CVB Financial Corp. (CVBF) filed Quarterly Report for the period ended 2009-09-30.
CVB Financial Corp. is a bank holding company. CVB's principal business is to serve as a holding company for the Bank Community Ventures and for other banking or banking related subsidiaries which the Company may establish or acquire. Through its network of banking offices the Bank emphasizes personalized service combined with offering a full range of banking and trust services to businesses professionals and individuals located in the service areas of its offices. Cvb Financial Corp. has a market cap of $806.6 million; its shares were traded at around $7.61 with a P/E ratio of 14.1 and P/S ratio of 2.2. The dividend yield of Cvb Financial Corp. stocks is 4.5%. Cvb Financial Corp. had an annual average earning growth of 16.2% over the past 10 years. GuruFocus rated Cvb Financial Corp. the business predictability rank of 4.5-star.
Highlight of Business Operations:
Our net income decreased to $48.4 million for the first nine months of 2009 compared with $50.8 million for the first nine months of 2008, a decrease of $2.4 million or 4.82%. The decrease of $2.4 million is primarily the result of the increase in provision for credit losses of $46.3 million and an increase in non-interest expense of $6.4 million, offset by an increase in net interest income before provision for credit losses of $22.6 million and gain on sale of securities of $28.4 million. Diluted earnings per common share decreased to $0.40 per share for 2009, from $0.61 per share in 2008. A substantial portion of the decrease in diluted earnings per share is associated with dividends paid and amortization of the discount on our preferred stock which was repaid in the current quarter.
Our net income increased to $19.3 million for the quarter ended September 30, 2009 compared with $17.5 million for the same period in 2008, an increase of $1.8 million or 10.66%. The increase of $1.8 million is primarily the result of the gain of sale of securities of $6.9 million and an increase in net interest income of $5.8 million, offset by an increase in provision for credit losses of $9.0 million.
We reported net earnings of $48.4 million for the nine months ended September 30, 2009. This represented a decrease of $2.4 million or 4.82%, from net earnings of $50.8 million for the nine months ended September 30, 2008 primarily due to an increase in loan loss provision of $46.3 million and an increase in non-interest expense of $6.4 million, offset by gains on sales of securities of $28.4 million and an increase in our net interest income of $22.6 million year over year. Basic and diluted earnings per common share for the nine-month period decreased to $0.40 per share for 2009, compared to $0.61 earnings per common share for 2008. The annualized return on average assets was 0.99% for the nine months of 2009 compared to an annualized return on average assets of 1.07% for the nine months of 2008. The annualized return on average equity was 10.01% for the nine months ended September 30, 2009, compared to an annualized return of 15.10% for the nine months ended September 30, 2008. The decrease in annualized return on average equity for the nine-month period is attributed to an increase in our average equity balance as a result of the preferred stock we issued to the U.S. Treasury in December 2008 as a result of our participation in the Treasury’s Capital Purchase Program. During the third quarter, we raised $132.5 million in gross proceeds from common stock issuance and repurchased all of the preferred stock issued to the U.S. Treasury.
Interest expense totaled $66.5 million for the first nine months of 2009. This represented a decrease of $41.6 million, or 38.50%, from total interest expense of $108.1 million for the same period last year. The decrease in interest expense was primarily the result of a decrease in the average rate paid on interest-bearing liabilities to 1.98% for the first nine months of 2009 from 3.10% for the same period in 2008, or 112 basis points. The decrease in rates paid on deposits and borrowings was offset by an increase in average interest-bearing deposits of $460.6 million, or 23.09%, from $1.99 billion to $2.46 billion.
For the third quarter ended September 30, 2009, our net interest income, before provision for credit losses, totaled $54.8 million. This represented an increase of $5.8 million, or 11.82%, over net interest income of $49.0 million for the same period in 2008. The increase in net interest income of $5.8 million resulted from a decrease of $13.4 million in interest expense, offset by a $7.6 million decrease in interest income.
Interest expense totaled $21.1 million for the third quarter of 2009. This represented a decrease of $13.4 million or 38.79%, from total interest expense of $34.5 million for the same period last year. The decrease in interest expense was primarily the result of a decrease in the average rate paid on interest-bearing liabilities to 1.89% for the third quarter ending September 30, 2009 from 2.91% for the same period in 2008, or 102 basis points. The decrease in yields was offset by an increase in average interest-bearing deposits of $658.8 million, or 34.03%, from $1.94 billion to $2.59 billion.
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