BofI Holding Upgraded to Strong Buy - Analyst Blog


On Nov 26, Zacks Investment Research upgraded BofI Holding, Inc. ( BOFI ) to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

BofI Holding has been witnessing rising earnings estimates following the announcement of strong fiscal first-quarter 2014 results. Moreover, the bank has delivered a strong year-to-date return of 166.0%.

BofI Holding reported fiscal first-quarter (ended Sep 30) results on Nov 5. Earnings per share of 85 cents were in line with the Zacks Consensus Estimate and increased 26.9% year over year. Results benefited from increased revenues, partially offset by higher operating expenses.

Net interest income rose 25.0% year over year to $28.1 million. Moreover, non-interest income increased 3.2% to $7.0 million. On the flip side, non-interest expense rose 25.9% from the prior-year quarter to $14.5 million.

Further, asset quality continued to show improvement. Nonperforming assets as a percentage of total loans decreased 27 basis points from the prior-year quarter to 0.55%. Provision for loan losses was $0.5 million, significantly down from $2.6 million in the year-ago quarter.

Additionally, in September, BofI Holding completed the acquisition of nearly $173 million in deposits from Principal Bank.

Additionally, following the earnings release, the Zacks Consensus Estimate for fiscal 2014 increased nearly 1% to $3.68 per share. Similarly, for fiscal 2015, the Zacks Consensus Estimate advanced 6.2% to $4.30 per share over the same time period.

Solid year-to-date returns and favorable estimate revisions stimulated the rank upgrade.

Other Stocks to Consider

While we prefer BofI Holding, other stocks carrying a Zacks Rank #1 include SVB Financial Group ( SIVB ), Glacier Bancorp Inc. ( GBCI ) and TriCo Bancshares ( TCBK ).

BOFI HLDG INC (BOFI): Free Stock Analysis Report

GLACIER BANCORP (GBCI): Free Stock Analysis Report

SVB FINL GP (SIVB): Free Stock Analysis Report

TRICO BANCSHRS (TCBK): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: BOFI , GBCI , SIVB , TCBK

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