Shares of CVB Financial Corp. (CVBF - Free Report) hit a new 52-week high of $15.55 during the second half of the trading session on Nov 22. However, the stock closed the session a notch lower at $15.54, which reflects a year-to-date return of roughly 47%. The trading volume for the session was 351,950 shares.
Despite the strong price appreciation, this Zacks Rank #2 (Buy) West bank still has considerable upside left, given its positive estimate revision over the last 30 days and expected year-over-year earnings growth of 8.0% for 2013.
CVB Financial’s impressive price performance reflects its strong third-quarter 2013 results that comprise a positive earnings surprise of 9.5%.
On Oct 23, CVB Financial declared third-quarter earnings of 23 cents per share, beating the Zacks Consensus Estimate of 21 cents. Better-than-expected results were driven by an increase in non interest income along with lower operating expenses, partially offset by a decline in net interest income.
CVB Financial’s total non interest expenses were $25.7 million, down 48.6% from the prior-year quarter figure of $50.0 million. The company witnessed a year-over-year increase in loan and deposits as well.
Moreover, CVB Financial’s credit quality reflected steady improvement. Total non-performing loans declined 25.0% year over year to $49.5 million. Allowance for loan losses were $80.7 million compared with $92.1 million in the prior-year quarter.
Estimate Revisions Show Potency
In the last 30 days, the Zacks Consensus Estimate for 2013 increased 2.3% to 89 cents per share. For 2014, the Zacks Consensus Estimate advanced 1.1% to 94 cents per share over the same time frame.
Better-ranked banks in the same region include Glacier Bancorp Inc. (GBCI - Free Report) , Preferred Bank (PFBC - Free Report) and Sierra Bancorp (BSRR - Free Report) . All these stocks carry a Zacks Rank #1 (Strong Buy).