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Independent Bank Hits New 52-Week High

Zacks Equity Research

Shares of Independent Bank Group, Inc. (IBTX) crafted a new 52-week high, touching $53.33 on Jan 2, 2014. Notably, the closing price of Southeast Bank represents a solid return of 72.6% since it became a publicly traded company in Apr 2013. The trading volume for the session was 54,548 shares.

Despite hitting its 52-week high, this Zacks Rank #2 (Buy) stock has plenty of upside left, given its estimate revisions over the last 60 days and expected long-term earnings growth of 10.0%.

Growth Drivers

The recent strategic acquisitions and impressive third-quarter 2013 results including a better top line were the primary growth drivers for Independent Bank.

On Dec 3, 2013, Independent Bank announced the completion of the acquisition of a Texas-based state chartered bank -- Collin Bank, assuming assets worth $173.3 million. This was followed by completion of another acquisition on Jan 2, 2014 when the company acquired Live Oak Financial Corp, which is also a Texas-based state chartered bank, assuming assets of $126.6 million.

Further, on Nov 21, 2013, Independent Bank inked a deal to acquire Texas-based BOH Holdings, Inc. and its subsidiary, Bank of Houston. All these acquisitions by Independent Bank paved the way for inorganic growth.

Additionally, on Oct 29, 2013, Independent Bank reported its third-quarter 2013 earnings of 38 cents per share outpacing the Zacks Consensus Estimate by 5.6%. A significant year-over-year increase of 24.8% in net interest income and a 14.8% rise in non interest income were the tailwinds for the quarter.  

Estimate Revisions

Over the last 60 days, the Zacks Consensus Estimate for 2013 remained stable at $1.56 per share. For 2014, one estimate moved north, helping the Zacks Consensus Estimate advance 9.7% to $2.27 per share.

Other Southeast Banks worth considering include First Bancorp (FBNC), First NBC Bank Holding Co. (NBCB) and HomeTrust Bancshares, Inc. (HTBI). All these stocks carry a Zacks Rank #1 (Strong Buy).

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Read the Full Research Report on FBNC
Read the Full Research Report on NBCB
Read the Full Research Report on HTBI

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