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4 Strong Regional Bank Stocks with Potential

  +Follow August 18, 2013 11:06AM
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Financials are on an upswing as of late, and have a strong chance to overtake technology and once again become the most valuable sector in the S&P 500.

The Big Four banks often get the most attention from investors and experience the most volume, but there are thousands of stocks to choose from in the financial sector, and many great banking stocks still out there. The question is, of course, which ones are worth investing in.

After the Great Recession some investors are understandably leery of investing in banks, but not all banking stocks are prone to the volatility of highly leveraged, highly complex megabanks. Regional bank stocks tend to have strong roots in basic, fundamental banking, and can be stable and quite healthy, even in economic downturns. As interest rates continue their rise that began earlier this summer, banks can expect to reap nice profits.

To find the banks trading on the American market with strongest fundamentals, we applied the following four pieces of criteria to every bank stock on the market:

1) The company has a P/C and P/B greater than 1

It is important for finance companies to have strong book value and cash in addition to validation of these assets by the market.  As a result, a P/C (profit to cash ratio) or P/B (price to book ratio) of 1 should be a minimum “floor” for investing.  

2)      The bank has an operating margin greater than 25% 

Operating margin shows how efficiently a company is operating is business after a good is sold.  Gross profit-operating costs.  The operating margin is more appropriate for banks because the costs associated with operating are much more significant for a bank than the cogs. 

3) The bank has an ROI greater than 25% 

Return on Investment, or ROI, shows how well a company is using its invested capital.  Since banks are essentially made up of all invested capital, this is a very important statistic.

4) The bank is a mid-cap or larger

Banks with a designation of “mid” market capitalization have a valuation of at least $2 billion. They tend to be slightly less volatile than small and micro-cap “penny stock” banks.

There are currently four publically-traded banks in the US that can answer “yes” to all of these questions, and thus can be considered to have strong fundamentals for a regional bank:

First Republic Bank (FRC)

This San Francisco-based bank has 59 locations, with the majority located in Northern California and a dozen located on the Eastern seabord. The bank has been buoyed by rising home prices in San Francisco, which is currently the fourth most expensive city to live in in the country.

First Republic is up 32.22 percent on the year to hit $43.83 a share.

Bank of Hawaii Corporation (BOH)

This Honolulu, Ha.-based bank is Hawaii’s second oldest bank, and has been in operation since 1897. The bank is unique in that it has locations in American unincorporated territories, with locations in Guam, Saipan, and Palau.

Bank of Hawaii is up 20.21 percent on the year to hit $54.89 a share.

First Citizens Bancshares Inc. (FCNCA)

First Citizens Bank (and its subsidiary IronStone) services the Southeastern United States, with 493 locations spread out over 17 states. The company was founded in 1898 under the name of Bank of Smithfield.

First Citizens is up 24.61 percent on the year to hit $208.73 a share.

East West Bancorp, Inc. (EWBC)

East West is a California-based bank that operates predominantly in California, with scattered branches in New York, Georgia, Massachusetts, Texas and Washington. The bank is popular with Asian immigrants in te US, and has several locations in Hong Kong and China.

East West is up 39.26 percent on the year to hit $31.04 a share. 

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.


