UPDATE: FIG Partners Downgrades MutualFirst Financial to Market Perform on Valuation

In a report published Monday, FIG Partners analyst Brian Martin downgraded the rating on MutualFirst Financial

from Outperform to Market Perform, but reiterated the $16.50 price target. In the report, Martin noted, “We are lowering rating due to valuation. Shares have increased 25% since our upgrade on February 13th of this year versus zero growth in the NASDAQ Bank Index over that same period and now trade at 107% of tangible book value. We remain positive on the company's long term prospects; however, in our view current levels of profitability do not support a higher valuation. ROTCE was sub 6% in 1Q13. Following a review of the quarter we are maintaining our 2013 and 2014 EPS estimates at $0.90 and $1.00, respectively. MFSF reported 1Q13 core EPS of $0.20 excluding OREO expense and securities gains. Pre Pre EPS dropped 7% to $0.49 producing a a Pre Pre ROA of ~1%. Reported ROAA and ROTCE were 0.56% and 5.95%, respectively.” MutualFirst Financial closed on Friday at $16.40.