FBR Capital Downgrades ViewPoint Financial (VPFG) to Market Perform; Valuation Mature Given Restrained Earnings Outlook
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Price: $19.30 -0.72%
Rating Summary:
1 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Rating Summary:
1 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Trade VPFG Now!
FBR Capital downgraded ViewPoint Financial (NASDAQ: VPFG) from Outperform to Market Perform. PT increased by $1 to $13.
FBR analyst says, "We are raising our FY11 EPS estimates to $0.62 from $0.45, due to higher NIM expectations, and introducing our 2012 EPS estimate of $0.65. VPFG reported 4Q10 GAAP EPS of $0.20, beating the consensus estimate of $0.16 and FBR's $0.14 estimate. The beat was largely due to stronger-than-expected net interest income, which drove an 18% increase in pretax, pre-provision (PTPP) earnings. NIM improvement was largely driven by lower FHLB costs and restructured deposit costs. However, after improving last quarter, credit metrics were disappointing as NPAs remained flat, and NCOs more than doubled and drove an increase in provision expense. ViewPoint has very strong capital levels with a 13.45% tangible common equity (TCE) ratio, well above peers at 9.9%, following its second-step conversion from a mutual holding company to a fully public entity June, in which the company raised $198M in equity. Although the company plans to deploy excess capital through organic loan growth and acquisitions, loan balances fell slightly this quarter and the company increased its securities portfolio."
For more ratings news on ViewPoint Financial click here and for the rating history of ViewPoint Financial click here.
Shares of ViewPoint Financial closed at $13.34 yesterday, with a 52 week range of $8.82-$17.82.
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FBR analyst says, "We are raising our FY11 EPS estimates to $0.62 from $0.45, due to higher NIM expectations, and introducing our 2012 EPS estimate of $0.65. VPFG reported 4Q10 GAAP EPS of $0.20, beating the consensus estimate of $0.16 and FBR's $0.14 estimate. The beat was largely due to stronger-than-expected net interest income, which drove an 18% increase in pretax, pre-provision (PTPP) earnings. NIM improvement was largely driven by lower FHLB costs and restructured deposit costs. However, after improving last quarter, credit metrics were disappointing as NPAs remained flat, and NCOs more than doubled and drove an increase in provision expense. ViewPoint has very strong capital levels with a 13.45% tangible common equity (TCE) ratio, well above peers at 9.9%, following its second-step conversion from a mutual holding company to a fully public entity June, in which the company raised $198M in equity. Although the company plans to deploy excess capital through organic loan growth and acquisitions, loan balances fell slightly this quarter and the company increased its securities portfolio."
For more ratings news on ViewPoint Financial click here and for the rating history of ViewPoint Financial click here.
Shares of ViewPoint Financial closed at $13.34 yesterday, with a 52 week range of $8.82-$17.82.
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