On Oct 5, Zacks Investment Research upgraded
Community Trust Bancorp Inc.
) 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
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
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
Other Stocks to Consider
Besides Community Trust Bancorp, other Southeast banks that are
worth considering include
SY Bancorp Inc.
Simmons First National Corporation
) with a Zacks Rank #1, while
) carries a Zacks Rank #2 (Buy).
COMMUN TRUST BC (CTBI): Free Stock Analysis
SIMMONS FIRST A (SFNC): Free Stock Analysis
S Y BANCORP INC (SYBT): Free Stock Analysis
WESBANCO INC (WSBC): Free Stock Analysis
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