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Stephens downgrades Your Community Bancshares; Raymond James upgrades Banc of California


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Stephens downgrades Your Community Bancshares; Raymond James upgrades Banc of California


Stephens analystErick Zwick downgraded New Albany, Ind.-based Your Community Bankshares Inc. to "equal-weight"from "overweight," and rescinded his target price of $37, after news thatit is selling to Wheeling,W.Va.-based WesBanco Inc.

His 2016 and2017 EPS estimates are $2.85 and $2.90, respectively.

The analystrecommended in his report that company shareholders looking to secure the takeoutpremium consider other Midwest banks rated "overweight" by Stephens, namelyFirst Busey Corp., and


Raymond Jamesanalyst Donald Worthington upgraded Irvine, Calif.-based Banc of California Inc. to "outperform" from "marketperform," and established a 12-month target price of $23, following strongfirst-quarter incomeresults.

Worthingtonraised his 2016 and 2017 EPS estimates to $1.65 and $2.05, respectively, "toreflect a higher level of net interest income, which is driven by a larger averageearning asset base, a lower provision assumption," the analyst wrote.

The analystsees Banc of California well-positioned for growth, noting its higher-than-expectednet income and organic loan and deposit build-up for the first quarter. He alsoanticipates the company's core profitability metrics to improve as it continuesto generate operating leverage in 2016.

With its loansand deposit growth, the analyst also referred to Banc of California nearing thethreshold of $10 billion in assets in 2016. He said management is working to preparefor all regulatory changes in relation to this development.


Sandler O'Neill& Partners analyst R. Scott Siefers maintained a "hold" rating forEvansville, Ind.-based Old NationalBancorp, and raised his 12-month target price to $13, following results and recent transactions.

The analystfurther modified his 2016 EPS estimate to 91 cents from 92 cents, and 2017 EPS estimateto $1.02 from $1.01.

Siefers citedthe company's insurance unit sale,as well as the Anchor BanCorp WisconsinInc. deal,in his report, and stated: "[The] bottom line in our view is that ONB's 1Qresults yielded more moving parts to the story than we had anticipated, but thereis little bottom line impact. That said, favorable comments on loan growth and anticipatedABCW benefits help to improve the 'narrative' a bit."

The analystalso said that the insurance unit sale should allow the company to reach its 63%full-year efficiency ratio target and referred to the Anchor Bancorp transactiona "cultural fit" that generated "very strong" early returns.