On Aug 9, Zacks Investment Research upgraded
S&T Bancorp Inc
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
The rank upgrade for this Pennsylvania-based north-east bank was
driven by strong estimate revisions on the back of impressive
second-quarter 2014 results.
On Jul 29, S&T Bancorp released its second-quarter 2014
results. Earnings per share of 49 cents outpaced the Zacks
Consensus Estimate of 44 cents, marking the second consecutive
quarter of earnings beat. Also, the reported figure was up from the
prior-year quarter earnings of 47 cents per share.
Results reflected higher net interest income, increased loan and
deposit balances and a strong capital position. Further, credit
quality showed partial improvement. However, higher expenses and
lower non-interest income were on the downside.
Driven by loan growth, net-interest income increased 6.5% year over
year to $36.9 million. Net interest margin was 3.56%, up 5 basis
points from the prior year. However, lower mortgage revenue as well
as debit and credit card fees led to an 8.5% decline in
non-interest income to $11.8 million. Non-interest expense was up
6.3% year over year to $30.2 million.
The quarter marked the eighth consecutive quarter of loan growth
with an increase of 11% (annualized) to $3.7 billion. As of Jun 30,
2014, total deposits stood at $3.9 billion, up 6% year over year.
The Zacks Consensus Estimate for 2014 advanced 5.6% to $1.90 per
share over the past 30 days. Also, for 2015, it moved north 4.1% to
$2.01 per share.
Other Stocks to Consider
Other stocks in this space worth considering include Farmers and
Merchants Bancorp Inc. (
), Square 1 Financial, Inc. (
) and Territorial Bancorp Inc. (
). All three stocks hold the same rank as S&T Bancorp.
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