On Dec 27, Zacks Investment Research upgraded Xenith Bankshares, Inc. (XBKS - Free Report) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Xenith Bankshares has witnessed positive estimate revisions on the back of strong third-quarter 2013 results. Moreover, the long-term expected earnings growth rate for this stock is 10%.
Xenith Bankshares reported its third-quarter results on Oct 30 with earnings per share of 7 cents, beating the Zacks Consensus Estimate of 4 cents by 75%.
Robust results for the reported quarter were primarily aided by an increase in net interest income and non-interest income. Moreover, Xenith Bankshares exhibited a substantial improvement in its asset quality.
As of Sep 30, 2013, net interest income stood at $6.1 million, increasing 4.0% year over year. Non-interest income stood at 0.3 million, improving from negative 0.014 million in the year-ago period.
Further, the net charge-off rate declined 13 bps year over year to 0.15%. Also, nonperforming assets as a percentage of total assets declined 20 bps year over year to 0.73%.
However, non-interest expenses, which increased 8.5% year over year to $4.8 million, were the downside.
Over the last 60 days, the Zacks Consensus Estimate for 2013 rose 17.6% to 20 cents per share. Also, for 2014, the Zacks Consensus Estimate advanced 5.0% to 21 cents per share over the same time frame.
Other Stocks to Consider
Other Northeast banks worth considering include Arrow Financial Corporation , Horizon Bancorp (HBNC - Free Report) , and Territorial Bancorp Inc. (TBNK - Free Report) . All these stocks carry the same Zacks Rank as Xenith Bankshares.