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Community Trust Bancorp Upped to Strong Buy - Analyst Blog
On Oct 5, Zacks Investment Research upgraded
Community Trust Bancorp Inc.
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Community Trust Bancorp has been witnessing rising earnings estimates on the back of strong second-quarter 2013 results and solid capital deployment activities. Moreover, this well-known commercial and personal banking along with trust and wealth management services provider recorded a year-to-date return of 18.6%. The year-over-year expected earnings growth rate for this stock is 3.9%.
Community Trust Bancorp reported its second-quarter results on Jul 17 with earnings per share of 76 cents, beating the Zacks Consensus Estimate of 74 cents by 2.7% but lagging the year-ago earnings of 79 cents by 3.8%. Better-than-expected results were driven by higher top line. The company maintained a strong capital position with solid loans and deposit balances during the quarter.
Net interest income surged 3.1% year over year to $33.3 million. This upsurge reflected lower interest expenses. Non-interest income increased 10.8% to $13.3 million, as compared with the prior-year period. Higher gains on sale of loans and elevated deposit service charges were the primary reasons for the upswing.
However, on the downside, non-interest expenses surged 7.9% year over year to $26.0 million. Higher personnel costs along with elevated occupancy and equipment expenses mainly drove the increase.
In Jul 2013, Community Trust Bancorp announced a 1.6% increase in its quarterly cash dividend. The increased dividend of 32 cents per share was paid on Oct 1, 2013 to shareholders of record on Sep 15, 2013.
Following second-quarter 2013 results, the Zacks Consensus Estimate for 2013 increased 0.7% to $3.00 per share, over the last 60 days for Community Trust Bancorp. For 2014, the Zacks Consensus Estimate advanced 0.3% to $3.03 per share over the same time period.
Other Stocks to Consider
Besides Community Trust Bancorp, other Southeast banks that are worth considering include SY Bancorp Inc. ( SYBT ) and Simmons First National Corporation ( SFNC ) with a Zacks Rank #1, while WesBanco Inc. ( WSBC ) carries a Zacks Rank #2 (Buy).
COMMUN TRUST BC (CTBI): Free Stock Analysis Report
SIMMONS FIRST A (SFNC): Free Stock Analysis Report
S Y BANCORP INC (SYBT): Free Stock Analysis Report
WESBANCO INC (WSBC): Free Stock Analysis Report
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Zacks Investment Research