Exhibit 99.1
Press Release
For Immediate Release
| | | | | |
| | | Contact: | | Christopher D. Myers
President and CEO
(909) 980-4030 |
CVB Financial Corp. Reports Record Second Quarter Earnings for 2011
| | • | | Net income of $21.0 million for the second quarter of 2011 |
| | • | | Diluted earnings per common share were $0.20 for the second quarter and $0.35 year-to-date |
| | • | | Allowance for credit losses represents 3.04% of total CBB non-covered loans & leases |
| | • | | Non-performing loans decreased to $75.1 million, down from $157.0 million at December 31, 2010, and now represent 2.35% of total CBB non-covered loans and leases |
| | • | | Non-interest bearing deposits were $1.89 billion at June 30, 2011, an increase of $193.0 million from $1.70 billion at December 31, 2010 |
Ontario, CA, July 20, 2011-CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business Bank (“the Company”), announced record earnings for the second quarter of 2011.
CVB Financial Corp. reported net income of $21.0 million for the second quarter of 2011. This figure represents the highest earnings in company history for a fiscal quarter. Earnings increased $2.0 million, or 10.64%, when compared with net income of $19.0 million for the second quarter of 2010. Diluted earnings per share were $0.20 for the second quarter of 2011. This was up $0.02, or 11.11%, from diluted earnings per share of $0.18 for the same period last year.
Second quarter 2011 operating results included $5.7 million in interest income from accelerated accretion on loans from our FDIC assisted acquisition of San Joaquin Bank (SJB), a $1.7 million reduction in other operating income from the decrease in the FDIC loss sharing asset, and zero provision for credit losses.
Chris Myers, President and CEO commented, “We are extremely proud of our strong financial results for the quarter. We have made significant progress in reducing our non-performing assets from $162.3 million at December 31, 2010 to $88.8 million at June 30, 2011. In addition, our non-interest bearing deposits continued to grow and now represent over 42% of total deposits.”
Net income for the second quarter of 2011 produced an annualized return on beginning equity of 12.69%, an annualized return on average equity of 12.67% and an annualized return on average assets of 1.31%. The efficiency ratio, excluding the provision for credit losses, was 54.33% for the quarter. Operating expenses as a percentage of average assets were 2.32%.
Net income for the six months ending June 30, 2011 was $37.6 million. This represents an increase of $2.5 million, or 7.13%, when compared with net income of $35.1 million for the same period of 2010. Diluted earnings per share for the six months ending June 30, 2011 were $0.35, an increase of $0.02, or 6.06%, over diluted earnings per share of $0.33 for the same period last year. Operating results for the first six months of 2011 include a provision for credit losses of $7.1 million. Net income for the six months ending June 30, 2011 produced a return on beginning equity of 11.26%, a return on average equity of 11.52% and a return on average assets of 1.17%.
Interest income and fees on loans for the second quarter of 2011 totaled $54.7 million, which includes $5.7 million of discount accretion from accelerated principal reductions on covered loans acquired from SJB. Excluding the discount accretion, interest income and fees on loans would have been $49.0 million for the second quarter of 2011. This represents a decrease of $5.7 million, or 10.42%, when compared to interest income and fees on loans of $54.7 million for the same period last year.
In addition to the yield adjustment to interest income of $5.7 million for the second quarter of 2011, we calculated a $1.7 million net decrease in the FDIC loss sharing asset as a result of lower estimated losses and offset by expenses to be recovered under our loss sharing agreement with the FDIC. In the quarter ended June 30, 2011, we received $7.4 million from the FDIC from previously submitted loss claims. The $1.7 million decrease in the FDIC loss sharing asset is included in other operating income.
Net Interest Income and Net Interest Margin
Net interest income, before the provision for credit losses, totaled $62.4 million for the three months ending June 30, 2011. Net interest income for the second quarter of 2011 decreased $1.8 million, or 2.83%, compared to the same period in 2010.
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Excluding the impact of the yield adjustment on covered loans, net interest margin (tax equivalent) increased from 3.80% for the second quarter of 2010 to 3.92% for the second quarter of 2011. Total average earning asset yields decreased from 5.17% for the second quarter of 2010 to 4.95% for the second quarter of 2011. Total cost of funds decreased from 1.04% for the second quarter of 2010 to 0.61% for the second quarter of 2011.
Assets
The Company reported total assets of $6.46 billion at June 30, 2011. This represents an increase of $23.5 million, or 0.37%, from total assets of $6.44 billion at December 31, 2010. Earning assets (excluding the allowance for loan and lease losses) totaling $6.00 billion decreased $19.2 million, or 0.32%, when compared with earning assets of $6.02 billion at December 31, 2010.
Investment Securities
Investment securities totaled $1.98 billion at June 30, 2011. This is up from $1.79 billion at December 31, 2010. Our investment portfolio continues to perform well. As of June 30, 2011 we had a pretax unrealized gain of $43.4 million of which $20.0 million is in our municipal securities portfolio. We have no preferred stock nor trust preferred securities in our portfolio.
Virtually all of our mortgage-backed securities (“MBS”) are issued by Freddie Mac or Fannie Mae, which have the guarantee of the U.S. Government. We have one private-label mortgage-backed security that is impaired. This Alt-A bond, with a book value of $2.8 million as of June 30, 2011, has had $1.4 million in net impairment losses to date since it was purchased in early 2008, with an $119,000 impairment recorded in the second quarter of 2011.
Our municipal securities, totaling $631.0 million, are diversified among 607 individual issues and located in 30 states, with 6.0%, located within the state of California. Our largest holdings are in New Jersey at 14.6%, Illinois at 12.4% and Michigan at 12.0%. All municipal bond securities are performing.
We continue to reinvest our cash flows from the investment portfolio. During the second quarter we purchased $20.7 million in MBS with an average yield of 2.98% and $13.9 million in municipal securities with an average yield of 5.44%. MBS purchased in the second quarter have an average duration of about 3.5 years as our purchasing strategy is to minimize extension risk as interest rates rise.
