logo
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

4 Strong Regional Bank Stocks with Potential

  +Follow August 18, 2013 11:06AM
Share:
Tickers Mentioned:

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. 

Results for FRC
Byrne Bray
19 Apr 14 02:38:09
$FRC Living in the New York Times World http://t.co/1hE99DUC1U
Byrne Bray
19 Apr 14 02:21:35
$FRC Nigeria's Lamido Sanusi Saga: Lessons for Kenya http://t.co/4do0F4WixB
Byrne Bray
19 Apr 14 02:16:06
$FRC Iran, Azerbaijan Stress Readiness to Hold Joint Economic Commission Meeting http://t.co/UoOu6fkqJD
Byrne Bray
19 Apr 14 01:36:34
$FRC The Whispers In The Weathercock's Ears http://t.co/iMwLfbDXvI
Byrne Bray
19 Apr 14 01:25:04
$FRC Dancing forward http://t.co/R59aESBnMT
Byrne Bray
19 Apr 14 00:35:48
$FRC We treasure our Sierra Madre http://t.co/XMWmJTuKf9
Byrne Bray
19 Apr 14 00:29:33
$FRC Michael Janeway, Former Editor of The Boston Globe, Dies at 73 http://t.co/R8SyLTxVKf
Byrne Bray
19 Apr 14 00:12:34
$FRC Runner returns to Boston, to finish what he started http://t.co/9eGuwIIxMO
Clinton Majors
18 Apr 14 20:15:17
$FRC Buying or selling? $WMB $ADT $IR Visit http://t.co/QQ2vag5oHL
Fergus Hillo
18 Apr 14 19:12:02
$UAL Some Stocks to Watch $MCY $FRC $DUST #financialnews http://t.co/5q7t3ws057
Byrne Bray
18 Apr 14 18:32:06
$FRC Capturing the world through photography, video and multimedia http://t.co/E7RX3SEKwc
Pike Gall
18 Apr 14 17:26:42
Seeking the next hot #pennystock $EQT $FRC $KMX $GRPN Click http://t.co/33K8uWM56s
Ward Anders
18 Apr 14 17:02:16
Stocks to Watch this week $FII $FRC $OAS $YOD View now http://t.co/dhYirvhQV3
Byrne Bray
18 Apr 14 16:09:33
$FRC Socio-economic development: Govt to spend $1.6b in Balochistan, says PM http://t.co/vx1y4Vz5FU
Brecken Kingston
18 Apr 14 15:53:03
$FRC #Stock Watchlist. Dont be left behind $KMX $LMCA $WTW #equity http://t.co/oxnvrGBUKp
Byrne Bray
18 Apr 14 14:41:33
$FRC GOP eyes Montana Senate seat after Baucus' departure; Dems counter with ... http://t.co/ljRZ1Dk8JQ
Jaydan Kyler
18 Apr 14 13:14:36
$FRC First Republic Beats Earning http://t.co/r7xsJ5MfqX
Tressie Fortenberry
18 Apr 14 12:56:42
$FRC Some Stocks to Watch $CPN $G $IBM Try this http://t.co/amYqmFvChA
Ward Dissan
18 Apr 14 08:32:28
Couple of Stocks you should Watch $FRC $R $ADT $IR #overvalued http://t.co/JZoqhvOLfP
Small Cap Updates
18 Apr 14 04:14:04
Looking for the next $LUK $FRC $BEAV $PCLN Check out http://t.co/iOeyXfCcK3
Dmitri Magnuson
18 Apr 14 03:55:13
Get research on $DE $FRC $LNG $SLV #financial http://t.co/xCVKPhsGzv
Mitchell Grooms
18 Apr 14 03:08:55
Earnings For 4 Banks Mostly Weak Amid Mortgage Slump http://t.co/sA8Dg6LnZc #IBDNews via @IBDinvestors $BAC $PNC $USB $FRC $JPM $WFC
Lars Meath
18 Apr 14 03:05:12
$FRC First Republic Beats Earning http://t.co/z4H3W5gJon
Braylin McQuillen
18 Apr 14 03:01:06
Are you looking to buy $ZTS $FRC $GCI $S View now http://t.co/YRXc222PVz
Byrne Bray
18 Apr 14 00:16:34
$FRC Landscaper killed by crash remembered http://t.co/M2ev4CJ4ia
Laird McQuillen
17 Apr 14 23:32:18
