CVB Financial reports net income drop
The Coronavirus pandemic has put a dent into CVB Financial Corp.
The Ontario-based entity that is the parent company of Citizens Business Bank reported net income of $38 million for the first quarter of this year, down from $51.6 million from the first quarter of 2019, according to data released Wednesday.
Earnings per share were also down: 27 cents during the quarter that ended March 31, from 37 cents per share exactly one year earlier.
“The Company adopted the Current Expected Credit Losses accounting standard for credit losses on January 1, 2020 and recorded $12 million in provision for credit losses during the quarter as a result of the forecasted economic impact from the coronavirus pandemic,” the earnings report states.
David Brager, who took over as CVB Financial’s chief executive officer last month, sought to reassure shareholders in a statement.
“Our strong capital, liquidity, and credit quality will allow us to continue to support the communities we serve and navigate through this pandemic,” Brager said. “Although our earnings in the first quarter were negatively impacted by the economic uncertainties that have been brought on by this virus … we believe our bank will successfully navigate this crisis just as we have throughout our 45-year history.”
This year’s first quarter was CVB Financial’s 172nd consecutive profitable quarter, according to the data.