Upgrades
* Jacquelynne Bohlen of Keefe Bruyette & Woods raised TriCo Bancshares', Heritage Commerce Corp.'s and First Hawaiian Inc.'s ratings to "outperform" from "market perform."
Bohlen, in assigning the rating, cited a price target of $45 for TriCo Bancshares, $19 for Heritage Commerce and $34 for First Hawaiian.
Bohlen noted TriCo Bancshares' top community bank market share position in its California markets. This is expected to create pricing power that will support the Chico, Calif.-based company's net interest margin.
San Jose-based Heritage Commerce's two pending acquisitions are expected to drive revenue synergies, providing a basis for upward earnings revisions, Bohlen wrote.
The analyst expects Honolulu-based First Hawaiian's valuation gap to narrow over time with its local peers, eventually aligning closely with that of Bank of Hawaii Corp.. The likely reduction of BNP Paribas SA's ownership stake would lead to more capital flexibility, as First Hawaiian would no longer be subject to the Comprehensive Capital Analysis and Review, Bohlen noted.
Transferred coverage
* Hovde Group transferred coverage of "market perform"-rated Civista Bancshares Inc. to Kevin Swanson from Joseph Fenech.
Swanson maintained the Sandusky, Ohio-based company's price target at $24.
After the announcement of its pending acquisition of United Community Bancorp, Civista Bancshares' stock was down by approximately 6% on March 12. The financial profile of the deal, specifically not including the conversion of preferred shares, may have been the reason for the negative reaction in the stock, Swanson added.
The company estimated a tangible book value earnback period of 4.1 years using the simple method, but the analyst noted that a "back of the envelope" calculation shows the period could be closer to 5.5 years.