Loans
Total loans and leases of $3.53 billion at June 30, 2011 decreased by $216.8 million, or 5.78%, from $3.75 billion at December 31, 2010. We attribute a significant portion of the decrease to the following:
| | • | | $79.3 million to the non-covered dairy and livestock portfolio. |
| | • | | $42.9 million in note sales related to our former largest borrower. |
| | • | | $39.8 million from working down problem assets acquired from SJB. |
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We also experienced a $33.8 million decline in non-covered construction loans and a $18.9 million decline in purchased mortgage pools. The non-covered construction loans and purchased mortgage pools are considered non-core lending niches. Our core lending strategy is focused on commercial & industrial business lending, dairy and livestock lending, agribusiness lending and commercial real estate loans.
We continue to see only moderate loan demand in our market areas as a result of the weakness in the state and local economies. Many of our business owner clients are hesitating to invest in new equipment, buildings, or employees until they see stronger signs of economic recovery and stability.
Deposits & Customer Repurchase Agreements
Total deposits of $4.50 billion and customer repurchase agreements of $535.4 million totaled $5.04 billion at June 30, 2011. This represents a decrease of $21.3 million, or 0.42%, when compared with total deposits and customer repurchase agreements of $5.06 billion at December 31, 2010.
Non-interest bearing deposits were $1.89 billion at June 30, 2011, an increase of $193.0 million or 11.34% from $1.70 billion at December 31, 2010. At June 30, 2011, non-interest bearing deposits were 42.06% of total deposits, up from 37.65% at December 31, 2010 and 35.79% at June 30, 2010.
Our cost of total deposits was 0.20% for the three months ending June 30, 2011, compared to our cost of total deposits of 0.43% for the same period last year. Our cost of total deposits including customer repurchase agreements was 0.22% for the three months ending June 30, 2011 compared to 0.45% for the same period last year.
Borrowings
At June 30, 2011, we had $553.5 million in borrowings, compared to borrowings of $553.4 million at December 31, 2010 and $653.3 million at June 30, 2010. The $99.8 million decrease from June 30, 2010 was primarily due to a $100 million prepayment of FHLB borrowings in the third quarter of 2010.
Asset Quality
The FDIC and the California Department of Financial Institutions completed the field portion of their annual Safety and Soundness Examination in mid-July.
We have separated the discussion of asset quality into two sections: non-covered loans and covered loans. The non-covered loans represent the legacy Citizens Business Bank loans and exclude all loans acquired in the 2009 SJB acquisition. The SJB loans were marked to fair value at the acquisition date and are “covered” loans as defined in the loss sharing agreement with the FDIC.
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Citizens Business Bank Asset Quality (Non-covered loans)
The allowance for credit losses decreased from $105.3 million as of December 31, 2010 to $96.9 million as of June 30, 2011. The decrease was due to net loan charge-offs of $15.4 million, offset by a $7.1 million provision for credit losses during the first six months of 2011. The allowance for credit losses was 3.04% and 3.12% of total non-covered loans and leases outstanding as of June 30, 2011 and December 31, 2010, respectively.
There was zero provision for credit losses for the second quarter of 2011.
We had $75.1 million in non-performing loans at June 30, 2011, or 2.35% of total non-covered loans. This compares to non-performing loans of $157.0 million at December 31, 2010. The non-performing loans for the second quarter are summarized as follows: $24.0 million in commercial construction, $17.8 million in residential mortgages, $24.7 million in commercial real estate, $2.7 million in dairy loans, and $5.9 million in all other loans.
At June 30, 2011, we had $13.7 million in Other Real Estate Owned (“OREO”), an increase of $8.4 million from OREO of $5.3 million at December 31, 2010. At December 31, 2010, we had three OREO properties. During the first six months of 2011, we added nine properties for a total of $11.1 million to OREO. We sold two properties with an OREO value of $2.6 million for cash proceeds of $2.5 million. We now have ten OREO properties.
At June 30, 2011, we had loans delinquent 30 to 89 days of $3.9 million. This compares to delinquent loans of $3.6 million at March 31, 2011 and $9.1 million at December 31, 2010. As a percentage of total loans, delinquencies, excluding non-accruals, were 0.12% at June 30, 2011, 0.11% at March 31, 2011, and 0.27% at December 31, 2010. All loans delinquent 90 days or more were categorized as non-performing.
At June 30, 2011, we had $32.8 million in performing troubled debt restructured loans (“TDRs”), an increase of $19.5 million from performing TDRs of $13.3 million at December 31, 2010. At December 31, 2010, we had five performing TDRs and eleven at June 30, 2011. $17.1 million of the $19.5 million increase in performing TDRs is due to two commercial real estate loans that emerged out of bankruptcy court and are now paying in accordance with the terms approved by the court.
In total, non-performing assets, defined as non-covered non-accrual loans plus OREO, have decreased substantially and were $88.8 million at June 30, 2011, $114.4 million at March 31, 2011 and $162.3 million at December 31, 2010.
We have made substantial progress in reducing our classified loans. At June 30, 2011, classified loans were $445.3 million, $588.7 million at March 31, 2011 and $654.1 million at December 31, 2010.
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San Joaquin Bank Asset Quality (Covered loans)
At June 30, 2011 we had $407.7 million in gross loans from SJB with a carrying value of $334.2 million, compared to $488.8 million of gross loans at December 31, 2010 and $374.0 million in carrying value. Of the gross loans, we have $104.5 million in loans 90 days or more past due as of June 30, 2011, or 25.6%, compared to $133.1 million in loans 90 days or more past due at December 31, 2010. We have 20 properties in OREO totaling $13.3 million compared to 17 properties totaling $11.3 million at December 31, 2010.
CitizensTrust
CitizensTrust has approximately $2.2 billion in assets under administration, including $1.2 billion in assets under management, as of June 30, 2011. This compares with $2.1 billion in assets under administration, including $1.1 billion in assets under management, at December 31, 2010. Revenues from CitizensTrust were $4.4 million and $4.3 million for six months ended June 30, 2011 and 2010, respectively. CitizensTrust provides trust, investment and brokerage related services, as well as financial, estate and business succession planning.
