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Xenith Bankshares Upped to Strong Buy

Zacks Equity Research

On Dec 27, Zacks Investment Research upgraded Xenith Bankshares, Inc. (XBKS) to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

Xenith Bankshares has witnessed positive estimate revisions on the back of strong third-quarter 2013 results. Moreover, the long-term expected earnings growth rate for this stock is 10%.

Xenith Bankshares reported its third-quarter results on Oct 30 with earnings per share of 7 cents, beating the Zacks Consensus Estimate of 4 cents by 75%.

Robust results for the reported quarter were primarily aided by an increase in net interest income and non-interest income. Moreover, Xenith Bankshares exhibited a substantial improvement in its asset quality.

As of Sep 30, 2013, net interest income stood at $6.1 million, increasing 4.0% year over year. Non-interest income stood at 0.3 million, improving from negative 0.014 million in the year-ago period.

Further, the net charge-off rate declined 13 bps year over year to 0.15%. Also, nonperforming assets as a percentage of total assets declined 20 bps year over year to 0.73%.

However, non-interest expenses, which increased 8.5% year over year to $4.8 million, were the downside.

Over the last 60 days, the Zacks Consensus Estimate for 2013 rose 17.6% to 20 cents per share. Also, for 2014, the Zacks Consensus Estimate advanced 5.0% to 21 cents per share over the same time frame.

Other Stocks to Consider

Other Northeast banks worth considering include Arrow Financial Corporation (AROW), Horizon Bancorp (HBNC), and Territorial Bancorp Inc. (TBNK). All these stocks carry the same Zacks Rank as Xenith Bankshares.

Read the Full Research Report on XBKS
Read the Full Research Report on TBNK
Read the Full Research Report on HBNC
Read the Full Research Report on AROW

Zacks Investment Research