CenterState Banks Upped to Strong Buy - Analyst Blog

On Jun 24, 2014, Zacks Investment Research upgraded CenterState Banks, Inc. (CSFL) to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

CenterState Banks has been witnessing rising earnings estimates following the announcement of the sale of six branch offices. Further, the company acquired First Southern Bancorp, Inc. on Jun 1, 2014. Notably, five of the six branches to be sold are the part of this acquisition.

Moreover, CenterState Banks has a long-term expected earnings growth rate of 8.0%. The stock has delivered a solid return of 30.4% over the past one year.

Additionally, CenterState Banks reported its first-quarter results on Apr 22 with earnings of 13 cents per share, beating the Zacks Consensus Estimate by 18.2%. Results benefited mainly from 23.5% year over year increase in net interest income, partially offset by 44.0% decline in non-interest income and 19.6% rise in operating expenses.

During the last 60 days, the Zacks Consensus Estimate for 2014 increased 10.0% to 66 cents per share. For 2015, the Zacks Consensus Estimate advanced 3.4% to 91 cents per share over the same time period.

Other Stocks to Consider

Some other banking stocks worth considering include Middleburg Financial Corporation (MBRG), Capital City Bank Group Inc. (CCBG) and Simmons First National Corporation (SFNC). All these stocks sport a Zacks Rank #1.