CVB Financial Q3 net income rises on higher net interest income after Heritage acquisition

Overview

• California bank's Q3 net income rose yr/yr, driven by Heritage acquisition impact

• Q3 diluted EPS increased 16% yr/yr

• Company repurchased $17.5 mln in common stock during Q3

Outlook

• Company says annual effective tax rate may vary with tax-advantaged income levels

• Company remains focused on integration and expanding banking model across California

Result Drivers

• HERITAGE ACQUISITION - Co said net interest income growth was largely due to full quarter impact of Heritage acquisition

• NIM EXPANSION - Co attributed net interest income growth to higher net interest margin and increased average earning assets

• LOWER ACQUISITION EXPENSES - Co said reduced acquisition-related expenses contributed to improved profitability

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for CVB Financial Corp is $26.00, about 17.3% above its October 20 closing price of $22.16

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 14 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)