Pacific Continental Upped to Strong Buy
On May 4, Zacks Investment Research upgraded Pacific Continental Corp. (PCBK) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Pacific Continental has been witnessing rising earnings estimates based on strong first-quarter 2013 results. Moreover, this regional bank delivered positive earnings surprises in 3 of the last 4 quarters with an average beat of 25.30%.
Pacific Continental reported first-quarter 2013 results on Apr 24. Earnings came in at 19 cents per share, beating the Zacks Consensus Estimate by a nickel and the year-ago earnings by 26.7%. Results were primarily aided by solid top-line growth on the back of higher net interest income, partially offset by an increase in expenses. A decrease in non-interest income was also a headwind.
Net interest income climbed 6.0% year over year to $13.1 million. However, non-interest income fell 11.8% to $1.3 million. Further, non-interest expenses rose 23.5% year over year to $10.8 million.
The asset quality of the company improved in the quarter. The allowance for loan losses was 1.72% of total loans, down 20 basis points year over year. Further, nonperforming loans were 0.74% of total loans, down 230 basis points year over year. Nonperforming assets were 1.71% of total assets, down 101 basis points year over year
The Zacks Consensus Estimate for 2013 rose 1.3% to 81 cents over the last 30 days based on 2 upward estimate revisions. Over the same time period, the Zacks Consensus Estimate for 2014 moved up 1.1%.
Other Stocks to Consider
While we prefer Pacific Continental, other banks carrying a Zacks Rank #1 include CU Bancorp (CUNB), TriCo Bancshares (TCBK) and Preferred Bank (PFBC).
Read the Full Research Report on PCBK
Read the Full Research Report on PFBC
Read the Full Research Report on TCBK
Read the Full Research Report on CUNB
More From Zacks.com
