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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. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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Results for FRC
Capital Market Labs
24 May 15 18:55:14
$FRC vs. $ZION vs. $SIVB vs. $BAP Compared Across 9 Critical Measures http://t.co/76ABFAnd5V http://t.co/1ZjotCAj6g
Infernoman
24 May 15 18:35:17
RT @crypto_chatter: 10 Most Mentioned - last 6 hours: $NMC 7 $NEOS 7 $LTCD 7 $MAX 5 $BLK 5 $SHELL 4 $QRK 3 $COOL 3 $CAT 2 $FRC 2 #altcoin #…
ahmad
24 May 15 18:00:44
RT @crypto_chatter: 10 Most Mentioned - last 6 hours: $NMC 7 $NEOS 7 $LTCD 7 $MAX 5 $BLK 5 $SHELL 4 $QRK 3 $COOL 3 $CAT 2 $FRC 2 #altcoin #…
FINTECHNA
24 May 15 18:00:38
RT crypto_chatter: 10 Most Mentioned - last 6 hours: $NMC 7 $NEOS 7 $LTCD 7 $MAX 5 $BLK 5 $SHELL 4 $QRK 3 $COOL 3 $CAT 2 $FRC 2 #altcoin #b…
CryptoChatter
24 May 15 18:00:05
10 Most Mentioned - last 6 hours: $NMC 7 $NEOS 7 $LTCD 7 $MAX 5 $BLK 5 $SHELL 4 $QRK 3 $COOL 3 $CAT 2 $FRC 2 #altcoin #btc #fintech
Capital Market Labs
24 May 15 12:14:23
$CIT vs. $BAP vs. $FRC vs. $FNFG Compared Across 9 Critical Measures http://t.co/pgU4TbXe77 http://t.co/EtUck8QLjv
Capital Market Labs
24 May 15 11:21:29
$HBAN vs. $CMA vs. $FRC vs. $CIT Compared Across 9 Critical Measures http://t.co/Qrw04OB9Vf http://t.co/huT2kYOfbl
Capital Market Labs
24 May 15 10:28:43
$ZION vs. $FRC vs. $SIVB vs. $CMA Compared Across 9 Critical Measures http://t.co/Q6zVW6XAKj http://t.co/Rnl8qB9520
CryptoCannon
24 May 15 09:50:31
RT @fintechna: RT crypto_chatter: 10 Most Mentioned - last 6 hours: $START 13 $LTCD 12 $WDC 12 $DASH 9 $VRC 8 $FRC 7 $POT 7 $HYP 7 $NMC 7 $…
AllThingsBitcoin
24 May 15 09:48:14
RT @crypto_chatter: 10 Most Mentioned - last 6 hours: $START 13 $LTCD 12 $WDC 12 $DASH 9 $VRC 8 $FRC 7 $POT 7 $HYP 7 $NMC 7 $XPY 6 #altcoin…
FINTECHNA
24 May 15 09:46:07
RT crypto_chatter: 10 Most Mentioned - last 6 hours: $START 13 $LTCD 12 $WDC 12 $DASH 9 $VRC 8 $FRC 7 $POT 7 $HYP 7 $NMC 7 $XPY 6 #altcoin …
Hey Bitcoin!
24 May 15 09:42:20
RT @crypto_chatter: 10 Most Mentioned - last 6 hours: $START 13 $LTCD 12 $WDC 12 $DASH 9 $VRC 8 $FRC 7 $POT 7 $HYP 7 $NMC 7 $XPY 6 #altcoin…
Altcoin Trader
24 May 15 09:38:54
RT @crypto_chatter: 10 Most Mentioned - last 6 hours: $START 13 $LTCD 12 $WDC 12 $DASH 9 $VRC 8 $FRC 7 $POT 7 $HYP 7 $NMC 7 $XPY 6 #altcoin…
528Crypto
24 May 15 09:15:41
RT @crypto_chatter: 10 Most Mentioned - last 6 hours: $START 13 $LTCD 12 $WDC 12 $DASH 9 $VRC 8 $FRC 7 $POT 7 $HYP 7 $NMC 7 $XPY 6 #altcoin…
CryptoCannon
24 May 15 09:15:28
RT @crypto_chatter: 10 Most Mentioned - last 6 hours: $START 13 $LTCD 12 $WDC 12 $DASH 9 $VRC 8 $FRC 7 $POT 7 $HYP 7 $NMC 7 $XPY 6 #altcoin…
CryptoChatter
24 May 15 09:00:04
10 Most Mentioned - last 6 hours: $START 13 $LTCD 12 $WDC 12 $DASH 9 $VRC 8 $FRC 7 $POT 7 $HYP 7 $NMC 7 $XPY 6 #altcoin #btc #fintech
AllThingsBitcoin
24 May 15 08:45:13
RT @crypto_chatter: 10 Most Mentioned - last 6 hours: $START 13 $POT 12 $VRC 12 $ZRC 12 $XPY 11 $WDC 10 $LTCD 9 $FRC 8 $QRK 7 $NMC 7 #altco…
Hey Bitcoin!