Conference Call
Management will hold a conference call at 8:30 a.m. Pacific time/11:30 a.m. Eastern time on Thursday, July 21st (tomorrow) to discuss the Company’s second quarter 2011 financial results.
To listen to the conference call, please dial (877) 317-6789. A taped replay will be made available approximately one hour after the conclusion of the call and will remain available through July 29, 2011 at 9:00 a.m. To access the replay, please dial (877) 344-7529, passcode 10001742.
The conference call will also be simultaneously webcast over the Internet. Please visit the Company’s website atwww.cbbank.com and click on the CVB Investor tab to access the call from the site. Access the website 15 minutes prior to the call to download any necessary audio software. This webcast will be recorded and available for replay on the Company’s website approximately two hours after the conclusion of the conference call, and will be available on the website for twelve months.
Corporate Overview
CVB Financial Corp. is the holding company for Citizens Business Bank, a financial services company based in Ontario, California. Citizens Business Bank serves 41 cities with 43 business financial centers and five commercial banking centers in the Inland Empire, Los Angeles County, Orange County and the Central Valley areas of California.
Shares of CVB Financial Corp. common stock are listed on the NASDAQ under the ticker symbol of CVBF. For investor information on CVB Financial Corp., visit our Citizens Business Bank website at www.cbbank.com and click on the CVB Investor tab.
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Safe Harbor
Certain matters set forth herein (including the exhibits hereto) constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to the Company’s current business plan and expectations regarding future operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected. These risks and uncertainties include, but are not limited to, local, regional, national and international economic conditions and events and the impact they may have on us and our customers; ability to attract deposits and other sources of liquidity; oversupply of inventory and continued deterioration in values of California real estate, both residential and commercial; a prolonged slowdown in construction activity; changes in the financial performance and/or condition of our borrowers; changes in the level of non-performing assets and charge-offs; ability to repurchase our securities issued to the U.S. Treasury pursuant to its Capital Purchase Program; the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, executive compensation and insurance) with which we and our subsidiaries must comply; changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; inflation, interest rate, securities market and monetary fluctuations; political instability; acts of war or terrorism, or natural disasters, such as earthquakes, or the effects of pandemic flu; the timely development and acceptance of new banking products and services and perceived overall value of these products and services by users; changes in consumer spending, borrowing and savings habits; technological changes; the ability to increase market share and control expenses; changes in the competitive environment among financial and bank holding companies and other financial service providers; continued volatility in the credit and equity markets and its effect on the general economy; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; changes in our organization, management, compensation and benefit plans; the costs and effects of legal and regulatory developments including the resolution of legal proceedings or regulatory or other governmental inquiries and the results of regulatory examinations or reviews; our success at managing the risks involved in the foregoing items and other factors set forth in the Company’s public reports including its Annual Report onForm 10-K for the year ended December 31, 2010, and particularly the discussion of risk factors within that document. The Company does not undertake, and specifically disclaims any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law.
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CVB FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(unaudited)
dollars in thousands
| | | | | | | | | | | | | |
| | | June 30, | | | December 31, | |
| | | 2011 | | | 2010 | | | 2010 | |
Assets: | | | | | | | | | | | | |
| Cash and due from banks | | $ | 102,600 | | | $ | 56,342 | | | $ | 67,279 | |
| Interest-bearing balances due from Federal Reserve | | | 304,131 | | | | 394,704 | | | | 286,769 | |
| Interest-bearing balances due from depository institutions | | | 50,344 | | | | 50,274 | | | | 50,227 | |
| | | | | | | | | | |
| Total cash and cash equivalents | | | 457,075 | | | | 501,320 | | | | 404,275 | |
| | | | | | | | | | | | | |
| Interest-bearing balances due from depository institutions | | | 50,190 | | | | 190 | | | | 50,190 | |
| Investment Securities available-for-sale | | | 1,978,997 | | | | 2,011,492 | | | | 1,791,558 | |
| Investment Securities held-to-maturity | | | 2,814 | | | | 3,173 | | | | 3,143 | |
