This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 Most Profitable Banks Trading Below Book Value

3. StellarOne
Shares of StellarOne Corp. (STEL) of Charlottesville, Va., closed at $13.23 Monday, returning 18% year-to-date, following a 21% decline during 2011.

The shares trade just below their June 30 tangible book value, and for 14 times the consensus 2013 EPS estimate of 97 cents. The consensus 2012 EPS estimate is 92 cents.

Based on a quarterly payout of six cents, the shares have a dividend yield of 1.81%.

StellarOne's ROA for 12 months ending June 30 0.66%, while the company's ROE was 4.62%.

The company reported second-quarter 2012 net income available to common shareholders of $4.9 million, or 0.21 cents a share, declining from $5.5 million, or 24 cents a share, in the first quarter, but increasing from $3.3 million, or 14 cents a share, in the second quarter of 2011.

The second-quarter results included $824,000, or three cents a share, in severance costs. The second-quarter provision for loan losses was $1.4 million, increasing from $850,000 the previous quarter, but declining sharply from $3.2 million a year earlier.

KBW analyst Catherine Mealor rates StellarOne "Market Perform," with a price target of $13, saying in July after the company reported its second-quarter results that the company's better-than-expected results "came on a stable net interest margin , the result of strong deposit growth and a positive deposit mix shift, which, coupled with liquidity deployment led to 6% average earning assets growth," although "with negative avg loan growth in the qtr, all of this growth came in the form of fairly low-rate, shorter-term securities."

The analyst added that "coming expense saves could add up to $2M/yr to earnings by 2014, but will be offset by the cost of the planned market growth."

Mealor estimates that StellarOne will earn 90 cents for all of 2012, and also in 2013.

STEL Chart STEL data by YCharts

Interested in more on StellarOne Corp.? See TheStreet Ratings' report card for this stock.

9 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
USB $42.74 -0.19%
BAC $15.64 -0.32%
C $52.90 -0.60%
ETFC $28.17 -0.07%
KEY $14.23 -0.77%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs