First NBC Bank Up to Strong Buy on Q2 Earnings Growth - Analyst Blog


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On Aug 28, Zacks Investment Research upgraded First NBC Bank Holding Company ( NBCB ) to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

The rank upgrade of this Louisiana-based bank was driven by strong estimate revisions on the back of second-quarter 2014 results that reflected improvement in the year-over-year performance.

On Jul 28, First NBC Bank released its second-quarter 2014 results. Earnings per share of 65 cents came significantly above the prior-year quarter figure of 49 cents per share. However, the reported figure came in line with the Zacks Consensus Estimate.

The company also witnessed top-line growth driven by increase in both net interest income (NII) and non-interest income. NII grew 37.9% year over year to $26.5 million and non interest income climbed 7.1% to $2.9 million. Also, net interest margin was 3.35%, up 47 basis points from the prior-year quarter.

The company grew organically during the quarter with loan and deposit balances showing improvements. As of Jun 30 2014, total loans increased 23.1% year over year to $219.1 million and total deposits grew 17.7% to $226.7 million.

Also, First NBC Bank remained well capitalized and its credit quality exhibited partial improvement.

However, the positives were partially offset by higher expenses and provision for loan losses. Non-interest expenses increased 22.3% from the prior-year quarter to $18.6 million while provision for loan losses grew 25% to $3.0 million.  

Nevertheless, analysts' bullish stance on the stock was reflected in the estimate revisions over the past 30 days. For 2014, the Zacks Consensus Estimate advanced nearly 2% to $2.71 per share. Also, it moved north 6.6% to $3.23 per share for 2015.

Other Stocks to Consider

Other stocks in the Southeast banks space worth considering include Bank of the Ozarks, Inc. ( OZRK ), Farmers Capital Bank Corporation ( FFKT ) and First Community Bancshares, Inc. ( FCBC ). All three stocks hold the same rank as First NBC Bank.

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FIRST NBC BANK (NBCB): Free Stock Analysis Report

BANK OZARKS (OZRK): Free Stock Analysis Report

FIRST COMM BCSH (FCBC): Free Stock Analysis Report

FARMERS CAP KY (FFKT): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Earnings , Stocks
More Headlines for: NBCB , OZRK , FCBC , FFKT

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