| Investment in stock of Federal Home Loan Bank (FHLB) | | | 79,744 | | | | 93,962 | | | | 86,744 | |
| | | | | | | | | | | | | |
| Loans held-for-sale | | | 7,341 | | | | 2,554 | | | | 2,954 | |
| Loans and lease finance receivables | | | 3,526,596 | | | | 3,929,321 | | | | 3,747,740 | |
| Less allowance for credit losses | | | (96,895 | ) | | | (118,548 | ) | | | (105,259 | ) |
| | | | | | | | | | |
| Net loans and lease finance receivables | | | 3,429,701 | | | | 3,810,773 | | | | 3,642,481 | |
| | | | | | | | | | |
| Premises and equipment, net | | | 38,019 | | | | 42,585 | | | | 40,921 | |
| Intangibles | | | 7,262 | | | | 10,872 | | | | 9,029 | |
| Goodwill | | | 55,097 | | | | 55,097 | | | | 55,097 | |
| Cash value of life insurance | | | 114,766 | | | | 111,385 | | | | 112,901 | |
| FDIC loss sharing asset | | | 72,007 | | | | 111,992 | | | | 101,461 | |
| Other assets | | | 167,180 | | | | 105,001 | | | | 135,937 | |
| | | | | | | | | | |
TOTAL | | $ | 6,460,193 | | | $ | 6,860,396 | | | $ | 6,436,691 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | |
| Demand Deposits (noninterest-bearing) | | $ | 1,894,558 | | | $ | 1,646,717 | | | $ | 1,701,523 | |
| Investment Checking | | | 340,645 | | | | 448,567 | | | | 384,674 | |
| Savings/MMDA | | | 1,381,712 | | | | 1,307,002 | | | | 1,342,758 | |
| Time Deposits | | | 887,356 | | | | 1,199,204 | | | | 1,089,873 | |
| | | | | | | | | | |
| Total Deposits | | | 4,504,271 | | | | 4,601,490 | | | | 4,518,828 | |
| | | | | | | | | | | | | |
| Demand Note to U.S. Treasury | | | 2,483 | | | | 2,611 | | | | 1,917 | |
| Customer Repurchase Agreements | | | 535,420 | | | | 745,661 | | | | 542,188 | |
| Borrowings | | | 553,526 | | | | 653,254 | | | | 553,390 | |
| Junior Subordinated Debentures | | | 115,055 | | | | 115,055 | | | | 115,055 | |
| Other liabilities | | | 65,753 | | | | 68,341 | | | | 61,458 | |
| | | | | | | | | | |
| Total Liabilities | | | 5,776,508 | | | | 6,186,412 | | | | 5,792,836 | |
Stockholders’ equity: | | | | | | | | | | | | |
| Stockholders’ equity | | | 658,519 | | | | 631,063 | | | | 637,670 | |
| Accumulated other comprehensive income, net of tax | | | 25,166 | | | | 42,921 | | | | 6,185 | |
| | | | | | | | | | |
| | | | 683,685 | | | | 673,984 | | | | 643,855 | |
| | | | | | | | | | |
TOTAL | | $ | 6,460,193 | | | $ | 6,860,396 | | | $ | 6,436,691 | |
| | | | | | | | | | |
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CVB FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCE SHEET
(unaudited)
dollars in thousands
| | | | | | | | | | | | | | | | | |
| | | Three months ended June 30, | | | Six months ended June 30, | |
| | | 2011 | | | 2010 | | | 2011 | | | 2010 | |
Assets: | | | | | | | | | | | | | | | | |
| Cash and due from banks | | $ | 98,325 | | | $ | 101,453 | | | $ | 103,595 | | | $ | 99,038 | |
| Interest-bearing balances due from Federal Reserve | | | 259,171 | | | | 311,154 | | | | 294,887 | | | | 239,809 | |
| Federal funds sold and Interest-bearing balances due from depository institutions | | | 50,307 | | | | 50,032 | | | | 50,278 | | | | 25,430 | |
| | | | | | | | | | | | | |
| Total cash and cash equivalents | | | 407,803 | | | | 462,639 | | | | 448,760 | | | | 364,277 | |
| | | | | | | | | | | | | | | | | |
| Interest-bearing balances due from depository institutions | | | 50,190 | | | | 190 | | | $ | 50,190 | | | $ | 579 | |
| Investment securities available-for-sale | | | 1,966,753 | | | | 2,022,697 | | | | 1,911,914 | | | | 2,059,585 | |
| Investment securities held-to-maturity | | | 2,941 | | | | 3,303 | | | | 2,970 | | | | 3,480 | |
| Investment in stock of Federal Home Loan Bank (FHLB) | | | 81,547 | | | | 95,792 | | | | 84,055 | | | | 96,682 | |
| | | | | | | | | | | | | | | | | |
| Loans held-for-sale | | | 2,639 | | | | 1,055 | | | | 3,047 | | | | 1,596 | |
| Loans and lease finance receivables | | | 3,559,541 | | | | 3,937,448 | | | | 3,618,735 | | | | 3,974,467 | |
| Less allowance for credit losses | | | (102,996 | ) | | | (117,368 | ) | | | (106,415 | ) | | | (115,960 | ) |
| | | | | | | | | | | | | |
| Net loans and lease finance receivables | | | 3,456,545 | | | | 3,820,080 | | | | 3,512,320 | | | | 3,858,507 | |
| | | | | | | | | | | | | |
| Premises and equipment, net | | | 38,933 | | | | 41,907 | | | | 39,738 | | | | 41,671 | |
| Intangibles | | | 7,629 | | | | 11,285 | | | | 8,073 | | | | 11,758 | |
| Goodwill | | | 55,097 | | | | 55,097 | | | | 55,097 | | | | 55,097 | |
| Cash value of life insurance | | | 114,320 | | | | 110,877 | | | | 113,767 | | | | 110,332 | |
| FDIC loss sharing asset | | | 78,275 | | | | 117,467 | | | | 84,183 | | | | 125,261 | |
| Other assets | | | 169,965 | | | | 123,816 | | | | 162,738 | | | | 123,220 | |
| | | | | | | | | | | | | |
TOTAL | | $ | 6,432,637 | | | $ | 6,866,205 | | | $ | 6,476,852 | | | $ | 6,852,045 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | |
| Noninterest-bearing | | $ | 1,852,954 | | | $ | 1,621,507 | | | $ | 1,822,068 | | | $ | 1,598,199 | |
| Interest-bearing | | | 2,637,536 | | | | 2,922,559 | | | | 2,705,203 | | | | 2,913,978 | |
| | | | | | | | | | | | | |
