On Sep 14, 2013, Zacks Investment Research upgraded
Community Bank System Inc.
) to a Zacks Rank #1 (Strong Buy).
COMMNTY BK SYS (CBU): Free Stock Analysis
EAGLE BCP INC (EGBN): Free Stock Analysis
METRO BANCORP (METR): Free Stock Analysis
S&T BANCORP INC (STBA): Free Stock Analysis
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Why the Upgrade?
Community Bank has been witnessing rising earnings estimates
following the announcement of second-quarter 2013 results.
Further, the company's expected long-term earnings growth rate is
Community Bank reported second-quarter 2013 results on Jul 23.
Earnings per share came in at 52 cents, beating the Zacks
Consensus Estimate of 50 cents. Better-than- expected results
were primarily driven by top-line improvement, partially offset
by higher operating expenses.
While net interest income increased 1.1% from the year-ago
quarter to $58.4 million, non-interest income increased 14.4% to
$27.1 million. However operating expenses rose 10.1% from the
previous-year quarter to $54.4 million.
The quarter also witnessed rise in loans and deposits, which
aided organic growth. Total loans were $3.9 billion, up 10.5%
year over year. Total deposits were $5.7 billion, up 15.5% from
Further, Community Bank's credit quality improved and was
healthier than most of its peers in the reported quarter. Net
charge-offs declined to $0.8 million from $2.1 million in the
year-ago quarter. Nonperforming loans as a percentage of total
loans were 0.62% versus 0.90% as of Jun 30, 2012.
Moreover, during the last 60 days, the Zacks Consensus Estimate
for 2013 increased 3.0% to $2.06 per share. For 2014, the Zacks
Consensus Estimate advanced 4.4% to $2.12 per share over the same
Other Stocks to Consider
Apart from Community Bank, other banks worth considering include
Eagle Bancorp, Inc.
Metro Bancorp, Inc.
S&T Bancorp Inc.
). All these stocks carry the same Zacks Rank as Community