CVB shares jump after sale of bad loans

CVB Financial Corp.’s shares jumped a day after the Ontario-based lender said it had sold its underperforming loans. Shares shot up 9.14 percent to close at $8.84 on Tuesday.

CVB, the parent company to Citizens Business Bank, sold six of seven notes, which were held in connection to the bank’s relationship with its largest borrower, for $41 million in a deal that closed Friday. The undisclosed buyer paid $36 million in cash and $5 million in the form of a note secured by an office building near CVB Financial’s Ontario headquarters.

The borrower ran into trouble paying off its loans to CVB last year, leading CVB to charge off $34 million in loans at the time. The most recent sale added $1.9 million in charge offs from the lending relationship. MarketWatch has reported that Paul Garrett, the chairman of Temecula-based real estate investment firm The Garrett Group LLC, is CVB’s largest borrower.

2 thoughts on “CVB shares jump after sale of bad loans

  1. Thanks for sharing this write-up. Anyway, I just want to confirm if CVB Financial Corp. is allowing bad credit individuals to apply for financing through there service? I want to apply for a loan.

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