| Total Deposits | | | 4,490,490 | | | | 4,544,066 | | | | 4,527,271 | | | | 4,512,177 | |
| | | | | | | | | | | | | | | | | |
| Other borrowings | | | 1,097,416 | | | | 1,485,896 | | | | 1,115,864 | | | | 1,513,045 | |
| Junior Subordinated Debentures | | | 115,055 | | | | 115,055 | | | | 115,055 | | | | 115,055 | |
| Other liabilities | | | 63,570 | | | | 54,589 | | | | 59,652 | | | | 53,874 | |
| | | | | | | | | | | | | |
| Total Liabilities | | | 5,766,531 | | | | 6,199,606 | | | | 5,817,842 | | | | 6,194,151 | |
Stockholders’ equity: | | | | | | | | | | | | | | | | |
| Stockholders’ equity | | | 657,186 | | | | 633,367 | | | | 651,436 | | | | 628,027 | |
| Accumulated other comprehensive income, net of tax | | | 8,920 | | | | 33,232 | | | | 7,574 | | | | 29,867 | |
| | | | | | | | | | | | | |
| | | | 666,106 | | | | 666,599 | | | | 659,010 | | | | 657,894 | |
| | | | | | | | | | | | | |
TOTAL | | $ | 6,432,637 | | | $ | 6,866,205 | | | $ | 6,476,852 | | | $ | 6,852,045 | |
| | | | | | | | | | | | | |
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CVB FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)
dollar amounts in thousands, except per share
| | | | | | | | | | | | | | | | | |
| | | For the Three Months | | | For the Six Months | |
| | | Ended June 30, | | | Ended June 30, | |
| | | 2011 | | | 2010 | | | 2011 | | | 2010 | |
| Interest Income: | | | | | | | | | | | | | | | | |
| Loans held-for-sale | | $ | 10 | | | $ | 15 | | | $ | 29 | | | $ | 33 | |
| Loans and leases, including fees | | | 48,980 | | | | 54,684 | | | | 98,325 | | | | 109,056 | |
| Accelerated accretion on acquired loans | | | 5,707 | | | | 4,473 | | | | 7,658 | | | | 17,851 | |
| | | | | | | | | | | | | |
| Total loans and leases, including fees | | | 54,697 | | | | 59,172 | | | | 106,012 | | | | 126,940 | |
| Investment securities: | | | | | | | | | | | | | | | | |
| Taxable | | | 10,152 | | | | 14,391 | | | | 18,990 | | | | 30,475 | |
| Tax-advantaged | | | 5,921 | | | | 6,409 | | | | 11,840 | | | | 12,941 | |
| | | | | | | | | | | | | |
| Total investment income | | | 16,073 | | | | 20,800 | | | | 30,830 | | | | 43,416 | |
| Dividends from FHLB Stock | | | 66 | | | | 63 | | | | 131 | | | | 129 | |
| Federal funds sold & Interest-bearing CDs | | | 346 | | | | 238 | | | | 721 | | | | 340 | |
| Total interest income | | | 71,182 | | | | 80,273 | | | | 137,694 | | | | 170,825 | |
| Interest Expense: | | | | | | | | | | | | | | | | |
| Deposits | | | 2,220 | | | | 4,841 | | | | 5,008 | | | | 10,129 | |
| Borrowings and junior subordinated debentures | | | 6,567 | | | | 11,218 | | | | 13,182 | | | | 23,143 | |
| | | | | | | | | | | | | |
| Total interest expense | | | 8,787 | | | | 16,059 | | | | 18,190 | | | | 33,272 | |
| | | | | | | | | | | | | |
| Net interest income before provision for credit losses | | | 62,395 | | | | 64,214 | | | | 119,504 | | | | 137,553 | |
| Provision for credit losses | | | — | | | | 11,000 | | | | 7,068 | | | | 23,200 | |
| | | | | | | | | | | | | |
| Net interest income after provision for credit losses | | | 62,395 | | | | 53,214 | | | | 112,436 | | | | 114,353 | |
| Other Operating Income: | | | | | | | | | | | | | | | | |
| Impairment loss on investment securities | | | (119 | ) | | | — | | | | (119 | ) | | | (98 | ) |
| Loss reclassified to/(from) other comprehensive income | | | — | | | | — | | | | — | | | | (587 | ) |
| | | | | | | | | | | | | |
| Net impairment loss on investment securities recognized in earnings | | | (119 | ) | | | — | | | | (119 | ) | | | (685 | ) |
| Service charges on deposit accounts | | | 4,029 | | | | 4,196 | | | | 7,752 | | | | 8,461 | |
| Trust and investment services | | | 2,259 | | | | 2,209 | | | | 4,412 | | | | 4,327 | |
| Gain on sale of investment securities | | | — | | | | 8,781 | | | | — | | | | 8,781 | |
| Increase (reduction) in FDIC loss sharing asset | | | (1,689 | ) | | | (1,587 | ) | | | (274 | ) | | | (12,170 | ) |
| Other | | | 1,514 | | | | 1,819 | | | | 4,201 | | | | 4,493 | |
| | | | | | | | | | | | | |
| Total other operating income | | | 5,994 | | | | 15,418 | | | | 15,972 | | | | 13,207 | |
| Other operating expenses: | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 18,220 | | | | 17,479 | | | | 35,880 | | | | 35,552 | |
| Occupancy | | | 2,742 | | | | 2,947 | | | | 5,573 | | | | 6,081 | |
| Equipment | | | 1,339 | | | | 1,835 | | | | 2,829 | | | | 3,754 | |
| Professional services | | | 5,028 | | | | 2,881 | | | | 8,637 | | | | 5,688 | |
| Amortization of intangible assets | | | 866 | | | | 939 | | | | 1,767 | | | | 1,889 | |
| Provision for unfunded commitments | | | — | | | | 450 | | | | 732 | | | | 1,700 | |
| OREO Expense | | | 1,671 | | | | 654 | | | | 2,776 | | | | 667 | |
| Other | | | 7,289 | | | | 14,262 | | | | 15,266 | | | | 22,038 | |
| | | | | | | | | | | | | |
| Total other operating expenses | | | 37,155 | | | | 41,447 | | | | 73,460 | | | | 77,369 | |
| | | | | | | | | | | | | |
| Earnings before income taxes | | | 31,234 | | | | 27,185 | | | | 54,948 | | | | 50,191 | |
| Income taxes | | | 10,196 | | | | 8,170 | | | | 17,310 | | | | 15,057 | |
| | | | | | | | | | | | | |