24 May 15 08:37:07
RT @crypto_chatter: 10 Most Mentioned - last 6 hours: $START 13 $POT 12 $VRC 12 $ZRC 12 $XPY 11 $WDC 10 $LTCD 9 $FRC 8 $QRK 7 $NMC 7 #altco…
528Crypto
24 May 15 08:10:09
RT @crypto_chatter: 10 Most Mentioned - last 6 hours: $START 13 $POT 12 $VRC 12 $ZRC 12 $XPY 11 $WDC 10 $LTCD 9 $FRC 8 $QRK 7 $NMC 7 #altco…
FINTECHNA
24 May 15 08:00:48
RT crypto_chatter: 10 Most Mentioned - last 6 hours: $START 13 $POT 12 $VRC 12 $ZRC 12 $XPY 11 $WDC 10 $LTCD 9 $FRC 8 $QRK 7 $NMC 7 #altcoi…
2J KING DARTH SOSA
24 May 15 08:00:23
RT @crypto_chatter: 10 Most Mentioned - last 6 hours: $START 13 $POT 12 $VRC 12 $ZRC 12 $XPY 11 $WDC 10 $LTCD 9 $FRC 8 $QRK 7 $NMC 7 #altco…
CryptoChatter
24 May 15 08:00:04
10 Most Mentioned - last 6 hours: $START 13 $POT 12 $VRC 12 $ZRC 12 $XPY 11 $WDC 10 $LTCD 9 $FRC 8 $QRK 7 $NMC 7 #altcoin #btc #fintech
CryptoOz.com
24 May 15 07:47:20
RT @crypto_chatter: 10 Most Mentioned - last 6 hours: $NEOS 11 $START 10 $POT 8 $ZRC 8 $NMC 8 $VRC 7 $HYP 7 $XPY 7 $DOGED 7 $FRC 6 #altcoin…
FINTECHNA
24 May 15 07:45:55
RT crypto_chatter: 10 Most Mentioned - last 6 hours: $NEOS 11 $START 10 $POT 8 $ZRC 8 $NMC 8 $VRC 7 $HYP 7 $XPY 7 $DOGED 7 $FRC 6 #altcoin …
AllThingsBitcoin
24 May 15 07:40:42
RT @crypto_chatter: 10 Most Mentioned - last 6 hours: $NEOS 11 $START 10 $POT 8 $ZRC 8 $NMC 8 $VRC 7 $HYP 7 $XPY 7 $DOGED 7 $FRC 6 #altcoin…
Hey Bitcoin!
24 May 15 07:37:03
RT @crypto_chatter: 10 Most Mentioned - last 6 hours: $NEOS 11 $START 10 $POT 8 $ZRC 8 $NMC 8 $VRC 7 $HYP 7 $XPY 7 $DOGED 7 $FRC 6 #altcoin…
The Legacy News
24 May 15 07:27:41
Canyon Services Group Receives C$10.79 Average PT from Analysts $FRC http://t.co/Ey0L584Pce
Infernoman
24 May 15 07:25:38
RT @crypto_chatter: 10 Most Mentioned - last 6 hours: $NEOS 11 $START 10 $POT 8 $ZRC 8 $NMC 8 $VRC 7 $HYP 7 $XPY 7 $DOGED 7 $FRC 6 #altcoin…
528Crypto
24 May 15 07:08:48
RT @crypto_chatter: 10 Most Mentioned - last 6 hours: $NEOS 11 $START 10 $POT 8 $ZRC 8 $NMC 8 $VRC 7 $HYP 7 $XPY 7 $DOGED 7 $FRC 6 #altcoin…
CryptoChatter
24 May 15 07:00:05
10 Most Mentioned - last 6 hours: $NEOS 11 $START 10 $POT 8 $ZRC 8 $NMC 8 $VRC 7 $HYP 7 $XPY 7 $DOGED 7 $FRC 6 #altcoin #btc #fintech
CryptoAhab
24 May 15 06:38:09
RT @fintechna: RT crypto_chatter: 10 Most Mentioned - last 6 hours: $START 8 $SYNC 7 $HYP 7 $BLU 6 $XPY 5 $BET 5 $FRC 5 $TRON 5 $EFL 5 $POT…
CryptoCannon
24 May 15 06:36:26
RT @fintechna: RT crypto_chatter: 10 Most Mentioned - last 6 hours: $START 8 $SYNC 7 $HYP 7 $BLU 6 $XPY 5 $BET 5 $FRC 5 $TRON 5 $EFL 5 $POT…
CryptoCalamity
24 May 15 06:35:34
RT @fintechna: RT crypto_chatter: 10 Most Mentioned - last 6 hours: $START 8 $SYNC 7 $HYP 7 $BLU 6 $XPY 5 $BET 5 $FRC 5 $TRON 5 $EFL 5 $POT…
Not Wolong
24 May 15 06:34:32
RT @fintechna: RT crypto_chatter: 10 Most Mentioned - last 6 hours: $START 8 $SYNC 7 $HYP 7 $BLU 6 $XPY 5 $BET 5 $FRC 5 $TRON 5 $EFL 5 $POT…
