This Day On The Street
Continue to site
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 Small-Cap Bank Stock Plays for 2013 From Credit Suisse

4. Susquehanna Bancshares

Susquehanna Bancshares (SUSQ) of Lititz, Pa., closed at $10.51 Wednesday, returning 28% year-to-date, following a 13% decline during 2011.

The shares trade for 1.5 times tangible book value, and for 11.3 times the consensus 2013 EPS estimate of 93 cents. The consensus 2014 EPS estimate is 97 cents.

Based on a seven-cent quarterly payout, the shares have a dividend yield of 2.66%. Susquehanna Bancshares on Dec. 11 announced it would accelerate the payment of its first-quarter 2013 dividend to Dec. 31 for shareholders of record as of Dec. 21. CEO William Reuter said the company moved up the payment "due to the potential for change in tax rates that would apply to dividends in 2013."

Unless President Obama and the Republican leadership of the House of Representatives hammer out a new budget deal, the Fiscal Cliff will include the expiration of the maximum 15% federal tax rate on qualified dividend income, which enacted when George W. Bush was president and extended by President Obama. Dividends will then be taxed as ordinary income.

Susquehanna Bancshares had $16.5 billion in total assets as of Sept. 30. The company in February acquired Tower Bancorp, adding roughly $2.5 billion in total assets, including $2.1 billion in loans.

The company reported third-quarter earnings of $36.7 million, or 20 cents a share, down slightly from $37.8 million, or 20 cents a share, the previous quarter, but increasing from $15.0 million, or 12 cents a share, a year earlier, reflecting an increase in net interest income from the acquisition of Tower Bancorp and Abington Bancorp in October 2011, and also a decline credit costs. Susquehanna's third-quarter provision for loan and lease losses during the third quarter was $16 million, which was the same amount added to reserves in the second quarter, but was down from $25 million in the third quarter of 2011.

Susquehanna also reported strong organic commercial loan growth of 3.2% during the third quarter. The company's third-quarter net interest margin was 3.92%, declining from 4.10% in the second quarter, "principally from the impact of purchase accounting" from the Tower acquisition, however, the margin was up from 3.58% in the third quarter of 2011.

Clark's price target for Susquehanna is $12 and the analyst estimates the company will earn 95 cents a share in 2013, with EPS increasing to $1.05 in 2014. The analyst said that Credit Suisse was "more positive on SUSQ based on our (1) increased comfort in consensus estimates, (2) view that bank deals are less likely and, (3) expectation for longer-term goals to be raised."

SUSQ Chart SUSQ data by YCharts

Interested in more on Susquehanna Bancshares? See TheStreet Ratings' report card for this stock.
3 of 6

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
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
SUSQ $14.20 -0.77%
BAC $11.95 0.00%
C $37.54 0.00%
EWBC $28.89 0.00%
FRC $58.39 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs