Community Trust Bancorp Upped to Strong Buy - Analyst Blog


On Oct 5, Zacks Investment Research upgraded Community Trust Bancorp Inc. ( CTBI ) to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

Community Trust Bancorp has been witnessing rising earnings estimates on the back of strong second-quarter 2013 results and solid capital deployment activities. Moreover, this well-known commercial and personal banking along with trust and wealth management services provider recorded a year-to-date return of 18.6%. The year-over-year expected earnings growth rate for this stock is 3.9%.

Community Trust Bancorp reported its second-quarter results on Jul 17 with earnings per share of 76 cents, beating the Zacks Consensus Estimate of 74 cents by 2.7% but lagging the year-ago earnings of 79 cents by 3.8%. Better-than-expected results were driven by higher top line. The company maintained a strong capital position with solid loans and deposit balances during the quarter.

Net interest income surged 3.1% year over year to $33.3 million. This upsurge reflected lower interest expenses. Non-interest income increased 10.8% to $13.3 million, as compared with the prior-year period. Higher gains on sale of loans and elevated deposit service charges were the primary reasons for the upswing.

However, on the downside, non-interest expenses surged 7.9% year over year to $26.0 million. Higher personnel costs along with elevated occupancy and equipment expenses mainly drove the increase.

In Jul 2013, Community Trust Bancorp announced a 1.6% increase in its quarterly cash dividend. The increased dividend of 32 cents per share was paid on Oct 1, 2013 to shareholders of record on Sep 15, 2013.

Following second-quarter 2013 results, the Zacks Consensus Estimate for 2013 increased 0.7% to $3.00 per share, over the last 60 days for Community Trust Bancorp. For 2014, the Zacks Consensus Estimate advanced 0.3% to $3.03 per share over the same time period.

Other Stocks to Consider

Besides Community Trust Bancorp, other Southeast banks that are worth considering include SY Bancorp Inc. ( SYBT ) and Simmons First National Corporation ( SFNC ) with a Zacks Rank #1, while WesBanco Inc. ( WSBC ) carries a Zacks Rank #2 (Buy).

COMMUN TRUST BC (CTBI): Free Stock Analysis Report

SIMMONS FIRST A (SFNC): Free Stock Analysis Report

S Y BANCORP INC (SYBT): Free Stock Analysis Report

WESBANCO INC (WSBC): Free Stock Analysis Report

To read this article on click here.

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 OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: CTBI , SFNC , SYBT , WSBC

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