Because even better days could be ahead for Sandy Spring Bancorp Inc. (NASDAQ:SASR) I recommend you hold. This is especially true when considering banking regulators intention of keeping “too big to fail” institutions get much larger and seeking healthier competition in the banking system. Therefore, some analysts are already considering Sandy Spring Bancorp Inc. (NASDAQ:SASR) to be a target itself for a company looking to grow via M&A.
Expands Ameris to the Southeast
Ameris Bancorp (NASDAQ:ABCB) provides a range of banking services to retail and commercial customers. Ameris Bancorp (NASDAQ:ABCB) recently announced in May the signing of a definitive merger agreement to acquire The Prosperity Banking Company, the parent company of Prosperity Bank. The acquisition further expands Ameris Bancorp (NASDAQ:ABCB)‘ existing southeastern footprint in several attractive Florida markets. Upon the transaction’s completion, expected in the third quarter of 2013, the combined company will have $3.6 billion in assets, $2.5 billion in loans, $3.0 billion in deposits and a branch network of 69 banking locations across four states.
My recommendation for Ameris Bancorp (NASDAQ:ABCB) is to buy, based on the recent earnings report from the first quarter of 2013. Highlights of the report include net income available to common shareholders increased 36.3% compared to the fourth quarter of 2012, suggesting that Ameris Bancorp (NASDAQ:ABCB) has been able to avoid some of the top-line earning woes that have impacted its larger counterparts. Furthermore, net interest margin was 4.79% compared to 4.48% in 1Q 2012 and 4.75% QoQ. This is the result of several factors. First, an increase of 2.2% of net interest income for the first quarter of 2013. Second, steady yields on loans through most of the current interest rate cycle. And finally, solid improvements in the earning asset mix and funding costs over the past year.
Bottom line
The broad financial sector has been a strong performer so far this year. We can expect an even better performance for all three stocks if their managements take good advantage of current and future market trends. Although Sandy Spring Bancorp Inc. (NASDAQ:SASR) does not offer convincing reasons for a buying recommendations, PrivateBancorp Inc (NASDAQ:PVTB) and Ameris Bancorp (NASDAQ:ABCB) are expected to deliver strong growth figures in the future; both look pretty attractive.
Victor Selva has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Victor is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
The article 3 Financials Showing Profits YTD originally appeared on Fool.com is written by Victor Selva.
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