| Net earnings | | | 21,038 | | | | 19,015 | | | | 37,638 | | | | 35,134 | |
| Allocated to restricted stock | | | 82 | | | | 64 | | | | 148 | | | | 119 | |
| | | | | | | | | | | | | |
| Net earnings allocated to common shareholders | | $ | 20,956 | | | $ | 18,951 | | | $ | 37,490 | | | $ | 35,015 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Basic earnings per common share | | $ | 0.20 | | | $ | 0.18 | | | $ | 0.35 | | | $ | 0.33 | |
| | | | | | | | | | | | | |
| Diluted earnings per common share | | $ | 0.20 | | | $ | 0.18 | | | $ | 0.35 | | | $ | 0.33 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Cash dividends per common share | | $ | 0.085 | | | $ | 0.085 | | | $ | 0.17 | | | $ | 0.17 | |
| | | | | | | | | | | | | |
- 10 -
CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
| | | | | | | | | | | | | | | | | |
| | | Three months ended June 30, | | | Six months ended June 30, | |
| | | 2011 | | | 2010 | | | 2011 | | | 2010 | |
| Interest income — (Tax-Effected) (te) | | $ | 73,652 | | | $ | 82,915 | | | $ | 142,634 | | | $ | 176,150 | |
| Interest Expense | | | 8,787 | | | | 16,059 | | | | 18,190 | | | | 33,272 | |
| | | | | | | | | | | | | |
| Net Interest income — (te) | | $ | 64,865 | | | $ | 66,856 | | | $ | 124,444 | | | $ | 142,878 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Return on average assets, annualized | | | 1.31 | % | | | 1.11 | % | | | 1.17 | % | | | 1.03 | % |
| Return on average equity, annualized | | | 12.67 | % | | | 11.44 | % | | | 11.52 | % | | | 10.77 | % |
| Efficiency ratio | | | 54.33 | % | | | 60.39 | % | | | 57.21 | % | | | 60.65 | % |
| Yield on average earning assets | | | 4.95 | % | | | 5.17 | % | | | 4.78 | % | | | 5.75 | % |
| Cost of deposits | | | 0.20 | % | | | 0.43 | % | | | 0.22 | % | | | 0.45 | % |
| Cost of deposits and customer repurchase agreements | | | 0.22 | % | | | 0.45 | % | | | 0.24 | % | | | 0.48 | % |
| Cost of funds | | | 0.61 | % | | | 1.04 | % | | | 0.63 | % | | | 1.08 | % |
| Net interest margin (te) | | | 4.37 | % | | | 4.18 | % | | | 4.17 | % | | | 4.67 | % |
| Net interest margin (te) excluding discount | | | 3.92 | % | | | 3.80 | % | | | 3.85 | % | | | 3.97 | % |
| | | | | | | | | | | | | | | | | |
| Weighted average shares outstanding | | | | | | | | | | | | | | | | |
| Basic | | | 105,659,326 | | | | 105,988,971 | | | | 105,655,290 | | | | 105,961,239 | |
| Diluted | | | 105,763,588 | | | | 106,272,867 | | | | 105,733,814 | | | | 106,231,807 | |
| Dividends declared | | $ | 9,017 | | | $ | 9,041 | | | $ | 18,034 | | | $ | 18,076 | |
| Dividend payout ratio | | | 42.86 | % | | | 47.55 | % | | | 47.91 | % | | | 51.45 | % |
| | | | | | | | | | | | | | | | | |
| Number of shares outstanding-EOP | | | 106,084,192 | | | | 106,435,754 | | | | | | | | | |
| Book value per share | | $ | 6.44 | | | $ | 6.33 | | | | | | | | | |
| Tangible Book value per share | | $ | 5.86 | | | $ | 5.71 | | | | | | | | | |
| | | | | | | | | |
| | | June 30, | |
| | | 2011 | | | 2010 | |
(Non-covered loans) | | | | | | | | |
| Non-performing Assets (dollar amount in thousands): | | | | | | | | |
| Non-accrual loans | | $ | 75,050 | | | $ | 82,850 | |
| Loans past due 90 days or more and still accruing interest | | | — | | | | — | |
| Other real estate owned (OREO), net | | | 13,718 | | | | 15,001 | |
| | | | | | | |
| Total non-performing assets | | $ | 88,768 | | | $ | 97,851 | |
| | | | | | | |
| | | | | | | | | |
| Percentage of non-performing assets to total loans outstanding and OREO | | | 2.77 | % | | | 2.78 | % |
| | | | | | | | | |
| Percentage of non-performing assets to total assets | | | 1.37 | % | | | 1.43 | % |
| | | | | | | | | |
| Allowance for loan losses to non-performing assets | | | 109.16 | % | | | 121.15 | % |
| | | | | | | | | |
| Net Charge-offs to Average loans | | | 0.47 | % | | | 0.38 | % |
| | | | | | | | | |
| Allowance for Credit Losses: | | | | | | | | |
| Beginning Balance | | $ | 105,259 | | | $ | 108,924 | |
| Total Loans Charged-Off | | | (16,644 | ) | | | (13,771 | ) |
| Total Loans Recovered | | | 1,212 | | | | 195 | |
| | | | | | | |
| Net Loans Charged-off | | | (15,432 | ) | | | (13,576 | ) |
| Provision Charged to Operating Expense | | | 7,068 | | | | 23,200 | |
| | | | | | | |
| Allowance for Credit Losses at End of period | | $ | 96,895 | | | $ | 118,548 | |
| | | | | | | |
- 11 -
CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(in thousands, except per share data)
(unaudited)
Quarterly Common Stock Price
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2011 | | | 2010 | | | 2009 | |
| Quarter End | | High | | | Low | | | High | | | Low | | | High | | | Low | |
| March 31, | | $ | 9.32 | | | $ | 7.83 | | | $ | 10.89 | | | $ | 8.44 | | | $ | 12.11 | | | $ | 5.31 | |
| June 30, | | $ | 9.94 | | | $ | 8.18 | | | $ | 11.85 | | | $ | 9.00 | | | $ | 7.77 | | | $ | 5.69 | |
| September 30, | | | | | | | | | | $ | 10.99 | | | $ | 6.61 | | | $ | 8.70 | | | $ | 4.90 | |
| December 31, | | | | | | | | | | $ | 9.09 | | | $ | 7.30 | | | $ | 9.00 | | | $ | 6.93 | |
Quarterly Consolidated Statements of Earnings
| | | | | | | | | | | | | | | | | | | | | |
| | | 2Q | | | 1Q | | | 4Q | | | 3Q | | | 2Q | |
