On Feb 8, 2014, Zacks Investment Research upgraded
SY Bancorp Inc.
) to a Zacks Rank #1 (Strong Buy).
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S Y BANCORP INC (SYBT): Free Stock Analysis
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Why the Upgrade?
SY Bancorp has been witnessing rising earnings estimates
following the announcement of impressive fourth-quarter results
and due to its strong capital deployment activities. Moreover,
this regional bank's earnings growth rate is expected to be 8.7%
SY Bancorp reported fourth-quarter and 2013 results on Jan 27.
Though the fourth-quarter earnings per share missed the Zacks
Consensus Estimate by a penny, there was 4.2% growth on a
Results benefited from increased net interest income and
lower-than-expected provision for loan losses, partially offset
by fall in both fee income and operating expenses. Further,
impressive credit quality and strong capital ratios were the
Additionally, during 2013, SY Bancorp meaningfully deployed
capital (raised quarterly dividend by 5% and acquired THE
BANCorp, INC.) and redeemed 10% fixed-rate cumulative trust
preferred securities. The company has been experiencing synergies
from the acquisition with growth in loan and deposit balances.
Furthermore, the redemption will lower interest expenses in the
future and is also expected to be accretive to the company's
earnings by improving earnings per share by 13 cents in 2014.
Additionally, over the last 30 days, the Zacks Consensus Estimate
for 2014 increased 3.9% to $2.14 per share. Similarly, for 2014,
the Zacks Consensus Estimate nudged up nearly 1% to $2.26 per
share over the same time period.
Other Stocks to Consider
While we prefer SY Bancorp, other banks with a Zacks Rank #1
Bridge Bancorp, Inc.
Arrow Financial Corp.
Heritage Commerce Corp.