Citizens Business Bank reports ‘solid loan growth,’ higher earnings in Q3
CVB Financial Corp., the parent company of Citizens Business Bank, saw an increase in net income and asset growth for the quarter ended Sept. 30 when compared to the same period last year.
Headquartered in Ontario, California, Citizens Business Bank has four branches in Ventura County and one in Santa Barbara. The bank had net earnings of $49.8 million for the third quarter of 2021, or 37 cents per share, according to an earnings report released Oct. 20. The bank’s net income was $47.5 million and 35 cents per share in the same quarter of 2020.
The company reported total assets of $16.2 billion at the end of the third quarter, a 17.2% increase from a year earlier.
The third quarter of 2021 included $4 million in recapture of provision for credit losses, primarily because of a modest improvement in the bank’s economic forecast, according to a news release from the bank. The company’s allowance for credit losses was $65.4 million in the third quarter, compared to the pre-pandemic allowance of $68.7 million in late December 2019.
Net interest income before recapture of provision for credit losses was $103.3 million in the third quarter of 2021, and this was “flat” compared to the third quarter of 2020, according to a news release. Total interest income was $104.5 million for the third quarter of 2021, which was 2% lower than the same period last year.
“Our pre-tax, pre-provision earnings remain strong despite the impact of the low-interest rate environment and prevailing lower line utilization rates due to strong customer liquidity,” David Brager, the CEO of Citizens Business Bank, said in a news release. “We believe that our net interest margins will increase in a rising rate environment, and we are seeing the steady improvement in our loan pipelines from previous quarters translate into solid loan growth in the third quarter.”