On Nov 6, Zacks Investment Research upgraded
Capital City Bank Group Inc.
) to a Zacks Rank #1 (Strong Buy).
AMER NATL BNKSH (AMNB): Free Stock Analysis
CAPITAL CITY BK (CCBG): Free Stock Analysis
SIMMONS FIRST A (SFNC): Free Stock Analysis
S Y BANCORP INC (SYBT): Free Stock Analysis
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Why the Upgrade?
Capital City Bank has been witnessing rising earnings estimates
on the back of strong third-quarter 2013 results. The long-term
expected earnings growth rate for this stock is 6%.
Capital City Bank reported its third-quarter results on Oct 29
with earnings per share of 9 cents, beating the Zacks Consensus
Estimate of 8 cents by 12.5% and the year-ago earnings of 7 cents
Robust results for the reported quarter were primarily aided by
substantial reduction in provision for loan losses. Moreover,
Capital City Bank recorded a strong capital position and a marked
improvement in its credit quality.
As of Sep 30, 2013, the ratio of nonperforming assets to total
assets reduced to 3.77% from 5.10% in the prior-year quarter. The
ratio of allowance to total loans decreased 22 basis points year
over year to 1.75%.
Reduced net interest income, which declined 8.6% year over year
to $19.2 million and rise in non-interest expenses (up 0.7% year
over year) were the headwinds.
For Capital City Bank, the Zacks Consensus Estimate for 2013
jumped 3.3% to 31 cents per share over the last 30 days. For
2014, the Zacks Consensus Estimate surged 2.4% to 43 cents per
share over the same time frame.
Other Stocks to Consider
Besides Capital City Bank, other Southeast banks that are worth
Simmons First National Corp.
American National Bankshares Inc.
SY Bancorp Inc.
). All the 3 companies carry a Zacks Rank #1.