First Citizens Banc Upped to Strong Buy - Analyst Blog

On March 20, 2014, Zacks Investment Research upgraded First Citizens Banc Corp. FCZA to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

First Citizens Banc has been witnessing rising earnings estimates following the redemption of all preferred stocks issued as part of taking TARP money. Further, this regional bank reported strong fourth-quarter results.

In Feb 2014, First Citizens Banc completed the redemption of Fixed Rate Cumulative Perpetual Preferred Stock, Series A that were issued as part of taking bailout money. The redemption was done at an aggregate price of $22.9 million, along with nearly $0.3 million of accrued but unpaid dividends.

Further, First Citizens Banc reported fourth-quarter and 2013 results on Jan 10. Though the fourth-quarter adjusted earnings per share missed the Zacks Consensus Estimate, there was 31.8% growth on a year-over-year basis.

Results benefited from increased revenues and nil provision for loan losses, partially offset by higher operating expenses. Further, impressive credit quality and strong profitability ratios were the tailwinds.

Additionally, First Citizens Banc's loan and deposit balances also improved. As of Dec 31, 2013, net loans were $844.7 million, up 6.1% year over year. Likewise, deposits increased 1.7% to $942.5 million.

Moreover, over the last 30 days, the Zacks Consensus Estimate for 2014 increased 1.1% to 91 cents per share. Similarly, for 2015, the Zacks Consensus Estimate rose 2.1% to 99 cents per share over the same time period.

Other Stocks to Consider

While we prefer First Citizens Banc, other banks with a Zacks Rank #1 include Bank of the Ozarks, Inc. OZRK, First Merchants Corporation FRME and Lakeland Financial Corp. LKFN.