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Yadkin Financial Upped to Strong Buy

Zacks Equity Research

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).

Read the Full Research Report on FMFC

Read the Full Research Report on PNFP

Read the Full Research Report on YDKN

Read the Full Research Report on FFKT

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