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Yadkin Financial Upped to Strong Buy - Analyst Blog

By: Zacks.com
Posted: 9/4/2013 10:30:00 AM
Referenced Stocks: FFKT;FMFC;PNFP;YDKN

On Aug 31, Zacks Investment Research upgraded Yadkin Financial Corporation ( YDKN ) to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

Yadkin Financial has been witnessing rising earnings estimates on the back of strong second-quarter 2013 results. Moreover, the long-term expected earnings growth rate for this stock is 6%.

Yadkin Financial reported its second-quarter results on Jul 25 with earnings per share of 30 cents, beating the Zacks Consensus Estimate of 19 cents by 57.9%. However, earnings were below the year-ago figure of $1.57 per share.

The better-than-expected results for the quarter were primarily aided by increase in both net interest and non-interest income and a fall in expenses. Lower provision for credit losses was also a positive.

Net interest income surged 6% to $16.1 million. Further, non-interest income increased 40% to $6.2 million. Provision for credit losses substantially declined year over year to $0.6 million. Additionally, expenses fell 6% to $14.8 million for Yadkin Financial, as compared with the prior-year period.

As of Jun 30, 2013, total loans were $13.1 billion, down 4% year over year. Further, total deposits were $15.2 billion, down 9.0%.

Following second-quarter 2013 results, the Zacks Consensus Estimate for 2013 increased 30.1% to $1.21 per share over the last 60 days. For 2014, the Zacks Consensus Estimate advanced 12.6% to $1.25 per share over the same time period.

Other Stocks to Consider

Apart from Yadkin Financial, other Southeast banks with a Zacks Rank #1 include Farmers Capital Bank Corporation ( FFKT ), First M&F Corporation ( FMFC ) and Pinnacle Financial Partners Inc. ( PNFP ).



FARMERS CAP KY (FFKT): Free Stock Analysis Report

FIRST M & F CRP (FMFC): Get Free Report

PINNACLE FIN PT (PNFP): Free Stock Analysis Report

YADKIN FINL CP (YDKN): Free Stock Analysis Report

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Zacks Investment Research