CVB Financial Corp. (CVBF, Financial) filed Annual Report for the period ended 2011-12-31.
Cvb Finl has a market cap of $1.16 billion; its shares were traded at around $10.77 with a P/E ratio of 14.2 and P/S ratio of 3.8. The dividend yield of Cvb Finl stocks is 3.1%. Cvb Finl had an annual average earning growth of 1.7% over the past 10 years.
The increase in net earnings for 2011 compared to 2010 was primarily the result of a decrease in the provision for credit losses of $54.1 million and a $27.5 million decrease in other operating expenses. These decreases included $15.4 million in prepayment penalties ($3.3 million in 2011 compared to $18.7 million in 2010) and $3.5 million in provision for unfunded commitments, partially offset by a decrease in net interest income of $24.6 million, as described herein, and a decrease in other operating income of $22.9 million. The decrease in other operating income was primarily due to gain on sale of securities of $38.9 million in 2010, partially offset by an increase of $16.0 million in the FDIC loss sharing asset
The decrease in net earnings for 2010 compared to 2009 was primarily the result of an increase in other operating expenses. Significant items included prepaying $350.0 million in borrowings which resulted in $18.7 million in prepayment penalties, a $6.3 million increase in professional fees, and a $6.3 million increase in OREO expenses. In addition, there was a decrease in other operating income due to several causes. Gain on sales of securities increased $10.5 million in 2010 over 2009. However, this was offset by a $15.9 million reduction in the SJB loss-sharing asset in 2010. In addition, 2009 included a $21.1 million gain from the SJB acquisition. These three items resulted in a $26.5 million reduction in other operating income. The provision for credit losses decreased $19.3 million in 2010 from 2009.
Interest income of $269.7 million decreased $47.6 million, or 14.99% compared to total interest income of $317.3 million for 2010. The decrease in interest income was primarily due to a $444.6 million decrease in the average balance of loans for 2011 which decreased interest income by $23.4 million. In addition, there was a $14.1 million decrease in the discount accretion from covered SJB loans, and $13.3 million from a 101 basis point decrease in the yield on taxable investment securities as result of the decreasing interest rate environment. The discount accretion represents accelerated principal payments on SJB loans and is recorded as a yield adjustment to interest income. As a result, the average yield (TE) on interest-earning assets decreased to 4.61% in 2011, or 59 basis points, from 5.20% in 2010. Average earning assets decreased by $238.4 million, or 3.78%, from $6.31 billion for 2010 compared to $6.07 billion for 2011. Excluding the accelerated accretion, the yield in interest-earning assets would have been 4.34% for 2011 compared to 4.65% for 2010.
The average yield (TE) on earning assets increased to 5.20% for 2010, from 5.13% for 2009, as a result of a decreasing interest rate environment as well as a change in the mix of average earning assets, and a $26.7 million discount accretion on covered SJB loans. Interest income totaled $317.3 million for 2010. This represented a decrease of $6.5 million, or 2.10%, compared to total interest income of $310.8 for 2009. Investments as a percent of earning assets decreased to 31.23% in 2010 from 37.06% in 2009. The yield on investments for 2010 decreased to 4.35% as compared to 4.98% in 2009. Interest discount accretion from SJB covered loans increased the yield on loans by 90 basis points. Excluding the accelerated accretion, the yield in interest-earning assets would have been 4.65% for 2010.
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Cvb Finl has a market cap of $1.16 billion; its shares were traded at around $10.77 with a P/E ratio of 14.2 and P/S ratio of 3.8. The dividend yield of Cvb Finl stocks is 3.1%. Cvb Finl had an annual average earning growth of 1.7% over the past 10 years.
Highlight of Business Operations:
We reported net earnings of $81.7 million for the year ended December 31, 2011. This represented an increase of $18.8 million, or 29.87%, from net earnings of $62.9 million for the year ended December 31, 2010. Net earnings for 2010 increased $2.5 million to $62.9 million, or 3.80%, from net earnings of $65.4 million for the year ended December 31, 2009. Basic and diluted earnings per common share were $0.77 in 2011, compared to $0.59 in 2010, and $0.56 in 2009.The increase in net earnings for 2011 compared to 2010 was primarily the result of a decrease in the provision for credit losses of $54.1 million and a $27.5 million decrease in other operating expenses. These decreases included $15.4 million in prepayment penalties ($3.3 million in 2011 compared to $18.7 million in 2010) and $3.5 million in provision for unfunded commitments, partially offset by a decrease in net interest income of $24.6 million, as described herein, and a decrease in other operating income of $22.9 million. The decrease in other operating income was primarily due to gain on sale of securities of $38.9 million in 2010, partially offset by an increase of $16.0 million in the FDIC loss sharing asset
The decrease in net earnings for 2010 compared to 2009 was primarily the result of an increase in other operating expenses. Significant items included prepaying $350.0 million in borrowings which resulted in $18.7 million in prepayment penalties, a $6.3 million increase in professional fees, and a $6.3 million increase in OREO expenses. In addition, there was a decrease in other operating income due to several causes. Gain on sales of securities increased $10.5 million in 2010 over 2009. However, this was offset by a $15.9 million reduction in the SJB loss-sharing asset in 2010. In addition, 2009 included a $21.1 million gain from the SJB acquisition. These three items resulted in a $26.5 million reduction in other operating income. The provision for credit losses decreased $19.3 million in 2010 from 2009.
Interest income of $269.7 million decreased $47.6 million, or 14.99% compared to total interest income of $317.3 million for 2010. The decrease in interest income was primarily due to a $444.6 million decrease in the average balance of loans for 2011 which decreased interest income by $23.4 million. In addition, there was a $14.1 million decrease in the discount accretion from covered SJB loans, and $13.3 million from a 101 basis point decrease in the yield on taxable investment securities as result of the decreasing interest rate environment. The discount accretion represents accelerated principal payments on SJB loans and is recorded as a yield adjustment to interest income. As a result, the average yield (TE) on interest-earning assets decreased to 4.61% in 2011, or 59 basis points, from 5.20% in 2010. Average earning assets decreased by $238.4 million, or 3.78%, from $6.31 billion for 2010 compared to $6.07 billion for 2011. Excluding the accelerated accretion, the yield in interest-earning assets would have been 4.34% for 2011 compared to 4.65% for 2010.
The average yield (TE) on earning assets increased to 5.20% for 2010, from 5.13% for 2009, as a result of a decreasing interest rate environment as well as a change in the mix of average earning assets, and a $26.7 million discount accretion on covered SJB loans. Interest income totaled $317.3 million for 2010. This represented a decrease of $6.5 million, or 2.10%, compared to total interest income of $310.8 for 2009. Investments as a percent of earning assets decreased to 31.23% in 2010 from 37.06% in 2009. The yield on investments for 2010 decreased to 4.35% as compared to 4.98% in 2009. Interest discount accretion from SJB covered loans increased the yield on loans by 90 basis points. Excluding the accelerated accretion, the yield in interest-earning assets would have been 4.65% for 2010.
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