On May 4, Zacks Investment Research upgraded
Pacific Continental Corp.
) to a Zacks Rank #1 (Strong Buy).
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Why the Upgrade?
Pacific Continental has been witnessing rising earnings estimates
based on strong first-quarter 2013 results. Moreover, this
regional bank delivered positive earnings surprises in 3 of the
last 4 quarters with an average beat of 25.30%.
Pacific Continental reported first-quarter 2013 results on Apr
24. Earnings came in at 19 cents per share, beating the Zacks
Consensus Estimate by a nickel and the year-ago earnings by
26.7%. Results were primarily aided by solid top-line growth on
the back of higher net interest income, partially offset by an
increase in expenses. A decrease in non-interest income was also
Net interest income climbed 6.0% year over year to $13.1 million.
However, non-interest income fell 11.8% to $1.3 million. Further,
non-interest expenses rose 23.5% year over year to $10.8 million.
The asset quality of the company improved in the quarter. The
allowance for loan losses was 1.72% of total loans, down 20 basis
points year over year. Further, nonperforming loans were 0.74% of
total loans, down 230 basis points year over year. Nonperforming
assets were 1.71% of total assets, down 101 basis points year
The Zacks Consensus Estimate for 2013 rose 1.3% to 81 cents over
the last 30 days based on 2 upward estimate revisions. Over the
same time period, the Zacks Consensus Estimate for 2014 moved up
Other Stocks to Consider
While we prefer Pacific Continental, other banks carrying a Zacks
Rank #1 include