10. StellarOne Corp.
Shares of StellarOne Corp. (STEL) of Charlottesville, Va., closed at 12.12 Wednesday, returning 7% year-to-date, after a decline of 21% in 2011.
The shares trade just below their Dec. 30 tangible book value of $12.95.The company on Jan. 31 raised its quarterly dividend by 50% to 6 cents a share, for a dividend yield of 1.92%, based on Friday's closing price. StellarOne had $2.9 billion in total assets as of Dec. 30. The company reported fourth-quarter earnings available to common shareholders of $3.8 million, or 17 cents a share, increasing from $2.4 million, or 10 cents a share, in the fourth quarter of 2010. The earnings results included $973 million in dividends and accretion on $22.5 million in preferred shares held by the government for assistance provided in 2008 under the Troubled Assets Relief Program, or TARP. StellarOne fully redeemed its TARP preferred shares on Dec. 28, after previously repaying $7.5 million. The fourth-quarter earnings improvement also reflected a decline in the provision for loan losses to $1.8 million, from $5.3 million, a year earlier. The net interest margin -- the difference between a bank's average yield on loans and investments and its average cost for deposits and wholesale borrowings -- was a tax-adjusted 3.79% during the fourth quarter, narrowing from 3.87% a year earlier, and reflecting a general industry trend, in the prolonged low-rate environment. The shares trade for 17.5 times the consensus 2012 earnings estimate of 72 cents a share, among analysts polled by Thomson Reuters. The consensus 2013 EPS estimate is 85 cents. BB&T analyst Cary Morris on Jan. 27 reiterated his "Hold" rating for StellarOne, saying the company's capital levels were "solid," and that he was "encouraged with results and the repayment of TARP (especially in absence of a capital raise)," and that he expected "expansion in 2012 to take place in the markets of Charlottesville, Richmond and Hampton Roads," in Virginia. Morris stuck with a neutral rating on the shares, based on below-consensus earnings estimates of 69 cents a share in 2012, and 78 cents in 2013. Interested in more on StellarOne? See TheStreet Ratings' report card for this stock.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV