This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

CVB Financial Corp. Reports Highest Quarterly Profit In Company History

Non-interest expense for the second quarter of 2012 was $28.9 million, a decrease of $1.3 million from $30.2 million for the first quarter of 2012, and an $8.2 million decrease from $37.2 million for the second quarter of 2011.

Our efficiency ratio improved to 44.36% for the second quarter of 2012, compared with 47.31% for the first quarter of 2012, and 54.33% for the second quarter of 2011.

Decreases in non-interest expense and a lower cost of funds were the main reasons for improvement in our efficiency ratio.

Effective June 17, 2012, we redeemed 50% of the Trust Preferred Securities in CVB Statutory Trust I. We paid $20 million for this redemption. The second quarter included $141,000 in interest expense associated with the redeemed debt.

Net Interest Income and Net Interest Margin

Net interest income, before the provision for credit losses, totaled $63.0 million for the three months ending June 30, 2012. Net interest income for the second quarter of 2012 increased $565,000, or 0.91 %, compared to the same period in 2011.

Excluding the impact of the yield adjustment on covered loans, net interest margin (tax equivalent) increased to 3.77% for the second quarter of 2012 from 3.69% for the first quarter of 2012. Total average earning asset yields increased to 4.23 % for the second quarter of 2012 from 4.16% for the first quarter of 2012. Total cost of funds decreased to 0.50% for the second quarter of 2012 from 0.52% for the first quarter of 2012. During the second quarter, we had several non-performing loans that were paid in full resulting in a 10 basis point increase in interest income for the second quarter. Excluding this impact, net interest margin was down slightly quarter-over-quarter, primarily due to the refinancing and runoff of higher yielding loans.

Excluding the impact of the yield adjustment on covered loans, net interest margin (tax equivalent) decreased to 3.77% for the second quarter of 2012 from 3.92% for the second quarter of 2011. Total average earning asset yields decreased to 4.23% for the second quarter of 2012 from 4.49% for the second quarter of 2011. Total cost of funds decreased to 0.50% for the second quarter of 2012 from 0.61% for the second quarter of 2011.

3 of 10

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs