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Stephens reviews deposit betas in Southeast; KBW resumes Triumph coverage

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Stephens reviews deposit betas in Southeast; KBW resumes Triumph coverage

Initiation

* Keefe Bruyette & Woods' Nicholas Grant on Aug. 8 assumed coverage of Triumph Bancorp Inc., rating it "outperform" with a target price of $33. The rating had been suspended in April.

The Dallas-based company has an "impressive commercial finance asset generation machine." The analyst noted this translates to a greater need for deposits — which management addresses by taking on the additional risk of acquisitions.

Notable Reiteration

* Hovde Group's Joseph Fenech on Aug. 8 said Investar Holding Corp.'s BOJ Bancshares Inc. acquisition should have the company "over the hump" of proving its M&A discipline.

While the analyst thinks the Baton Rouge, La.-based company will step back and "realize the promised synergies," Fenech also noted its excess capital could allow it to add a further $200 million to $250 million in assets "before returning to the markets for [more]."

Fenech maintained his rating of "outperform" and raised the price target by a dollar to $26.

Industry report

* A review of deposit beta trends among Southeast banks has Stephens' Tyler Stafford concluding that most in the region "have managed to withstand sizable deposit cost increases with 'one-off' negotiations for strategic accounts."

Stafford also pointed out that, in the last rate cycle, Georgia banks had "the greatest 'through the cycle' deposit betas, followed by Tennessee, while Florida saw the lowest deposit betas." In this one, banks in the Carolinas beat banks in Florida.

The analyst Aug. 9 named Florida's Capital City Bank Group Inc. and CenterState Banks Inc., Atlanta-based State Bank Financial Corp., South Carolina's South State Corp. and Tennessee-based FB Financial Corp. as best-positioned to see lower relative betas going forward.