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Raymond James analysts upgraded two banks and downgraded one on Monday after assessing their Q2 earnings and contemplating their outlooks for coming quarters.
Analyst Daniel Tamayo upgraded ConnectOne Bancorp (NASDAQ:CNOB) to Sturdy Purchase from Market Carry out and downgraded First Bancorp (NASDAQ:FBNC) to Market Carry out from Outperform. Analyst Steve Moss upgraded SmartFinancial (NASDAQ:SMBK) to Sturdy Purchase from Market Carry out.
ConnectOne (CNOB) inventory climbed 2.7%, and SmartFinancial (SMBK) gained 2.5%, and First Bancorp (FBNC) fell 3.5% in Monday morning buying and selling.
Whereas ConnectOne (CNOB) noticed internet curiosity margin compression, higher-than-expected bills, and modest mortgage development in Q2, “core deposits elevated, NIM bottomed in April, SBA (Small Enterprise Administration loans) momentum improved, and credit score metrics had been favorable,” Tamayo wrote in a be aware to purchasers.
Moss backs his Sturdy Purchase stance on SmartFinancial on the expectation that 2024 earnings enhance on NIM enlargement as Treasurys matures, and that mortgage development continues from elevated inhabitants in its southeastern territory and M&A disruption.
Flor First Bancorp (FBNC), Tamayo mentioned tighter NIM drove a internet curiosity revenue shortfall, which, mixed with greater working bills, led to a pretax preprovision revenue miss. On the optimistic aspect, credit score metrics had been good, payment revenue rose, and mortgage development was strong.
“Although tightened credit score requirements profit its credit score threat profile, it comes on the expense of a tempered development outlook, which, together with a tighter NIM, drive our EPS estimates decrease,” he mentioned.
