Interest income and fees on loans for the second quarter of 2012 totaled $55.2 million, which included $7.5 million of discount accretion from accelerated principal reductions and improved credit loss experience on covered loans acquired from San Joaquin Bank (“SJB”). This represented an increase of $522,000, or 0.95%, when compared to interest income on loans of $54.7 million, which included $5.7 million of discount accretion on acquired loans, for the same period last year.Loans acquired from the SJB acquisition have been performing better than originally expected. At June 30, 2012, the remaining discount associated with the SJB loans approximates $36.5 million. Based on the current re-forecast of expected cash flows, about $17 million is expected to accrete into interest income over the remaining average lives of the respective pool and individual loans, which approximates 4.5 years and 2.0 years, respectively. The FDIC loss sharing asset of $40.9 million at June 30, 2012 will be reduced by loss claims submitted to the FDIC with the remaining balance amortized on the same basis as the discount, not to exceed its remaining contract life of approximately 2.5 years.
CVB Financial Corp. Reports Highest Quarterly Profit In Company History
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