| | | 2011 | | | 2011 | | | 2010 | | | 2010 | | | 2010 | |
Interest income | | | | | | | | | | | | | | | | | | | | |
| Loans, including fees | | $ | 54,697 | | | $ | 51,315 | | | $ | 55,621 | | | $ | 58,165 | | | $ | 59,172 | |
| Investment securities and other | | | 16,485 | | | | 15,197 | | | | 14,370 | | | | 18,308 | | | | 21,101 | |
| | | | | | | | | | | | | | | | |
| | | | 71,182 | | | | 66,512 | | | | 69,991 | | | | 76,473 | | | | 80,273 | |
Interest expense | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | 2,220 | | | | 2,788 | | | | 3,814 | | | | 4,310 | | | | 4,841 | |
| Other borrowings | | | 6,567 | | | | 6,615 | | | | 7,028 | | | | 9,548 | | | | 11,218 | |
| | | | | | | | | | | | | | | | |
| | | | 8,787 | | | | 9,403 | | | | 10,842 | | | | 13,858 | | | | 16,059 | |
| Net interest income before provision for credit losses | | | 62,395 | | | | 57,109 | | | | 59,149 | | | | 62,615 | | | | 64,214 | |
| Provision for credit losses | | | — | | | | 7,068 | | | | 12,700 | | | | 25,300 | | | | 11,000 | |
| | | | | | | | | | | | | | | | |
| Net interest income after provision for credit losses | | | 62,395 | | | | 50,041 | | | | 46,449 | | | | 37,315 | | | | 53,214 | |
| | | | | | | | | | | | | | | | | | | | | |
| Non-interest income | | | 5,994 | | | | 9,978 | | | | 7,188 | | | | 36,719 | | | | 15,418 | |
| Non-interest expenses | | | 37,155 | | | | 36,305 | | | | 41,805 | | | | 49,318 | | | | 41,447 | |
| | | | | | | | | | | | | | | | |
| Earnings before income taxes | | | 31,234 | | | | 23,714 | | | | 11,832 | | | | 24,716 | | | | 27,185 | |
| Income taxes | | | 10,196 | | | | 7,114 | | | | 1,958 | | | | 6,789 | | | | 8,170 | |
| | | | | | | | | | | | | | | | |
Net earnings | | | 21,038 | | | | 16,600 | | | | 9,874 | | | | 17,927 | | | | 19,015 | |
| Allocated to restricted stock | | | 82 | | | | 66 | | | | 41 | | | | 58 | | | | 64 | |
| | | | | | | | | | | | | | | | |
Net earnings allocated to common shareholders | | $ | 20,956 | | | $ | 16,534 | | | $ | 9,833 | | | $ | 17,869 | | | $ | 18,951 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Basic earning per common share | | $ | 0.20 | | | $ | 0.16 | | | $ | 0.09 | | | $ | 0.17 | | | $ | 0.18 | |
| Diluted earnings per common share | | $ | 0.20 | | | $ | 0.16 | | | $ | 0.09 | | | $ | 0.17 | | | $ | 0.18 | |
| | | | | | | | | | | | | | | | | | | | | |
| Cash dividends per common share | | $ | 0.085 | | | $ | 0.085 | | | $ | 0.085 | | | $ | 0.085 | | | $ | 0.085 | |
| | | | | | | | | | | | | | | | | | | | | |
| Dividends Declared | | $ | 9,017 | | | $ | 9,017 | | | $ | 9,016 | | | $ | 9,011 | | | $ | 9,041 | |
- 12 -
CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(in thousands)
(unaudited)
Distribution of Loan Portfolio
| | | | | | | | | | | | | | | | | | | | | |
| | | 6/30/2011 | | | 3/31/2011 | | | 12/31/2010 | | | 9/30/2010 | | | 6/30/2010 | |
| | | | | | | | | | | | | | | | | | | | | |
| Commercial and Industrial | | $ | 500,746 | | | $ | 490,316 | | | $ | 499,986 | | | $ | 509,502 | | | $ | 513,483 | |
| Real Estate: | | | | | | | | | | | | | | | | | | | | |
| Construction | | | 119,637 | | | | 169,562 | | | | 223,478 | | | | 280,756 | | | | 305,724 | |
| Commercial Real Estate | | | 2,237,975 | | | | 2,255,247 | | | | 2,272,270 | | | | 2,280,861 | | | | 2,321,257 | |
| SFR Mortgage | | | 201,457 | | | | 210,445 | | | | 224,325 | | | | 238,179 | | | | 254,499 | |
| Consumer | | | 59,496 | | | | 61,622 | | | | 67,371 | | | | 71,487 | | | | 73,342 | |
| Municipal lease finance receivables | | | 119,792 | | | | 122,897 | | | | 129,128 | | | | 149,584 | | | | 154,042 | |
| Auto and equipment leases | | | 16,998 | | | | 17,399 | | | | 17,982 | | | | 20,658 | | | | 23,754 | |
| Dairy and Livestock | | | 296,801 | | | | 325,052 | | | | 376,143 | | | | 359,778 | | | | 378,785 | |
| Agribusiness | | | 52,528 | | | | 49,664 | | | | 57,304 | | | | 61,206 | | | | 69,663 | |
| | | | | | | | | | | | | | | | |
| Gross Loans | | | 3,605,430 | | | | 3,702,204 | | | | 3,867,987 | | | | 3,972,011 | | | | 4,094,549 | |
| Less: | | | | | | | | | | | | | | | | | | | | |
| Purchase Accounting Discount | | | (73,449 | ) | | | (98,117 | ) | | | (114,763 | ) | | | (143,752 | ) | | | (159,393 | ) |
| Deferred net loan fees | | | (5,385 | ) | | | (5,640 | ) | | | (5,484 | ) | | | (5,457 | ) | | | (5,835 | ) |
| Allowance for credit losses | | | (96,895 | ) | | | (101,067 | ) | | | (105,259 | ) | | | (105,289 | ) | | | (118,548 | ) |
| | | | | | | | | | | | | | | | |
| Net Loans | | $ | 3,429,701 | | | $ | 3,497,380 | | | $ | 3,642,481 | | | $ | 3,717,513 | | | $ | 3,810,773 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Covered Loans | | $ | 334,225 | | | $ | 348,759 | | | $ | 374,012 | | | $ | 403,822 | | | $ | 424,377 | |
| | | | | | | | | | | | | | | | |
| Non-covered Loans | | | 3,095,476 | | | | 3,148,621 | | | | 3,268,469 | | | | 3,313,691 | | | | 3,386,396 | |
| Total Net Loans | | $ | 3,429,701 | | | $ | 3,497,380 | | | $ | 3,642,481 | | | $ | 3,717,513 | | | $ | 3,810,773 | |
| | | | | | | | | | | | | | | | |
- 13 -
CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(in thousands)
(unaudited)
Non-Performing Assets & Delinquency Trends
