On Nov 26, Zacks Investment Research upgraded
BofI Holding, Inc.
) 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
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
SVB Financial Group
Glacier Bancorp Inc.
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SVB FINL GP (SIVB): Free Stock Analysis
TRICO BANCSHRS (TCBK): Free Stock Analysis
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