1. Susquehanna Bancshares
of Lititz, Pa., has seen its stock fall 40% year-to-date, closing at $5.81 Monday. The shares trade for 0.8 times their tangible book value of $7.50, according to SNL Financial.
Based on a quarterly payout of two cents, the shares have a dividend yield of 1.38%.
The company reported second-quarter net income applicable to common shareholders of $11.1 million, or nine cents a share, compared to a net loss of $1.4 million, or a penny a share, in the second quarter of 2010. The provision for loan losses declined to $28 million in the second quarter, from $43 million a year earlier
The second-quarter net interest margin was 3.62%, declining slightly from 3.69% a year earlier. The second-quarter ROA was 0.32%, according to SNL.
David Darst of Guggenheim securities on August 12 reiterated his buy rating for Susquehanna, while lowering his price target by 50 cents to $10, "to reflect expectations for the sector to trade at a lower valuation." The analyst said he expects the company to achieve an ROA of roughly 0.8% in late 2012 or in 2013.
The shares trade for 10 times the consensus 2012 earnings estimate of 59 cents a share, among analysts polled by FactSet.
Nine out of 14 analysts covering Susquehanna rate the shares a buy, while the remaining analysts all have neutral ratings.
Written by Philip van Doorn in Jupiter, Fla.
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