logo
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

 


8 Regional Banks Faring Well As Interest Rates Possibly Rise

  +Follow June 27, 2013 7:04PM
Share:
Tickers Mentioned:

Regional banks don’t have the hundreds of billions in dollars in assets majors like Bank of America (BAC) and Wells Fargo (WFC) do. But regional banks have one great asset the majors definitely do not – a foundation in traditional banking.

The majors took big hits in the Great Recession of 2007 investing in risky securities and credit default swaps, and they still struggle to completely divest from these investments. Regionals have largely stuck to the established banking practice of lending – personal loans; housing loans – and while they certainly suffered when the housing bubble burst as well, they now stand to benefit greatly from the rising interest and mortgage rates. And as that “spread” between interest rates and payables on deposits increases, regionals are looking like a more and more attractive investment.

The Case-Shiller Index, which looks at home prices in 20 major metropolitan markets, is up 2.32 percent on the month, and indicates that home prices are now at their highest level since 2009. Of the 20 cities in the index, San Francisco was the big gainer. Fueled by the blossoming tech sector, housing in San Francisco went up 24 percent over a year. 19 of the cities experienced at least some gain, with Detroit merely remaining flat in prices.

And as prices go up, so does the spread for regionals. The SPDR S&P Regional Banking ETF (KRE), which uses the S&P Regional Banks Select Industry Index as its benchmark, is up 1.83 percent to $33.97 a share, putting it just short of its 52 week high of $34.03.

We decided to spotlight a few specific emerging regionals and delve further into what’s fueling their growth.

LARGE CAP REGIONAL BANKS

Sun Trust Banks Inc. (STI) The Atlanta-headquartered, southern bank chain SunTrust weathered tough times during the housing crisis, even divesting from historic business partner Coca-Cola in 2009 to raise capital. But SunTrust, who currently operate over over 1600 throughout the entire South, are seeing big gains as the housing market rebounds, especially in their home of Atlanta, which is up 3.84 percent on the month.

SunTrust is up 1.08 percent to hit 31.70, and has jumped 37.71 percent from a year ago.

Regions Financial (RF) This Birmingham, A: chain with over 1700 locations throughout the South and Midwest looks sharp. It currently sits at its 52 week high of $9.71 a share. It’s up a whopping 52.6 percent from a year ago, and still looks strong with increasing profits and a good cash flow.

MID AND SMALL CAP BANKS

Home BancShares (HOMB) This bank holding company owns Arkansas and Florida chain Centennial, and just merged with another southern chain (Liberty) to expand out to 151 locations and $7.1 billion in total assets. Home BancShares is up 2.77 percent on the merger news to hit $26.32 a share. They’re up a healthy 38.22 percent since January.

First Republic Bank (FRC) San Francisco is leading the country in housing sales, and its no surprise one of their major mortgage lenders is feeling it. First Republic has 59 locations throughout California, with the majority in North California. First Republic is up 1.42 percent to $38.44 a share amidst heavy trading, and is up 15.1 percent on the year.

Center Bancorp, Inc. (CNBC) This New Jersey-based regional is up 1.72 percent to close at $12.98. In April Forbes named Center Bancorp a Top Dividend Stock, noting their attractive 2.56 percent dividend yield, and the fact that it was a high “insider buy,” meaning people within the company (who presumably know the most about it) believed in it enough to invest heavily in it. Bancorp is up 13.73 percent from its price one year ago.

Capital Bank Financial (CBF) This bank invests heavily in commercial and has a very attractive spread of 4.4 percent. Incorporated in Delaware and with locations in Florida, North and South Carolina, and Tennessee, their stock jumped 3.81 percent to close at $19.08 a share.

Fifth Third Bancorp (FITB) UBS Analyst Stephen Scinicariello is high on this Cincinnati, Ohio bank because of their healthy mortgage portfolio. They’re up .98 percent to hit $18.10 a share, and are up 18.9 percent on the year.

Wilshire Bancorp Inc. (WIBC) This Los Angeles-based bank holding company (main subsidiary: Wilshire State bank) has 24 locations throughout Southern California. This $476.98 million market cap bank might still be undervalued, with a P/E ratio of 5.48. Wilshire is only up .15 percent to close out at $6.69 a share, though they shot up 27.03 percent on the year.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


Liked What You Read? Join Equities.com as a contributor and get eyeballs on your content FOR FREE!