(Non-Covered Loans)
| | | | | | | | | | | | | | | | | | | | | |
| | | June 30, | | | March 31, | | | December 31, | | | September 30, | | | June 30, | |
| | | 2011 | | | 2011 | | | 2010 | | | 2010 | | | 2010 | |
Non-Performing Loans | | | | | | | | | | | | | | | | | | | | |
| Residential Construction and Land | | $ | 1,080 | | | $ | 4,001 | | | $ | 4,090 | | | $ | 5,085 | | | $ | 2,789 | |
| Commercial Construction and Land | | | 23,953 | | | | 39,976 | | | | 60,591 | | | | 71,428 | | | | 39,114 | |
| Residential Mortgage | | | 17,786 | | | | 18,425 | | | | 17,800 | | | | 14,543 | | | | 12,638 | |
| Commercial Real Estate | | | 24,731 | | | | 34,950 | | | | 64,859 | | | | 56,330 | | | | 20,639 | |
| Commercial and Industrial | | | 4,649 | | | | 7,542 | | | | 3,936 | | | | 6,067 | | | | 7,527 | |
| Dairy & Livestock | | | 2,672 | | | | 2,996 | | | | 5,207 | | | | 5,176 | | | | — | |
| Consumer | | | 179 | | | | 260 | | | | 537 | | | | 242 | | | | 143 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 75,050 | | | $ | 108,150 | | | $ | 157,020 | | | $ | 158,871 | | | $ | 82,850 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
% of Total Loans | | | 2.35 | % | | | 3.33 | % | | | 4.65 | % | | | 4.65 | % | | | 2.36 | % |
| | | | | | | | | | | | | | | | | | | | | |
Past Due 30-89 Days | | | | | | | | | | | | | | | | | | | | |
| Residential Construction and Land | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| Commercial Construction and Land | | | | | | | 1,492 | | | | — | | | | — | | | | 9,093 | |
| Residential Mortgage | | | 460 | | | | 993 | | | | 2,597 | | | | 2,779 | | | | 2,552 | |
| Commercial Real Estate | | | 2,590 | | | | 898 | | | | 3,194 | | | | 1,234 | | | | 1,966 | |
| Commercial and Industrial | | | 740 | | | | 239 | | | | 3,320 | | | | 2,333 | | | | 634 | |
| Dairy & Livestock | | | — | | | | — | | | | — | | | | 1,406 | | | | — | |
| Consumer | | | 91 | | | | 9 | | | | 29 | | | | 494 | | | | 139 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 3,881 | | | $ | 3,631 | | | $ | 9,140 | | | $ | 8,246 | | | $ | 14,384 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
% of Total Loans | | | 0.12 | % | | | 0.11 | % | | | 0.27 | % | | | 0.24 | % | | | 0.41 | % |
| | | | | | | | | | | | | | | | | | | | | |
OREO | | | | | | | | | | | | | | | | | | | | |
| Residential Construction and Land | | $ | — | | | $ | — | | | $ | — | | | $ | 11,113 | | | $ | 11,113 | |
| Commercial Construction and Land | | | 7,117 | | | | 2,709 | | | | 2,709 | | | | 2,709 | | | | — | |
| Commercial Real Estate | | | 6,314 | | | | 3,322 | | | | 2,581 | | | | 3,220 | | | | 3,220 | |
| Commercial and Industrial | | | — | | | | 209 | | | | — | | | | — | | | | 668 | |
| Residential Mortgage | | | 287 | | | | — | | | | — | | | | 345 | | | | — | |
| Consumer | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 13,718 | | | $ | 6,240 | | | $ | 5,290 | | | $ | 17,387 | | | $ | 15,001 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Total Non-Performing, Past Due & OREO | | $ | 92,649 | | | $ | 118,021 | | | $ | 171,450 | | | $ | 184,504 | | | $ | 112,235 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
% of Total Loans | | | 2.90 | % | | | 3.63 | % | | | 5.08 | % | | | 5.40 | % | | | 3.20 | % |
- 14 -
Net interest income and net interest margin reconciliations (Non-GAAP)
We use certain non-GAAP financial measures to provide supplemental information regarding our performance. The second quarter of 2011 net interest income and net interest margin include a yield adjustment of $5.7 million from discount accretion on covered loans. We believe that presenting the net interest income and net interest margin excluding the yield adjustment provides additional clarity to the users of financial statements regarding core net interest income and net interest margin.
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three months ended | | | Six months ended | |
| | | June 30, 2011 | | | June 30, 2011 | |
| | | (amounts in thousands) | |
| | | Average | | | | | | | | | | | Average | | | | | | | |
| | | Balance | | | Interest | | | Yield | | | Volume | | | Interest | | | Yield | |
| Total interest-earning assets | | $ | 5,974,745 | | | $ | 71,182 | | | | 4.95 | % | | $ | 6,017,731 | | | $ | 137,694 | | | | 4.78 | % |
| Accelerated accretion on acquired loans | | | 92,614 | | | | (5,707 | ) | | | | | | | 102,727 | | | | (7,658 | ) | | | | |
| | | | | | | | | | | | | | | | | | | |
| Total interest-earning assets, excluding SJB loan discount and yield adjustment | | $ | 6,067,359 | | | $ | 65,475 | | | | 4.49 | % | | $ | 6,120,458 | | | $ | 130,036 | | | | 4.44 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income and net interest margin (TE) | | | | | | $ | 64,865 | | | | 4.37 | % | | | | | | $ | 124,444 | | | | 4.17 | % |
| Yield adjustment to interest income from discount accretion | | | | | | | (5,707 | ) | | | | | | | | | | | (7,658 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income and net interest margin (TE), excluding yield adjustment | | | | | | $ | 59,158 | | | | 3.92 | % | | | | | | $ | 116,786 | | | | 3.85 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
- 15 -
