logo
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

 

Equities – Your destination to connect with the growth investment community.

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 and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for WIBC
The Legacy News
24 Apr 15 04:42:17
Wilshire Bancorp Stock Rating Lowered by Raymond James $WIBC http://t.co/4BdhvVqVhG
Sleek Money
23 Apr 15 09:35:32
Wilshire Bancorp Downgraded to “Outperform” at Raymond James $WIBC http://t.co/2z8fXed3W1
WallStreetConsensus
23 Apr 15 08:28:49
Downgrades yesterday: $AGU, $ALTR, $BOH, $BRO, $WIBC, $FULT, $NE, $RF, $ESV, $RIG, $CMG, $PNR http://t.co/vc8ywcSTuV
StockNewsWires
23 Apr 15 00:55:02
$NOK $WIBC: Analysts Upgrades & Downgrades: Nokia Corporation (ADR) (NYSE ...: http://t.co/D5FzNqCcpj
Breaking News
22 Apr 15 12:35:04
$WIBC: Brokerage Firm Focus: Wilshire Bancorp, Inc. (NASDAQ:WIBC): http://t.co/JSZPTn57e5
$Stocknewsalerts
22 Apr 15 10:57:09
$WIBC Wilshire Bancorp, Inc. Document: 8-K From our Stock News Alerts App
Stocks News&Markets
22 Apr 15 10:55:06
$WIBC - Current Report Filing (8-k) http://t.co/rH2qOY0Q21
NASDAQ
22 Apr 15 10:55:05
$WIBC - Current Report Filing (8-k) http://t.co/8Gb4FyvxlX
StockNewsWires
22 Apr 15 10:54:08
$WIBC: New SEC Filing for WIBC: Form 8-K (No. 0001104659-15-029287): http://t.co/E81ghHAhmP
SEC Filings Reporter
22 Apr 15 10:54:04
NEW SEC Filing for $WIBC filed a moment ago: http://t.co/QEm2DAvQRs http://t.co/PZrlS2u0p8
ValuEngine Inc
22 Apr 15 09:39:05
$SMFG $PLNR $SNYFY $WIBC $WISH Top-Five Upgrades for the day. Follow @ValuEngine for more $$ http://t.co/b3B0WiDuaU http://t.co/8P7TIpBQH1
The Fly
22 Apr 15 07:03:04
On The Fly: Analyst Downgrade Summary $AGU $ALTR $BBD $BOH $BRO $CTRX $CMG $PRE $PNR $RF $SCHL $AMTD $WIBC: Fu... http://t.co/yYH6Mf3svL
StockNewsWires
22 Apr 15 06:57:09
$RIG $WIBC: Benzinga's Top Downgrades: http://t.co/0kfT2vwgJl
WKRB News
22 Apr 15 05:35:23
Wilshire Bancorp Lowered to “Outperform” at Raymond James $WIBC http://t.co/QX0YVdnTws
Stocks News&Markets
22 Apr 15 05:33:23
$WIBC - Wilshire Bancorp Lowered to "Outperform" at Raymond James (WIBC) http://t.co/PGbHvfBc3Q
NASDAQ
22 Apr 15 05:33:23
$WIBC - Wilshire Bancorp Lowered to "Outperform" at Raymond James (WIBC) http://t.co/phhCHHIjbY
Ticker Report
22 Apr 15 05:26:19
Wilshire Bancorp Lowered to “Outperform” at Raymond James $WIBC http://t.co/P5M0YquCCM
Media Sentiment
22 Apr 15 05:24:51
$WIBC received a new alert. Find out why at http://t.co/nZwqReM0tj #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 197
US Stock Ratings
22 Apr 15 05:24:30
Raymond James downgrades $WIBC to Outperform. http://t.co/MvhLIv82G1
SIAnalystWire
22 Apr 15 05:24:00
Raymond James Downgrades Wilshire Bancorp $WIBC to Outperform http://t.co/VvrwFVyu3a
Media Sentiment
22 Apr 15 05:17:04
$WIBC received a new alert. Find out why at http://t.co/nZwqReM0tj #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 193
Analyst Ratings
22 Apr 15 05:16:03
Wilshire Bancorp downgraded by Raymond James to outperform. http://t.co/t6z7EijEhv $WIBC #WIBC
US Consumer News
22 Apr 15 05:16:00
Wilshire Bancorp downgraded by Raymond James to outperform. http://t.co/iIkTlH8XvN $WIBC #WIBC
00243828411350
21 Apr 15 19:09:39
RT @IHPosts: clayton: WIBC 10.41 Wilshire Bancorp $WIBC added to my http://t.co/c3FW3JFkeZ
Investors Hangout
21 Apr 15 15:47:17
clayton: WIBC 10.41 Wilshire Bancorp $WIBC added to my http://t.co/c3FW3JFkeZ
