CVB Financial Posts Higher Earnings Following Acquisition

CVB Financial in Ontario, Calif., reported a slight uptick in third-quarter earnings after loans and expenses increased from its acquisition of American Security Bank.

The $7.4 billion-asset company said Thursday that its quarterly profit increased 0.4%, to $24.3 million, from a year earlier.

Loans and leases increased more than 7%, to $3.7 billion, from a year earlier, and included roughly $236 million of loans from the acquisition of American Security Bank in May. Net interest income before the provision for loan losses rose more than 13%, to $61.2 million, as investment income soared 40%, to $17.6 million. The net interest margin compressed by seven basis points, to 3.61%, from a year earlier.

Noninterest income almost doubled to $8 million, reflecting gains from trust and investment services and service charges on deposits.

Noninterest expenses increased more than 26%, to $32.5 million, partly driven by $640,000 in non-recurring costs related to the acquisition of American Security Bank. CVB also recorded higher costs tied to professional services, salaries and employee benefits, and occupancy and equipment.