the Six Months Ended June 30, | |||||||||||||
| 2004 |
2003 |
2004 |
2003 | |||||||||||
| Interest income: | ||||||||||||||
| Loans, including fees | $ | 27,136 | $ | 23,813 | $ | 53,386 | $ | 47,633 | ||||||
| Investment securities: | ||||||||||||||
| Taxable | 15,659 | 12,802 | 31,387 | 25,186 | ||||||||||
| Tax-preferred | 3,656 | 4,021 | 7,626 | 8,150 | ||||||||||
| Total investment income | 19,315 | 16,823 | 39,013 | 33,336 | ||||||||||
| Federal funds sold | 1 | 28 | 3 | 40 | ||||||||||
| Total interest income | 46,452 | 40,664 | 92,402 | 81,009 | ||||||||||
| Interest expense: | ||||||||||||||
| Deposits | 3,605 | 4,266 | 7,288 | 8,782 | ||||||||||
| Borrowings | 5,610 | 5,851 | 10,984 | 10,441 | ||||||||||
| Junior subordinated debentures | 1,330 | -- | 2,660 | -- | ||||||||||
| Total interest expense | 10,545 | 10,117 | 20,932 | 19,223 | ||||||||||
| Net interest income before provision for credit losses | 35,907 | 30,547 | 71,470 | 61,786 | ||||||||||
| Provision for credit losses | -- | -- | -- | -- | ||||||||||
| Net interest income after provision for credit losses | 35,907 | 30,547 | 71,470 | 61,786 | ||||||||||
| Other operating income: | ||||||||||||||
| Service charges on deposit accounts | 3,512 | 3,749 | 7,305 | 7,445 | ||||||||||
| Wealth Management services | 1,111 | 925 | 2,274 | 1,972 | ||||||||||
| Investment services | 427 | 382 | 802 | 788 | ||||||||||
| Bankcard services | 401 | 314 | 826 | 649 | ||||||||||
| Other | 1,347 | 1,081 | 2,673 | 1,692 | ||||||||||
| Impairment charge on investment securities | -- | -- | (6,300 | ) | -- | |||||||||
| Gain on sale of securities, net | 5,212 | 29 | 5,212 | 823 | ||||||||||
| Total other operating income | 12,010 | 6,480 | 12,792 | 13,369 | ||||||||||
| Other operating expenses: | ||||||||||||||
| Salaries and employee benefits | 11,610 | 9,907 | 23,352 | 19,895 | ||||||||||
| Occupancy | 1,907 | 1,621 | 3,680 | 3,172 | ||||||||||
| Equipment | 1,855 | 1,579 | 3,711 | 3,071 | ||||||||||
| Stationary and supplies | 1,185 | 1,184 | 2,404 | 2,283 | ||||||||||
| Professional services | 1,001 | 1,302 | 2,122 | 1,983 | ||||||||||
| Promotion | 1,240 | 1,036 | 2,760 | 2,165 | ||||||||||
| Data processing | 377 | 244 | 730 | 547 | ||||||||||
| Amortization of intangibles | 296 | 203 | 592 | 315 | ||||||||||
| Other | 1,533 | 782 | 3,158 | 2,166 | ||||||||||
| Total other operating expenses | 21,004 | 17,858 | 42,509 | 35,597 | ||||||||||
| Earnings before income taxes | 26,913 | 19,169 | 41,753 | 39,558 | ||||||||||
| Income taxes | 9,462 | 6,649 | 14,230 | 14,334 | ||||||||||
| Net earnings | $ | 17,451 | $ | 12,520 | $ | 27,523 | $ | 25,224 | ||||||
| Basic earnings per common share | $ | 0.36 | $ | 0.26 | $ | 0.57 | $ | 0.52 | ||||||
| Diluted earnings per common share | $ | 0.36 | $ | 0.25 | $ | 0.56 | $ | 0.51 | ||||||
| Cash dividends per common share | $ | 0.12 | $ | 0.12 | $ | 0.24 | $ | 0.24 | ||||||
See accompanying notes to the consolidated financial statements. |
| CVB FINANCIAL CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Common Shares Outstanding
|
Common Stock
|
Retained Earnings
|
Accumulated Other Comprehensive Income, Net of Tax
|
Comprehensive Income
| |||||||||||||
| (amounts and shares in thousands) | |||||||||||||||||
| Balance January 1, 2003 | 43,533 | $ | 146,449 | $ | 87,716 | $ | 25,656 | ||||||||||
| Issuance of common stock | 317 | 989 | |||||||||||||||
| 10% stock dividend | 4,387 | 75,990 | (75,990 | ) | |||||||||||||
| Repurchase of common stock | (349 | ) | (615 | ) | (6,438 | ) | |||||||||||
| Shares issued for acquisition of Kaweah National Bank | 401 | 7,904 | |||||||||||||||
| Tax benefit from exercise of stock options | 2,242 | ||||||||||||||||
| Cash dividends | (21,638 | ) | |||||||||||||||
| Comprehensive income: | |||||||||||||||||
| Net earnings | 52,832 | $ | 52,832 | ||||||||||||||
| Other comprehensive income: | |||||||||||||||||
| Unrealized loss on securities available-for-sale, net | (8,376 | ) | (8,376 | ) | |||||||||||||
| Comprehensive income | $ | 44,456 | |||||||||||||||
| Balance December 31, 2003 | 48,289 | 232,959 | </ | ||||||||||||||