Jul. 21--The Ontario-based parent of Citizens Business Bank is joining several large national and regional banks in returning money to the federal government.

CVB Financial Corp. announced Monday it has initiated an offering of about $115 million of its common stock. Subject to approval by the U.S. Treasury and banking regulators, CVB intends to use proceeds to buy back much of the preferred stock sold late last year to the federal government, as part of a nationwide capital purchase program, according to a statement.

The U.S. Treasury purchased $130 million of preferred stock from CVB Financial Corp. on Dec. 5, as part of the Troubled Asset Relief Program, or TARP.

The Treasury entered into agreements mostly with relatively healthy banks, as part of a $700 billion program aimed at boosting capital and encouraging banks to make loans.

If its request is approved, CVB would join at least 10 national and regional banks to receive the government's OK to return the money. Those include JP Morgan Chase, US Bancorp and American Express.

Michael Natzic, a community banking specialist in the Big Bear Lake office of brokerage firm Stone & Youngberg, said several banks have decided in recent months that they don't need the safety net that the program initially provided them.

Also, some banks have chafed at the dividend requirement -- initially 5 percent per year -- that came with accepting the funds.

Natzic said CVB, the largest Inland-based financial institution with more than $6.4 billion in assets, has fared relatively well despite the current economic climate.

"This makes sense for them," he said of the planned return of funds.

CVB officials could not immediately be reached for comment. Last week the company announced second-quarter earnings of $15.9 million, down 7.5 percent from a year ago but up 20 percent from the prior quarter.

-----

To see more of The Press-Enterprise or to subscribe to the newspaper, go to http://www.pe.com.

Copyright (c) 2009, The Press-Enterprise, Riverside, Calif.

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

NASDAQ-NMS:CVBF, NYSE:USB, NYSE:AXP,

A service of YellowBrix, Inc.