Crypto Backroom
24 May 15 06:31:09
RT @fintechna: RT crypto_chatter: 10 Most Mentioned - last 6 hours: $START 8 $SYNC 7 $HYP 7 $BLU 6 $XPY 5 $BET 5 $FRC 5 $TRON 5 $EFL 5 $POT…
Social Alpha Inc
24 May 15 06:30:48
Hot stocks on social media right now: $SYNC $MINT $FRC $HE $POT $LTC Trade social sentiment @ http://t.co/JXotpHpS8Z #trading #stocks
Game Of Shills
24 May 15 06:30:42
RT @fintechna: RT crypto_chatter: 10 Most Mentioned - last 6 hours: $START 8 $SYNC 7 $HYP 7 $BLU 6 $XPY 5 $BET 5 $FRC 5 $TRON 5 $EFL 5 $POT…
BitBunsen
24 May 15 06:29:53
RT @fintechna: RT crypto_chatter: 10 Most Mentioned - last 6 hours: $START 8 $SYNC 7 $HYP 7 $BLU 6 $XPY 5 $BET 5 $FRC 5 $TRON 5 $EFL 5 $POT…
Banking Big Bits
24 May 15 06:29:33
RT @fintechna: RT crypto_chatter: 10 Most Mentioned - last 6 hours: $START 8 $SYNC 7 $HYP 7 $BLU 6 $XPY 5 $BET 5 $FRC 5 $TRON 5 $EFL 5 $POT…
FINTECHNA
24 May 15 06:15:49
RT crypto_chatter: 10 Most Mentioned - last 6 hours: $START 8 $SYNC 7 $HYP 7 $BLU 6 $XPY 5 $BET 5 $FRC 5 $TRON 5 $EFL 5 $POT 5 #altcoin #bt…
CryptoAhab
24 May 15 06:14:10
RT @crypto_chatter: 10 Most Mentioned - last 6 hours: $START 8 $SYNC 7 $HYP 7 $BLU 6 $XPY 5 $BET 5 $FRC 5 $TRON 5 $EFL 5 $POT 5 #altcoin #b…
CryptoCannon
24 May 15 06:13:03
RT @crypto_chatter: 10 Most Mentioned - last 6 hours: $START 8 $SYNC 7 $HYP 7 $BLU 6 $XPY 5 $BET 5 $FRC 5 $TRON 5 $EFL 5 $POT 5 #altcoin #b…
Banking Big Bits
24 May 15 06:12:48
RT @crypto_chatter: 10 Most Mentioned - last 6 hours: $START 8 $SYNC 7 $HYP 7 $BLU 6 $XPY 5 $BET 5 $FRC 5 $TRON 5 $EFL 5 $POT 5 #altcoin #b…
Crypto Backroom
24 May 15 06:08:49
RT @crypto_chatter: 10 Most Mentioned - last 6 hours: $START 8 $SYNC 7 $HYP 7 $BLU 6 $XPY 5 $BET 5 $FRC 5 $TRON 5 $EFL 5 $POT 5 #altcoin #b…
CryptoCalamity
24 May 15 06:07:07
RT @crypto_chatter: 10 Most Mentioned - last 6 hours: $START 8 $SYNC 7 $HYP 7 $BLU 6 $XPY 5 $BET 5 $FRC 5 $TRON 5 $EFL 5 $POT 5 #altcoin #b…
Game Of Shills
24 May 15 06:06:34
RT @crypto_chatter: 10 Most Mentioned - last 6 hours: $START 8 $SYNC 7 $HYP 7 $BLU 6 $XPY 5 $BET 5 $FRC 5 $TRON 5 $EFL 5 $POT 5 #altcoin #b…
BitBunsen
24 May 15 06:05:56
RT @crypto_chatter: 10 Most Mentioned - last 6 hours: $START 8 $SYNC 7 $HYP 7 $BLU 6 $XPY 5 $BET 5 $FRC 5 $TRON 5 $EFL 5 $POT 5 #altcoin #b…
Not Wolong
24 May 15 06:04:41
RT @crypto_chatter: 10 Most Mentioned - last 6 hours: $START 8 $SYNC 7 $HYP 7 $BLU 6 $XPY 5 $BET 5 $FRC 5 $TRON 5 $EFL 5 $POT 5 #altcoin #b…
Altcoin Trader
24 May 15 06:03:43
RT @crypto_chatter: 10 Most Mentioned - last 6 hours: $START 8 $SYNC 7 $HYP 7 $BLU 6 $XPY 5 $BET 5 $FRC 5 $TRON 5 $EFL 5 $POT 5 #altcoin #b…
528Crypto
24 May 15 06:03:30
RT @crypto_chatter: 10 Most Mentioned - last 6 hours: $START 8 $SYNC 7 $HYP 7 $BLU 6 $XPY 5 $BET 5 $FRC 5 $TRON 5 $EFL 5 $POT 5 #altcoin #b…
				
				
  +Follow August 18, 2013 11:06AM
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