6. First PacTrust Bancorp
Shares of First PacTrust Bancorp (BANC) of Irvine, Calif., closed at $11.67 Friday, down 4% this year, following a 25% return during 2012. The shares trade just below tangible book value, and for 8.6 times the consensus 2014 EPS estimate of $1.35. The consensus 2013 EPS estimate is 77 cents.
With a quarterly payout of 12 cents, the shares have an attractive dividend yield of 4.11%.First PacTrust hasn't yet reported its first-quarter results. The company had $1.7 billion in total assets as of Dec. 31, increasing 69% from a year earlier, through the acquisitions of Beach Business Community Bank of Manhattan Beach, Calif., and Gateway Business Bank of Cerritos, Calif. The company also has a pending deal to acquire Private Bank of California, of Century City, in a stock deal valued at about $50 million when the deal was announced in August. Private Bank of California had $674 million in total assets as of March 31. For all of 2012, First PacTrust Bancorp reported net income available to common shareholders of $4.6 million, or 40 cents a share, improving from a net loss of $3.3 million, or 28 cents a share, during 2011. First PacTrust reported a fourth-quarter net loss to common shareholders of $3.2 million, or 30 cents a share, compared with a net loss of $5.6 million, or 52 cents a share, a year earlier. The fourth-quarter results were lowered by a $429,000 reversal of bargain purchase gains previously booked after the Gateway acquisitions. The company also said that fourth-quarter noninterest expenses were "higher as a result of merger related costs associated with the Company's third quarter acquisitions, as well as expenses related to expansion of PacTrust Bank's residential mortgage lending business." KBW analyst Jacquelynne Chimera said in a note to clients on March 3 that First PacTrust's "mortgage banking income was $14.4 million in the quarter ($0.83/ share)." "We expect the next few quarters to remain volatile as the company continues to integrate the Beach and Gateway platforms, close its pending acquisition of The Private Bank of California (still guided to close in 2Q13), roll its subsidiaries into one bank, and further develop its business line items," Chimera wrote. First PacTrust is obviously a long-term expansion play. Chimera rates the shares "market perform" and estimates the company will earn 60 cents a share this year, with EPS rising to $1.05 in 2014. Interested in more on First PacTrust Bancorp? See TheStreet Ratings' report card for this stock.