CVB Financial Corp. of Ontario, Calif., has updated shareholders on changes to its loan portfolio and debt obligations in the third quarter amid an investigation by the Securities and Exchange Commission.
The parent company of Citizens Business Bank said Thursday that "significant" developments included a $28 million gain from the sale of $537 million in mortgage-backed securities and collateralized mortgage obligations as well as prepayment of $150 million in repurchase agreement debt with another financial institution.
In its loan portfolio, CVB said it charged off $34 million and placed $48 million in loans from its largest borrower into its nonperforming portfolio, resulting in higher reserves. CVB disclosed in its second-quarter earnings report that the SEC issued a subpoena in July largely related to how CVB recognized troubled loans and disclosed that to investors.
Also, CVB said it expects to report third-quarter after-tax earnings of $17 million to $20 million, or 16 cents to 19 cents a share.
