Southwest Bancorp Upped to Strong Buy - Analyst Blog
On Aug 3, Zacks Investment Research upgraded
Southwest Bancorp Inc.
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Southwest Bancorp has been witnessing rising earnings estimates on the back of strong second-quarter 2013 results. Moreover, the long-term expected earnings growth for this well-known banking and financial services provider is 7.5%.
Southwest Bancorp reported its second-quarter results on Jul 23 with earnings per share of 22 cents, substantially beating the Zacks Consensus Estimate of 17 cents by 29.4% and the year-ago earnings of 15 cents by 47%. Robust results for the reported quarter were primarily aided by reduced non-interest expenses, decreased income tax expenses and negative provision for loan losses.
Non-interest expense declined 23% from the year-ago period to $12.8 million. This reduction reflected prudent expense management by the company.
Credit quality continues to exhibit an improvement for Southwest Bancorp. Provision for loan losses was negative $0.9 million as compared with $0.03 million in the prior-year quarter. Nonperforming assets were $4.7 million, down 52% year over year.
However, on the downside, net interest income declined 23% year over year to $15.1 million. Net interest margin was 3.07%, down 64 basis points as compared with the year-ago quarter. Non-interest income decreased 3% to $3.5 million.
Following second-quarter 2013 results, the Zacks Consensus Estimate for 2013 increased 14.8% to 70 cents per share on the back of four upward revisions, over the last 30 days. For 2014, the Zacks Consensus Estimate advanced 3.9% to 80 cents per share with three estimates moving north over the same time period.
Other Stocks to Consider
Besides Southwest Bancorp, other stocks in the same industry with a Zacks Rank #1 include Prosperity Bancshares Inc. ( PB ), while First Financial Bankshares Inc. ( FFIN ) and MidWest One Financial Group, Inc. ( MOFG ) carrying a Zacks Rank #2 (Buy) are also worth considering.
FIRST FIN BK-TX (FFIN): Free Stock Analysis Report
MIDWESTONE FINL (MOFG): Free Stock Analysis Report
SOUTHWEST BC-OK (OKSB): Free Stock Analysis Report
PROSPERITY BCSH (PB): Free Stock Analysis Report
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