Back to top

Analyst Blog

On Aug 13, Zacks Investment Research upgraded 1st Century Bancshares, Inc. (FCTY - Snapshot Report) to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

1st Century Bancshares has been witnessing rising earnings estimates following the announcement of strong second-quarter 2013 results. Moreover, this regional bank has delivered earnings surprises in the last 4 quarters, with an average beat of 41.8%.

1st Century Bancshares reported second-quarter 2013 results on Aug 7. Earnings per share of 49 cents surpassed the Zacks Consensus Estimate by 69.0%. The better-than-expected results benefited from top-line growth, partially offset by a rise in operating expenses.

Net interest income grew 14.3% year over year to $3.9 million. Moreover, non-interest income jumped 71.1% to $0.8 million. On the flip side, non-interest expense rose 13.5% from the prior year quarter to $3.5 million.

Further, as of Jun 30, 2013, total loans surged 32.2% year over year to $312.3 million. Likewise, total deposits increased 7.1% to $406.9 million.

Moreover, asset quality depicted a mixed bag. Allowance for loan losses were $6.6 million, up 36.0% from the prior-year quarter. However, nonperforming assets declined 82.3% to $1.2 million.

Additionally, following the earnings release, the Zacks Consensus Estimate for 2013 increased by a penny to 85 cents per share over the last 30 days. Similarly, for 2014, the Zacks Consensus Estimate advanced by a penny to 39 cents per share over the same time period.

Positive earnings surprises and favorable estimate revisions stimulated the rank upgrade.

Other Stocks to Consider

While we prefer 1st Century Bancshares, other stocks carrying a Zacks Rank #1 include Pulaski Financial Corporation (PULB - Snapshot Report), Washington Federal Inc. (WAFD - Analyst Report) and Banner Corporation (BANR - Snapshot Report).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 2.99 +2.75%
THE PANTRY… PTRY 21.09 +2.43%
SANCHEZ ENE… SN 33.96 +2.01%
WILLDAN GRO… WLDN 11.71 +1.65%
CHINA BIOLO… CBPO 46.81 +1.62%