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

5 Buy-Rated Bank Stock Takeout Targets From KBW

3. OmniAmerican Bancorp


Shares of OmniAmerican Bancorp (OABC) of Fort Worth, Texas, closed at $22.74 Friday, returning 45% year-to-date, following a 16% return in 2011.

The shares trade for 1.3 times tangible book value, according to Thomson Financial Bank Insight, and for 27 times the consensus 2013 EPS estimate of 85 cents. The consensus 2014 EPS estimate is $1.10.

OmniAmerican converted to full stock ownership in January 2010, so the company's board of directors will be able to consider selling the company early next year.

The company had $1.3 billion in total assets as of Sept. 30, and reported third-quarter net income of $2.3 million, or 22 cents a share, increasing from $1.4 million, or 14 cents a share, in the second quarter, and $1.0 million, or 10 cents a share, in the third quarter of 2011. The earnings improvement reflected an increase in gains on loan sales to $941,000 in the third quarter from $501,000 the previous quarter, and $380,000 a year earlier. The company also reported 762,000 in gains on the sale of securities during the third quarter.

A bright spot for the third-quarter was that the net interest margin expanded to 3.30% during the third quarter, from 3.15% in the second quarter, although the margin had narrowed from 3.40% a year earlier.

KBW analyst Brady Gailey wrote on Oct. 26 that "OABC reported a strong quarter with 15 bpts of NIM expansion, propped higher by shrinkage in the bond book and paydowns of higher cost borrowings," and said that with the company not buying back any shares during the third quarter, he continued "to believe OABC could be worth around $28/shr in a sale."

Gailey estimates that operating independently, OmniAmerican Bancorp will earn 85 cents a share in 2013, with earnings growing to $1.10 a share in 2014.

The analyst said that "a sale of the company is likely in the near term," and that "we believe OABC's Dallas/Ft Worth geography will be attractive to many."

OABC Chart OABC data by YCharts

Interested in more on OmniAmerican Bancorp? See TheStreet Ratings' report card for this stock.

6 of 8

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
OABC $26.17 1.20%
BPFH $12.34 0.00%
BSRR $16.29 0.00%
ORIT $14.46 0.00%
WFC $54.05 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs