UPDATE: D.A. Davidson Reiterates On BBCN Bancorp Following Q3 Review

In a report published Wednesday, D.A. Davidson analyst Gary P. Tenner reiterated a Buy rating on

, but lowered the price target from $20.50 to $18.00. In the report, D.A. Davidson noted, “BBCN reported 3Q14 EPS of $0.27, $0.03 below our estimate and consensus. The company reported lower interest income and higher operating expenses, which were partially offset by a lower-than-expected provision and stronger fee income. Period end loan balances increased 6% annualized with strength in the real estate loans segment. In particular, the hotel/motel, gas station, and mixed use facility loans saw the greatest sequential dollar growth. Total originations of $382 million were above last quarter's production of $344 million; however, 3Q's payoffs and paydowns of $312 million were ~35% higher than the prior quarter. Management noted that near term loan growth may be constrained due to greater CRE participations for risk management purposes.” BBCN Bancorp closed on Tuesday at $14.01.