Results for WIBC
Penny Stock Secret
27 May 15 06:10:24
Don't Wait Untill 2016 To Realize This POWERFUL Stock Alert Service! $240,000 GAINS! http://t.co/NovWYe2RAx .. $NTCT $WIBC $CVTI
Investing Insight
26 May 15 14:03:00
barronsonline: RT ameystone: Dividend hikes expected from $LOW, $UNH, $WIBC http://t.co/RX0FgkAZQo via barronsonline
Barron's
26 May 15 14:01:56
RT @ameystone: Dividend hikes expected from $LOW, $UNH, $WIBC http://t.co/GpDjmsTDnS via @barronsonline
Amey Stone
26 May 15 13:53:04
Dividend hikes expected from $LOW, $UNH, $WIBC http://t.co/GpDjmsTDnS via @barronsonline
BreakingStocksNews
26 May 15 12:22:08
$WIBC: Notable Session Mover: Wilshire Bancorp, Inc. (NASDAQ:WIBC): http://t.co/Y9cQUtVpbE
Daily Contracts
26 May 15 10:14:03
Real-Time feed of company contracts, original agreements and executive updates from $WIBC http://t.co/U3IakA14AK
Analyst Ratings
26 May 15 06:52:23
Get the latest ratings for $ULBI $UTL $WTI $WIBC $BKI in your inbox with ARN Daily http://t.co/nSJuDsYidj
Capital Market Labs
26 May 15 04:58:15
$WIBC Assets are Expanding. #CML_WIBC #CML_Assets http://t.co/idFAJIk49r http://t.co/Yz42GyeMHp
Daily Contracts
25 May 15 14:03:02
Real-Time feed of company contracts, original agreements and executive updates from $WIBC http://t.co/U3IakA14AK
Daily Contracts
25 May 15 09:59:03
Real-Time feed of company contracts, original agreements and executive updates from $WIBC http://t.co/U3IakAiFsi
Capital Market Labs
25 May 15 07:32:43
$WIBC Earnings are Improving. #CML_WIBC #CML_Earnings http://t.co/KRwn2MHAjB http://t.co/6XXSGru38r
Capital Market Labs
25 May 15 00:10:01
$WIBC Assets and Earnings are Rising. #CML_WIBC #CML_Assets #CML_Earnings http://t.co/94g6HZ43Fm http://t.co/nr0lvgs1UB
Capital Market Labs
24 May 15 13:40:45
$WIBC Revenue and Earnings are Rising. #CML_WIBC #CML_Revenue #CML_Earnings http://t.co/yuNYKqg5KM http://t.co/N56x30fble
Capital Market Labs
24 May 15 04:34:01
$WIBC EPS is Rising. #CML_WIBC #CML_EPS http://t.co/2pojDxm1EG http://t.co/OCQpPvNgcN
Capital Market Labs
23 May 15 09:23:52
$WIBC Revenue and Earnings are Increasing. #CML_WIBC #CML_Revenue #CML_Earnings http://t.co/yuNYKqg5KM http://t.co/NFbrxVixy5
Capital Market Labs
23 May 15 04:35:34
$WIBC Assets and Earnings are Increasing. #CML_WIBC #CML_Assets #CML_Earnings http://t.co/94g6HZ43Fm http://t.co/v0gfd50NK6
Capital Market Labs
23 May 15 04:10:13
$WIBC EPS is Rising. #CML_WIBC #CML_EPS http://t.co/2pojDxm1EG http://t.co/ZQxf0eXt5F
Capital Market Labs
22 May 15 16:34:13
$WIBC Revenue is Increasing. #CML_WIBC #CML_Revenue http://t.co/y84X7rrbSU http://t.co/1fxKXTDPzi
Capital Market Labs
22 May 15 09:38:35
$WIBC Return on Equity is Increasing. #CML_WIBC #CML_Return_on_Equity http://t.co/vgWsXUjwXi http://t.co/agqDfHtsEu
K-Tides
21 May 15 21:31:12
$WIBC > Weird looking thing. Approaching $11.80
dailystockplays.com
21 May 15 14:36:04
Bearish Doji http://t.co/LJv2sgIdW6 $ZPIN $MORL $ETV $BKT $ELNK $URTY $LBRDA $NSIT $NGG $DHF $CHUY $JONE $WIBC $UEPS $CBM $BSJF $FIX $SKM
Capital Market Labs
20 May 15 23:14:24
$WIBC Assets are Increasing. #CML_WIBC #CML_Assets http://t.co/idFAJIk49r http://t.co/5vhoQKZytD
Investors Hangout
20 May 15 19:56:43
DennyT: WIBC Stock 11.13 Wilshire Bancorp $WIBC Hit a 52 http://t.co/Byq2Oa650V
Investors Hangout
20 May 15 19:56:39
DennyT: WIBC Stock 11.13 Wilshire Bancorp $WIBC Hit a 52 http://t.co/n3cUJKDgpV
DennyT
20 May 15 19:44:46
WIBC Stock 11.13 Wilshire Bancorp $WIBC Hit a 52 week high of 11.16 Closing the day 05/20/15 at 11.13 +0.04 +0 http://t.co/J1KSATrLu5
ProTradersNews
20 May 15 13:09:03
$WIBC: Brokerage Views on Wilshire Bancorp, Inc. (NASDAQ:WIBC): http://t.co/w0ZMKM2v8C
Capital Market Labs
20 May 15 04:43:10
$WIBC Revenue is Rising. #CML_WIBC #CML_Revenue http://t.co/y84X7rrbSU http://t.co/HjMjfBBxVh
Capital Market Labs
20 May 15 04:00:33
$WIBC Assets and Earnings are Expanding. #CML_WIBC #CML_Assets #CML_Earnings http://t.co/94g6HZ43Fm http://t.co/HHw5DlOHxe
nasdaqfan
19 May 15 07:19:24
POFCF Ex-Div Date Click Here -> http://t.co/0cGd96hT0I Trending $POFCF $WIBC $CARE $CPPY #POFCF #pennystocks #tradeideas
Capital Market Labs
19 May 15 07:16:01
$WIBC Return on Equity is Rising. #CML_WIBC #CML_Return_on_Equity http://t.co/vgWsXUjwXi http://t.co/OLnaZ9PhIm
Rosner Stocks
19 May 15 04:02:46
PAOTF Message Board Posts Click Here -> http://t.co/a2ZA636o3x Trending $PAOTF $WIBC $CNAB $APPY #PAOTF #stock #stockmarket
jim50
19 May 15 02:07:12
STTK E.P.S. Click Here -> http://t.co/5f1wSwZj34 Trending $STTK $SPGMF $WIBC $ROIUF #STTK #share #investing
InvestWithConf
19 May 15 01:01:02
$WIBC is rated BUY, 5.3% upside by Wall Street analysts based on average ratings/targets http://t.co/oK0VYh8lhH http://t.co/2B57wEbZha
				
				
  +Follow June 27, 2013 7:04PM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.

Login or Register

LOG IN