UPDATE: D.A. Davidson Reiterates Buy Rating, Raises PT on Pacific Continental Corporation Following Q2'13 Report

In a report published Friday, D.A. Davidson analyst Jeff Rulis reiterated a Buy rating on

, and raised the price target from $13.00 to $15.00. In the report, D.A. Davidson noted, “Pacific Continental reported Q2'13 earnings per share of $0.21, in line with the consensus estimate but $0.01 below our forecast. The modest shortfall versus our expectation was due to greater than expected margin compression. NIM was down to 4.20%, or 9bp from Q1 – this is attributable to a 10 basis point reduction in earning asset yields, while the cost of interest bearing funds was basically unchanged. The accretion of the Century Bank loan fair value market adjustment during 2Q'13 positively impacted NIM by 11bp, compared to 7bp in Q1, suggesting core NIM slid more than the reported figure would indicate. Loan activity continues for 6th consecutive quarter. Gross loans were $960.4 million, up $9.6 million from the previous quarter (4% annualized). Loan growth in Q2 centered in the CRE segment. Health care loans were highlighted once again as showing good growth (dental loans now make up 30% of the portfolio). Local and national pipelines were cited by the company as strong.” Pacific Continental Corporation closed on Thursday at $13.47.