Improved asset quality and sharp decline overhead expenses in the second quarter powered CVB Financial (CVBF) in Ontario, Calif., to its most-profitable quarter in its 38-year history.
The $6.5 billion-asset company said late Wednesday that it earned $23.6 million in the quarter, up 12% from a year earlier. Its earnings per share of 23 cents were two cents higher than estimates by analysts polled by Thomson Reuters.
Noninterest expenses totaled $28.9 million, down 22% from a year earlier, as the costs relating to salaries and employee benefits and professional services declined. The cost cuts, combined with reduced funding costs, helped lower the company's efficiency ratio from 54.33% a year earlier to 44.36% at June 30.
CVB's nonperforming loans totaled $61.9 million, an almost 18% drop year over year. Delinquent loans 30 to 89 days past due fell almost 68% to $1.3 million.