#Stocks you might want to hold onto $INCY $FRC $GCI $CI Must see http://t.co/3j8GV7kP6y
Byrne Bray
17 Apr 14 19:06:13
$FRC CEO Interview: Global Cobalt Corp (TSX.V:GCO) CEO Erin Chutter http://t.co/u9r9Owm9PE
Byrne Bray
17 Apr 14 16:50:04
$FRC On this day: First Bob-a-Job Week by Scout Movement http://t.co/xJhISg53wJ
Leighton Cameron
17 Apr 14 16:39:36
Great #Stock Newsletter on $ZION $FRC $NEE $EPZM Check out http://t.co/ZMSoTLKam2
Deon Carter
17 Apr 14 16:16:18
Todays movers to research $C $FRC $CVS $FB #wallstreet http://t.co/5GgvMAnEQP
Silvana Orozco
17 Apr 14 15:45:19
$WCC Considering investing in $KMT $FRC $DF #financialnews http://t.co/vzIuikFGZ6
Al Keeton
17 Apr 14 15:00:47
Are you thinking of selling $MNK $FRC $DDD $NUAN Goto http://t.co/ZGQLjCsgHR
Investment Engineer
17 Apr 14 15:00:46
$FRC Find more winners like $GLNG $ANSS $SLV Check out http://t.co/fOF8G1Inln
Byrne Bray
17 Apr 14 14:41:04
$FRC Soccer Boon for Calik-Owned Bank Given Red Card: Turkey Credit http://t.co/eKWeh4tadh
Stock Herald
17 Apr 14 14:18:13
$FRC: Will This Upgrade Help First Republic Bank (FRC) Stock Today? http://t.co/DK5yah81YM
Yahaira Landry
17 Apr 14 14:10:17
Get Free research on $COG $FRC $UFS $CSIQ #investing http://t.co/ZRJoveu0zm
StockNews24
17 Apr 14 14:06:50
$FRC - Will This Upgrade Help First Republic Bank (FRC) Stock Today? -> http://t.co/YGFh6lqKbZ #stock #stocks #stockaction
WallStreetConsensus
17 Apr 14 13:52:23
Upgrades 4/17: $RALY, $GOGO, $NFLX, $SCTY, $UFPI, $SPLK, $BAC, $BWP, $EIX, $EFX, $WTFC, $FRC, $HBHC http://t.co/kJpNzj3fKs
Vaughan Lowsley
17 Apr 14 13:39:02
Are you putting your money in $BEN $FRC $R $AMZN #investing http://t.co/G3rmSsBrwa
StockNewsNet
17 Apr 14 12:30:02
$FRC - First Republic Beats Earnings on Strong Revs -> http://t.co/691yelJKx3 #stock #stocks #stockaction
Mind Equity
17 Apr 14 11:54:42
Keeping my Eye on $UA $FRC $AXP $AIG Must see http://t.co/3vP5tzW7KG
Market Newswire
17 Apr 14 11:30:50
First Republic Beats Earnings on Strong Revs - April 17, 2014 - http://t.co/EPVwewPOo0 $FRC #newsfeed #invest #markets
Byrne Bray
17 Apr 14 11:25:34
$FRC First Republic Beats Earnings on Strong Revs http://t.co/Qzo0i1cttp
Cortez Kinlan
17 Apr 14 11:16:51
$FRC Bearish or Bullish on these #stocks $SLGN $BYI $CHTP Give it a try http://t.co/J1iRFhlHfa
Ansel Gonzalez
17 Apr 14 11:03:47
$AMAT Awesome #Stock #Research $ETR $FRC $FB #economy http://t.co/QOfc7oYKUY
Ignacio Johnson
17 Apr 14 10:36:33
$FRC Small-cap stocks making 52-wk highs $OAS $BBT $TSLA #equity http://t.co/I1oiFbiXYO
Lilly Bynum
17 Apr 14 10:31:15
Small-cap stocks breaking 52-wk high prices $DE $FRC $WSM $DO #singedinvestor http://t.co/geUCegcXrT
Serge Adams
17 Apr 14 09:55:37
#Stock Market Reports you need on $QEP $FRC $PCLN $S #financial http://t.co/LIkFocQapb
Wanetta Zhang
17 Apr 14 09:05:27
#Stocks you might want to buy $FLR $FRC $TXN $GAIN #NSE http://t.co/iQkz2tWI5V
Mike Lansing
17 Apr 14 08:34:37
Should you hold or add to $APOL $FRC $BEAV $IR #financial http://t.co/JkkM0PlMT6
				
				
  +Follow August 18, 2013 11:06AM
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.