On Jun 25, 2013, Zacks Investment Research upgraded
S&T Bancorp Inc.
) to Zacks Rank #1 (Strong Buy).
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S&T BANCORP INC (STBA): Free Stock Analysis
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Why the Upgrade?
S&T Bancorp reported impressive first-quarter 2013 results.
Earnings for the quarter came in at 41 cents per share, rising
The boost in earnings was primarily driven by 1.1% sequential
growth in total loan portfolio to $3.4 billion, and a gain of
$3.1 million related to sale of the merchant card servicing
The loan portfolio generates a considerable portion of interest
income for the company. Therefore, S&T Bancorp is well
positioned to capitalize on the resurgent global economy
characterized by increasing overall loan demands.
Moreover, the company's asset quality has been consistently
improving, as evinced by a decline in provision for loan losses
to $2.3 million from $4.2 million in the preceding quarter.
Nonperforming loans decreased 15.8% sequentially to $46.3
million. Net charge-offs were also down 28.8% sequentially to
Further, S&T Bancorp is in the process of reshuffling its
senior executives. The company's efforts on this front are
expected to result in evolved business strategies and efficient
cost management, which will garner profitability.
Notably, the long-term earnings growth forecast for the company
is 5.0%. Additionally, over the last 60 days, the Zacks Consensus
Estimate for 2013 increased 1.4% to $1.45 per share. For 2014,
the Zacks Consensus Estimate advanced 7.9% to $1.50 per share
over the same time period.
Other Stocks to Consider
Apart from S&T Bancorp, other banks worth considering include
Eagle Bancorp, Inc.
MB Financial Inc.
) - all of which carry a Zacks Rank #2 (Buy).