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Results for FRC
WKRB News
22 Oct 14 08:19:48
Keefe, Bruyette & Woods Reaffirms “Outperform” Rating for First Republic Bank $FRC http://t.co/dkf9TMZ2oG
HotKeyTrading
21 Oct 14 09:30:05
Annual Lows: $ARMH $CUR $BIOS $SHOO $NCR $IBM $PHG $HIL $PBCT $URBN $RPRX $CS $WTFC $FRC $FRAN http://t.co/Vv2VEn80mr #stockpicks #nasdaq
HotKeyTrading
20 Oct 14 21:30:05
Annual Lows: $CUR $BIOS $SHOO $NCR $IBM $PHG $HIL $PBCT $URBN $RPRX $CS $WTFC $FRC $FRAN $MWW http://t.co/XQITF0lRKD #markets #investors
BNK Invest
20 Oct 14 12:02:37
First Republic Bank's Series E Preferred Stock Shares Cross 6.5% Yield Mark $FRC.PRE $FRC #preferredstocks http://t.co/rMIkwF5XZS
Sleek Money
20 Oct 14 10:52:41
First Republic Bank Given Outperform Rating at Keefe, Bruyette & Woods $FRC http://t.co/VdYecMS2lc
US Banking News
20 Oct 14 09:49:46
First Republic Bank Rating Reiterated by Keefe, Bruyette & Woods $FRC http://t.co/yNonz9ONDj
HotKeyTrading
20 Oct 14 09:30:05
Annual Lows: $BIOS $SHOO $NCR $IBM $PHG $HIL $PBCT $URBN $RPRX $CS $WTFC $FRC $FRAN $MWW $SLH http://t.co/Vv2VEn80mr #wallstreet #finance
Media Sentiment
20 Oct 14 09:25:03
$FRC received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 327
US Consumer News
20 Oct 14 09:20:26
First Republic Bank's outperform rating reiterated at Keefe, Bruyette & Woods. $55.00 PT. http://t.co/kVpfgcD3m0 $FRC #FRC
Analyst Ratings
20 Oct 14 09:19:33
First Republic Bank's outperform rating reiterated at Keefe, Bruyette & Woods. $55.00 PT. http://t.co/DKWJ7B0ZnH $FRC #FRC
HotKeyTrading
19 Oct 14 21:30:05
Annual Lows: $HIL $PBCT $URBN $RPRX $CS $WTFC $FRC $FRAN $MWW $SLH $FCS $WGO $ICD $ERIC $STO http://t.co/Vv2VEn80mr #dow #daytrader #stock
HotKeyTrading
19 Oct 14 09:30:04
Annual Lows: $HIL $PBCT $URBN $RPRX $CS $WTFC $FRC $FRAN $MWW $SLH $FCS $WGO $ICD $ERIC $STO http://t.co/Vv2VEn80mr #stockpicks #daytrading
HotKeyTrading
18 Oct 14 21:30:05
Annual Lows: $HIL $PBCT $URBN $RPRX $CS $WTFC $FRC $FRAN $MWW $SLH $FCS $WGO $ICD $ERIC $STO http://t.co/Vv2VEn80mr #investors #watchlist
HotKeyTrading
18 Oct 14 09:30:04
Annual Lows: $HIL $PBCT $URBN $RPRX $CS $WTFC $FRC $FRAN $MWW $SLH $FCS $WGO $ICD $ERIC $STO http://t.co/Vv2VEn80mr #swingtrading #nasdaq
TickerChirp
18 Oct 14 09:19:04
The Top in Twitter About $FRC (FIRST REP BK SAN FRAN symbol frc) on 10/18/2014 http://t.co/gM29DJFRMF
HotKeyTrading
17 Oct 14 21:30:06
Annual Lows: $HIL $PBCT $URBN $RPRX $CS $WTFC $FRC $FRAN $MWW $SLH $FCS $WGO $ICD $ERIC $STO http://t.co/XQITF0lRKD #finance #trader #nyse
HotKeyTrading
17 Oct 14 09:30:04
Annual Lows: $URBN $RPRX $CS $WTFC $FRC $FRAN $MWW $SLH $FCS $WGO $ICD $ERIC $STO $HCBK $WBS http://t.co/Vv2VEn80mr #trading #finance #mkt
Homegameralert
17 Oct 14 06:06:58
really good report with $FRC, should be good for other regional like $ZION
Market Newswire
17 Oct 14 06:02:04
First Republic (FRC) Q3 Earnings Beat on Higher Revenues - October 17, 2014 - http://t.co/vrzbyGHNwq $FRC #news #stockmarket #stock
Sleek Money
17 Oct 14 04:07:41
First Republic Bank $FRC Announces Quarterly Earnings, Beats Expectations By $0.06 EPS http://t.co/NR9mI20md7
HotKeyTrading
16 Oct 14 21:30:06
Annual Lows: $WTFC $FRC $FRAN $MWW $SLH $FCS $ICD $ERIC $STO $WBS $LYG $MFC $BHI $EBAY $AEG http://t.co/XQITF0lRKD #dow #trading #trader
US Banking News
16 Oct 14 11:04:50
First Republic Bank Sees Unusually-High Trading Volume Following Better-Than-Expected Earnings $FRC http://t.co/i7xPlOAxr3
