CVB Financial Corp., the Ontario parent of Citizens Business Bank, said it received a subpoena from the Securities and Exchange Commission, seeking information about how the company handles troubled loans.
CVB Financial received the subpoena from the SEC’s Los Angeles office on July 26, according to a quarterly 10-Q filing by the Ontario-based bank late Monday.
The subpoena requests information about the bank’s loan underwriting guidelines, its allowance for credit losses and the way it calculates its allowance for loan losses, according to the quarterly filing. The federal regulator also wants to know about CVB’s methodology for grading loans and how it makes provisions for loan losses.
The subpoena was issued five days after CVB announced record earnings of $19 million, or 18 cents per share in the second quarter, compared to income of $15.9 million, or 17 cents per share, for the same period last year
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