Shares of First Horizon National Corp. ( FHN) of Memphis, Tenn., closed at $8.33 Monday, returning 4% year-to-date, following 32% decline during 2011. FHN data by YCharts
The shares trade just below their reported March 31 tangible book value of $8.78, and for nine times the consensus 2013 earnings estimate of 89 cents, among analysts polled by Thomson Reuters. The consensus 2012 EPS estimate is six cents, including an expected net loss of 50 cents a share when the company announces its second-quarter results on July 20, in the wake of a $272 million charge for mortgage putback reserves and related litigation. Steven Alexopoulos rates First Horizon "Overweight," with an $11.50 price target, saying on Tuesday that "the biggest cat
Shares of First Republic Bank ( FRC) of San Francisco closed at $32.99 Monday, returning 8% year-to-date, following a 5% return during 2011. FRC data by YCharts
The shares trade for 1.7 times their reported March 31 tangible book value of $18.91, and for 11 times the consensus 2013 EPS estimate of $2.89. The consensus 2012 EPS estimate is $2.72. The bank is expected to report its second-quarter results on July 18, with analysts estimating a 65-cent profit, declining from 67 cents in the first quarter, but increasing from 64 cents during the second quarter of 2011. First Republic was acquired by Bank of America ( BAC) as part of the purchase of Merrill Lynch in January 2009, and then sold in July 2010 to an investor group that included Colony Financial ( CLNY) and General Atlantic LLC and was led by First Republic's original management team. The bank then completed a public offering in December of 2010. Alexopoulos rates First Republic "Overweight," with a $41 price target, and said on Tuesday that "with management still calling the pipeline its best ever amid good activity levels within the geographic footprint, we look for loan growth to remain strong at 18% annualized, moderating from a very strong 25% pace of growth in 1Q." The analyst expects First Republic's net interest margin to narrow by six basis points from a relatively strong 4.39% in the first quarter. First Republic's first quarter net interest margin declined from 4.53% in the fourth quarter and 4.76% in the first quarter of 2011. With the bank expanding its wealth management business through new office openings in Boston and now in Delaware, JPMorgan looks "for fee income to increase 4% linked-quarter on the back of wealth management fees." The company plans to begin paying a quarterly dividend of 10 cents, beginning in the third quarter. Alexopoulos estimates First Republic will earn $2.06 a share for all of 2012, followed by 203 EPS of $2.26. The analyst said that First Republic "could be the strongest generator of intrinsic value in our group" of covered mid-cap regional banks, and that the bank differentiates itself from most of the competition by targeting "exclusively either high net worth or those on the path to becoming high net worth," while delivering "service levels that are among the highest in the industry today." Alexopoulos illustrated his point on customer service by saying that "while many banks struggle to get to 2-3 products sold per retail customer, FRC is currently averaging 9 products per customer." Interested in more on First Republic Bank? See TheStreet Ratings' report card for this stock.
Shares of SVB Financial Group ( SIVB) of Santa Clara, Calif., closed at $56.80 Monday, returning 19% year-to-date, following a 10% decline during 2011. SIVB data by YCharts
The shares trade for 1.7 times tangible book value, according to Worldscope data provided by Thomson Reuters, and for 15 times the consensus 2013 EPS estimate of $3.74. The consensus 2012 EPS estimate is $3.47. Analysts expect the company to report second-quarter earnings of 85 cents a share, increasing from 78 cents the previous quarter, but declining from 95 cents a year earlier. Alexopoulos rates SVB Financial Group "Overweight," with a price target of $71, saying his firm expected a "13% annualized increase in
Shares of Signature Bank ( SBNY) of New York closed at $60.71 Monday, returning 1% year-to-date, following a 20% return during 2011. SBNY data by YCharts
The shares trade for twice their tangible book value, according to Worldscope data provided by Thomson Reuters, and for 14.5 times the consensus 2013 EPS estimate of $4.18. The consensus 2012 EPS estimate is $3.65. Analysts expect the bank to report second-quarter EPS of 89 cents, compared to 90 cents the previous quarter and 87 cents a year earlier. Alexopoulos rates Signature Bank "Overweight," with a $75 price target, and said Tuesday that he expects the bank's "strong loan growth to continue," and for its second-quarter net interest margin to decline by two basis points to 3.48%. JPMorgan expects Signature Bank "to continue to be a standout on the loan growth front, with ~$550 million of period-end loan growth expected, or nearly 30% annualized growth." Alexopoulos estimates that Signature Bank will earn $3.51 a share for all of 2012, followed by 2013 EPS of $3.81. Signature Bank during the first quarter launched a special finance subsidiary called Signature Financial, hiring "of one of Long Island's most respected C&I-focused, middle market teams," according to CEO Joseph DePaolo. Alexopoulos said on Tuesday that "although growth metrics from Signature are at best-in-class levels, over the past several quarters the market seems to have now grown accustomed to very strong balance sheet growth out of the company with SBNY shares lagging peers on the day of earnings being reported." The analyst went on to say that the bank's expansion of its lending team "couldn't have come at a better time," and that the new unit "seems to be positioned to add a cylinder or two to the company's loan growth engine." Interested in more on Signature Bank? See TheStreet Ratings' report card for this stock.
Shares of BancorpSouth ( BXS) of Tupelo, Miss., closed at $14.64 Monday, returning 33% year-to-date, following a 30% decline during 2011. BXS data by YCharts
The shares trade for 1.1 times tangible book value, according to Worldscope data provided by Thomson Reuters, and for 15 times the consensus 2013 EPS estimate of 95 cents. The consensus 2012 EPS estimate is 84 cents. BancorpSouth is expected to report its second-quarter results on July 24, with the consensus estimate among analysts being a 20-cent profit, following EPS of 25 cents the first quarter, and 15 cents a year earlier. Alexopoulos rates BancorpSouth "Underweight," with a price target of $13, and on Tuesday called the company one of his "top shorts," saying that "while credit challenges remain an overhang, earning the cost of capital is the next challenge" and that "the potential pipeline for problem assets remains sticky," as "special mention loans increased 18% or $22 million" during the first quarter. The analyst added that "With +$1 billion CDs maturing in the coming quarters, the company has further room to lower its deposit costs, which now stand at 84 bps. However, in the absence of loan growth,
Shares of Astoria Financial ( AF) of Lake Success, N.Y., closed at $10.01 Monday, returning 20% year-to-date, following a 36% decline during 2011. AF data by YCharts
The shares trade for 0.9 times their reported March 31 tangible book value of $11.22, and for 15 times the consensus 2013 EPS estimate of 65 cents. The consensus 2012 EPS estimate is 53 cents. Astoria during the first quarter cut its quarterly dividend to four cents from 13 cents, as the company suffered year-over-year declines in net interest income and margin. Based on the current payout the shares have a dividend yield of 1.60%. The company will report its second-quarter results on July 18, with analysts expecting a 13-cent profit, following EPS of 11 cents the previous quarter and 18 cents a year earlier. The company's first-quarter net interest margin was a relatively narrow 2.20%, unchanged from the fourth quarter, but declining from 2.40% during the first quarter of 2011. Alexopoulos rates Astoria "Underweight," and on Tuesday called the company one of his "top shorts," and said he expects the second-quarter net interest margin to contract by two basis points to 2.18%, and with the dividend cut, expects the company's tangible common equity ratio "to improve modestly to ~6.5%." Alexopoulos expects Astoria to earn 46 cents a share this year, followed by 2013 EPS of 52 cents. The analyst said on Tuesday that "even looking all the way to 2016,
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