Ticker Report
16 Oct 14 10:59:35
First Republic Bank Sees Unusually-High Trading Volume Following Better-Than-Expected Earnings $FRC http://t.co/YzifPJOzSD
InvestProfits
16 Oct 14 10:31:40
FIRST REPUBLIC BANK (FRC) Up 2% from 52 Week Low http://t.co/IGXZWsBIEY $FRC #investor #stocks #investing
Briefing.com
16 Oct 14 07:08:54
$FRC: First Republic Bank beats by $0.11, reports revs in-line http://t.co/qhuy1Y4hat
Large Void Bot
16 Oct 14 07:00:02
Conference call: (10:00): $AF, $BMI, $BGG, $FRC, $IIIN, $WGO, $DOV, $SNA
Seeking Alpha
16 Oct 14 06:55:06
First Republic Bank (FRC) Q3 2014 Results - Earnings Call Webcast http://t.co/vcnq3vObGg $FRC
EarningsCast
16 Oct 14 06:50:58
Listen to $FRC Q3 2014 earnings call - live at 10:00 AM, ondemand after - http://t.co/Vr9UtI9tAp
US Banking News
16 Oct 14 06:44:59
First Republic Bank $FRC Declares Quarterly Dividend of $0.14 http://t.co/xREwLWj7Kv
Sleek Money
16 Oct 14 06:38:59
First Republic Bank $FRC Declares Quarterly Dividend of $0.14 http://t.co/QILq9XYQQi
US Banking News
16 Oct 14 06:33:23
First Republic Bank announces quarterly dividend of $0.14. Payable on 11/13/2014. 1.21% Yield. http://t.co/naxpsSTMy5 $FRC #FRC
Ticker Report
16 Oct 14 06:13:26
First Republic Bank $FRC Releases Quarterly Earnings, Beats Estimates By $0.06 EPS http://t.co/FB8S7h4eqi
US Banking News
16 Oct 14 05:54:27
First Republic Bank $FRC Announces Quarterly Results http://t.co/Iw7TYyjvXR
InterCooler
16 Oct 14 05:52:40
First Republic Bank $FRC Announces Quarterly Results http://t.co/IeH79eo1Dh
MarketCurrents
16 Oct 14 05:34:16
More on First Republic results http://t.co/BeeUJc9OvA #premarket $FRC
US Banking News
16 Oct 14 05:17:07
First Republic Bank announces earnings. $0.81 EPS. Beats estimates. http://t.co/z42snfxhU8 $FRC #FRC
Media Sentiment
16 Oct 14 05:15:13
$FRC received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 167
BV Financials
16 Oct 14 05:10:54
$FRC First Republic Reports Strong Quarterly Earnings.. http://t.co/I7Kw57mqH4
NASDAQ
16 Oct 14 05:04:49
$FRC - First Republic Reports Strong Quarterly Earnings http://t.co/ZnN5SRsWxQ
MarketCurrents
16 Oct 14 05:04:22
First Republic Bank beats by $0.07, beats on revenue http://t.co/LVBwUnpO07 #premarket $FRC
Marassasta
16 Oct 14 02:43:10
RT @bored2tears: (1/2) #Earnings on deck: $ADS $BHI $BAX $BBT $BX $MYCC $CY $DHR $DAL $DOV $FCS $FITB $FCFS $FRC $GS $HOMB $HLSS #stocks
bored2tears
16 Oct 14 02:33:57
(1/2) #Earnings on deck: $ADS $BHI $BAX $BBT $BX $MYCC $CY $DHR $DAL $DOV $FCS $FITB $FCFS $FRC $GS $HOMB $HLSS #stocks
EarningsTrading
16 Oct 14 02:02:59
$FRC Earnings out BMO EPS Estimate 0.79 Other Earnings this week http://t.co/gVRsyZd0te
TRADEaddiction
15 Oct 14 23:39:55
notable #US earnings before mkt: $BBT $FITB $FRC $BX $DAL $GS. there are way more but focusiing pays off.
Stock Market Picks
15 Oct 14 19:12:51
Earnings Realeases for October 16th (before the open): $ADS $BAX $BBT $BHI $BX $CY $DAL $DHR $DOV $FCS $FITB $FRC $GS $GWW $HLSS $HOMB $IIIN
gordon gekko is god
15 Oct 14 15:55:38
Notable earnings before Thursday’s open http://t.co/eh5L1iNDUG $ADS, $BAX, $BBT, $BHI, $BX, $CY, $DAL, $DHR, $DOV, $FCFS, $FCS, $FITB, $FRC
The Fly
15 Oct 14 12:28:52
$PM $UNH $GS $DHR $BAX $DAL $BBT $PPG $BHI $GWW $FITB $ADS $DOV $MAT $SNA $BX $FRC $SON $WBS $WGO Notable comp... http://t.co/wfy9vQ22g8
				
				
  +Follow August 18, 2013 11:06AM
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