On Aug 13, Zacks Investment Research upgraded
1st Century Bancshares, Inc.
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
1st Century Bancshares has been witnessing rising earnings
estimates following the announcement of strong second-quarter
2013 results. Moreover, this regional bank has delivered earnings
surprises in the last 4 quarters, with an average beat of 41.8%.
1st Century Bancshares reported second-quarter 2013 results on
Aug 7. Earnings per share of 49 cents surpassed the Zacks
Consensus Estimate by 69.0%. The better-than-expected results
benefited from top-line growth, partially offset by a rise in
Net interest income grew 14.3% year over year to $3.9 million.
Moreover, non-interest income jumped 71.1% to $0.8 million. On
the flip side, non-interest expense rose 13.5% from the prior
year quarter to $3.5 million.
Further, as of Jun 30, 2013, total loans surged 32.2% year over
year to $312.3 million. Likewise, total deposits increased 7.1%
to $406.9 million.
Moreover, asset quality depicted a mixed bag. Allowance for loan
losses were $6.6 million, up 36.0% from the prior-year quarter.
However, nonperforming assets declined 82.3% to $1.2 million.
Additionally, following the earnings release, the Zacks Consensus
Estimate for 2013 increased by a penny to 85 cents per share over
the last 30 days. Similarly, for 2014, the Zacks Consensus
Estimate advanced by a penny to 39 cents per share over the same
Positive earnings surprises and favorable estimate revisions
stimulated the rank upgrade.
Other Stocks to Consider
While we prefer 1st Century Bancshares, other stocks carrying a
Zacks Rank #1 include
Pulaski Financial Corporation
Washington Federal Inc.
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WASH FEDL INC (WAFD): Free Stock Analysis
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