Investors Hangout
21 Apr 15 15:47:16
clayton: WIBC 10.41 Wilshire Bancorp $WIBC stock added to http://t.co/BLhhyQcNOw
Investors Hangout
21 Apr 15 15:47:06
clayton: WIBC 10.41 Wilshire Bancorp $WIBC added to my http://t.co/EgvXxKruxs
Investors Hangout
21 Apr 15 15:47:05
clayton: WIBC 10.41 Wilshire Bancorp $WIBC stock added to http://t.co/HDJui1ApdT
clayton
21 Apr 15 15:40:16
WIBC 10.41 Wilshire Bancorp $WIBC added to my watch list. Right now with WIBC I am watching the last price 10. http://t.co/JueyKV6ibq
clayton
21 Apr 15 15:39:54
$WIBC WIBC 10.41 Wilshire Bancorp $WIBC stock added to my watch list. Right now with WIBC I am watching the last pri http://t.co/RxtAGn6yrv
dailystockplays.com
21 Apr 15 14:37:50
Expansion Breakout http://t.co/SPsXCg8KWy $CACB $ATI $OCR $GLOG $PLXS $AST $SBNY $FIVN $SPCB $BIOL $WIBC $CISG $QUNR $TSCO $NWBI $SNCR $ATEN
Steve Feffer
21 Apr 15 06:53:09
$WIBC clear after beat
Steve Feffer
21 Apr 15 06:41:03
$WIBC over 10.32 spot
The Legacy News
21 Apr 15 05:57:12
Wilshire Bancorp $WIBC Issues Quarterly Earnings Results, Beats Estimates By $0.04 EPS http://t.co/knHnKXLq0S
Investors Hangout
20 Apr 15 22:10:09
$PGNRF Ideas Click Here: http://t.co/AtkNPldUZe Also See: $WDAS $WIBC $WGCBP $PGCG ~
StockEarnings.com
20 Apr 15 16:20:24
$WIBC Earnings result is already out. Check out historical price reaction after ER. http://t.co/ZZNCPgLMqB
Donald J Olive
20 Apr 15 15:11:39
RT @Briefingcom: $WIBC: Wilshire Bancorp beats by $0.04, beats on revs http://t.co/vgl9RSJ83i
Sleek Money
20 Apr 15 15:05:18
Wilshire Bancorp $WIBC Announces Quarterly Earnings Results, Beats Estimates By $0.04 EPS http://t.co/3wEhblmTWS
dan hecht
20 Apr 15 15:04:51
RT @Briefingcom: $WIBC: Wilshire Bancorp beats by $0.04, beats on revs http://t.co/vgl9RSJ83i
Briefing.com
20 Apr 15 15:04:01
$WIBC: Wilshire Bancorp beats by $0.04, beats on revs http://t.co/vgl9RSJ83i
US Banking News
20 Apr 15 14:46:38
Wilshire Bancorp $WIBC Announces Earnings Results, Beats Estimates By $0.04 EPS http://t.co/lThZGXtB7t
Ticker Report
20 Apr 15 14:41:26
Wilshire Bancorp $WIBC Announces Earnings Results, Beats Estimates By $0.04 EPS http://t.co/gdXTOOZAGd
WKRB News
20 Apr 15 14:36:45
Wilshire Bancorp $WIBC Announces Earnings Results, Beats Estimates By $0.04 EPS http://t.co/dS6VrIZ7MY
US Banking News
20 Apr 15 14:07:51
Wilshire Bancorp announces earnings. $0.24 EPS. Beats estimates. $51.80m revenue. http://t.co/P3wzgNJ4PH $WIBC #WIBC
$Stocknewsalerts
20 Apr 15 13:15:10
$WIBC Wilshire Bancorp, Inc. Press Release: Wilshire Bancorp Reports Net Income of $18.6 Million or $0.24 Per From our Stock News Alerts App
BreakingStocksNews
20 Apr 15 13:05:10
$WIBC: Wilshire Bancorp Reports Net Income of $18.6 Million or $0.24 Per ...: http://t.co/Pa7HdgWZrt
Media Sentiment
20 Apr 15 13:05:00
$WIBC received a new alert. Find out why at http://t.co/nZwqReM0tj #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 440
Financial Stocks
20 Apr 15 13:04:14
Wilshire Bancorp beats by $0.04, beats on revenue http://t.co/mJOcDHYJyK $WIBC
SA Breaking News
20 Apr 15 13:04:14
Wilshire Bancorp beats by $0.04, beats on revenue http://t.co/tIPee9lN7v $WIBC
Stocks News&Markets
20 Apr 15 13:03:08
$WIBC - Wilshire Bancorp Reports Net Income of $18.6 Million or $0.24 Per Share for First Quarter 2015 http://t.co/JndOpoALMD
				
				
  +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.