On Mar 6, Zacks Investment Research upgraded
National Bankshares Inc.
) to Zacks Rank #1 (Strong Buy).
BANK OF KY FINL (BKYF): Get Free Report
MONARCH FINANCL (MNRK): Free Stock Analysis
NATL BNKSHRS VA (NKSH): Free Stock Analysis
WESBANCO INC (WSBC): Free Stock Analysis
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Why the Upgrade?
National Bankshares has been witnessing rising earnings estimates
owing to strong fourth quarter 2012 results. Moreover, this
regional bank delivered positive earnings surprises in 2 of the
last 4 quarters with an average beat of 2.1%.
National Bankshares reported fourth-quarter results on Feb 14.
Earnings per share came in at 67 cents, lagging the year-ago
earnings by 4.3%. However, the earnings beat the Zacks Consensus
Estimate by 9.84%. Results were primarily aided by improved net
interest income and lower provision for credit losses, partially
offset by a rise in expenses and lower non-interest income.
Net interest income rose 0.7% year over year to $10.3 million.
However, non-interest income declined 2.7% to $2.2 million.
Further, total non-interest expenses hiked 10.2% year over year
to $5.9 million.
Credit quality was mixed at National Bankshares. Provision for
credit losses declined to $0.6 million from $0.8 million in the
prior-year quarter. However, as of Dec 31, 2012, nonperforming
assets were 1.19% of total loans, up 6 basis points (bps) from
the prior-year quarter. Moreover, allowance for loans losses were
1.41% of total loans, up 4 bps from the prior-year quarter.
The Zacks Consensus Estimate for 2013 increased 4.0% to $2.58.
Other Stocks to Consider
Besides National Bankshares, other stocks in the same sector like
WesBanco Inc. (
Monarch Financial Holdings, Inc.
Bank of Kentucky Financial Corp.
) carry a Zacks Rank #1 and are worth considering.