CVB Financial Corp. (CVBF), the holding company for Citizens Business Bank, on Wednesday reported a profit for the fourth quarter that more than doubled from last year on lower operating expenses and the absence of a provision for credit losses. Earnings per share matched analysts' expectations.
The company's net earnings for the fourth quarter rose to $21.65 million or $0.21 per share from $9.83 million or $0.09 per share in the year-ago period. On average, twelve analysts polled by Thomson Reuters expected the company to earn $0.21 per share for the quarter. Analysts' estimates typically exclude special items.
In late December 2011, Citizens Business Bank prepaid $100 million in Federal Home Loan Bank or FHLB debt and took a $3.3 million charge.
Net interest income for the quarter, before provision for credit losses, declined 6.7 percent to $55.20 million from $59.15 million in the prior-year quarter due to a decrease in interest income, partially offset by a $2.6 million decline in interest expense. Net interest margin was 3.71 percent, down from 4.03 percent last year.
Total other operating income increased to $10.73 million from $7.19 million in year-ago quarter. Analysts had a consensus revenue estimate for the quarter of $58.94 million.
The company did not record any provision for credit losses in the latest quarter, compared to provision of $12.70 million in the year-ago period.
Total other operating expenses in the quarter was $34.71 million, down from $41.81 million in the same period last year.
For fiscal year 2011, CVB Financial's net income rose to $81.44 million or $0.77 per share from $62.72 million or $0.59 per share in the previous year. Analysts expected the company to report earnings of $0.77 per share for the year.
The company noted that 2011 was the most profitable year in its history. Previously, 2006 was the company's most profitable year with $70.6 million in net profit.
Net interest income for the year, before the provision for credit losses, declined to $234.68 million from $259.32 million last year. Total other operating income was $34.22 million, down from $57.11 million a year ago. Analysts expected revenues of $238.99 million for the year.
The allowance for credit losses decreased to $93.96 million from $105.26 million in the prior year. The decrease was due to net loan charge-offs totaling $18.4 million versus a provision for credit losses of $7.07 million in the previous year. In 2010, the company experienced net charge-offs of $65.5 million versus a provision for credit losses of $61.20 million.
As at December 31, 2011, total loans and leases declined 7.15 percent from the prior year to $3.48 billion. Deposits and customer repurchase agreements at year-end increased 10.5 percent from the prior year to $5.11 billion.
CVB closed Wednesday's trading at $11.21, up $0.33 or 3.03 percent on a volume of 1.25 million shares.
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