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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
OTPicks.com
18 Apr 15 10:31:31
http://t.co/stbZjDAnbM clayton: FRC 58.89 First Republic Bank $FRC added to my: clayton http://t.co/W3cHebplGi http://t.co/stbZjDAnbM
OTPicks.com
18 Apr 15 10:31:29
http://t.co/QkCFZ8H3V8 clayton: FRC 58.89 First Republic Bank $FRC added to my: clayton http://t.co/UKSAZagT5h http://t.co/QkCFZ8H3V8
WKRB News
18 Apr 15 10:14:34
First Republic Bank Stock Rating Reaffirmed by Deutsche Bank $FRC http://t.co/dgjsvAMSmQ
StockNewsWires
18 Apr 15 06:40:14
$FRC: First Republic Bank Price Target Increased to $70.00 by Analysts at ...: http://t.co/HhgQPix5HP
Sleek Money
18 Apr 15 06:35:47
First Republic Bank Price Target Increased to $70.00 by Analysts at Maxim Group $FRC http://t.co/cLHQJbbJgl
BreakingStocksNews
18 Apr 15 05:28:08
$FRC: First Republic Bank Announces $0.15 Quarterly Dividend (FRC): http://t.co/bHcliw7Fft
Capital Market Labs
18 Apr 15 05:02:29
$FRC vs. $SIVB vs. $FNFG Compared Across 9 Critical Measures http://t.co/XuMfv6nSVC http://t.co/bcpA0xznkD
The Legacy News
18 Apr 15 04:57:39
First Republic Bank Announces $0.15 Quarterly Dividend $FRC http://t.co/3pHoeMoo8G
Capital Market Labs
18 Apr 15 00:25:24
$CMA vs. $HBAN vs. $BAP vs. $FRC Compared Across 9 Critical Measures http://t.co/RkV2kMUsZN http://t.co/FWnK2v3x1M
Capital Market Labs
17 Apr 15 22:46:25
$CMA vs. $FRC vs. $ZION vs. $BAP Compared Across 9 Critical Measures http://t.co/QJOuOFeww7 http://t.co/TSTbD9fwuI
Capital Market Labs
17 Apr 15 22:40:26
$CMA vs. $BAP vs. $FRC vs. $CIT Compared Across 9 Critical Measures http://t.co/yHlV0VtC7c http://t.co/N3pHp4lg9E
Extreme Stocks
17 Apr 15 20:51:47
clayton: FRC 58.89 First Republic Bank $FRC added to my http://t.co/tPtmR2BphR
clayton
17 Apr 15 20:36:20
FRC 58.89 First Republic Bank $FRC added to my watch list. Right now with FRC I am watching the last price 58. http://t.co/TdI9whSwdM
clayton
17 Apr 15 20:35:58
$FRC FRC 58.89 First Republic Bank $FRC stock added to my watch list. Right now with FRC I am watching the last pri http://t.co/RcjpFSvOFO
IH NASDAQ OMX
17 Apr 15 20:02:59
$FRC Day High Click Here: http://t.co/Czh8WwTgXV Also See: $SGMA $ARHVF $CRRC $ARKAY ~
Lucky Jimmy
17 Apr 15 19:41:37
FRC Stock up +0.72% percent Today $FRC High is at 58.95 and the Low 58.34 with current volume of 1,115,725. Fi http://t.co/kRuTYH4ByX
Lucky Jimmy
17 Apr 15 19:41:15
$FRC FRC up +0.72% percent Today $FRC Stock High is at 58.95 and the Low 58.34 with current volume of 1,115,725. Fi http://t.co/N1PAQOU8La
Jake13
17 Apr 15 19:21:17
FRC Year to date has changed +12.99% percent. +2.54% in the last 30 days. $FRC First Republic Bank Full breakd http://t.co/VjTQSAJ6AN
Jake13
17 Apr 15 19:20:55
$FRC FRC Stock year to date has changed +12.99% percent. +2.54% in the last 30 days. $FRC First Republic Bank Full http://t.co/6OLunUyirm
Abbie Grandstaff
17 Apr 15 19:14:44
RT @chartguy89: FRC 58.89 First Republic Bank Stock Charts $FRC Last Updated: 04/17/15 Last price: 58.89 Total volume: 1,115,7 http://t.co/…
chartguy89
17 Apr 15 19:09:07
FRC 58.89 First Republic Bank Stock Charts $FRC Last Updated: 04/17/15 Last price: 58.89 Total volume: 1,115,7 http://t.co/fvX3MOjU4A
chartguy89
17 Apr 15 19:08:52
$FRC FRC 58.89 First Republic Bank Stock Charts $FRC Last Updated: 04/17/15 Last price: 58.89 Total volume: 1,115,7 http://t.co/z0JvigO4hf
Capital Market Labs
17 Apr 15 15:41:48
$SIVB vs. $FRC vs. $BPOP vs. $CYN Compared Across 9 Critical Measures Chart: http://t.co/k6kssK0cQx
Capital Market Labs
17 Apr 15 15:30:26
$FRC Revenue is Increasing. Here's the Chart: http://t.co/8EcO6bmqKD http://t.co/u3FuNQiPHi
US Banking News
17 Apr 15 14:21:58
First Republic Bank $FRC to Issue Quarterly Dividend of $0.15 http://t.co/i26nVEmecP
Ticker Report
17 Apr 15 14:11:55
First Republic Bank $FRC to Issue Quarterly Dividend of $0.15 http://t.co/rJmjkBKMIM
US Banking News
17 Apr 15 13:51:38
First Republic Bank announces quarterly dividend of $0.15. Payable on 5/14/2015. 1.02% Yield. http://t.co/3h9jbNG8wL $FRC #FRC
Analyst Ratings
17 Apr 15 12:09:21
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Ticker Report
17 Apr 15 10:57:00
First Republic Bank Stock Rating Reaffirmed by Deutsche Bank $FRC http://t.co/ebBaOn0GQI
NASDAQ
17 Apr 15 10:46:10
$FRC - First Republic Bank Stock Rating Reaffirmed by Deutsche Bank (FRC) http://t.co/oF6VLKWweG
BreakingStocksNews
17 Apr 15 10:45:03
$FRC: First Republic Bank Receives a Hold fromTime Deutsche Bank: http://t.co/FJJDVfrHS3
US Banking News
17 Apr 15 10:23:05
Deutsche Bank Reiterates “Hold” Rating for First Republic Bank $FRC http://t.co/mKalm29v5s
US Consumer News
17 Apr 15 10:16:14
First Republic Bank's hold rating reiterated at Deutsche Bank. $64.00 PT. http://t.co/14chbgpldB $FRC #FRC
Analyst Ratings
17 Apr 15 10:16:12
First Republic Bank's hold rating reiterated at Deutsche Bank. $64.00 PT. http://t.co/Ns5ZK6ZLYB $FRC #FRC
SWINGSTOCKTRADERS
17 Apr 15 08:42:32
BUY $FRC at Price: 58.50 Stop: 57.46, Loss: 1.8% Target T1: 62.53, Profit: 6.9% http://t.co/zh2dqB9Kwp
StockNewsWires
17 Apr 15 05:26:03
$FRC: First Republic Gains on Q1 Earnings Beat; Revenues Up: http://t.co/GrjdjLhoiw
US Banking News
17 Apr 15 04:54:34
First Republic Bank Given New $70.00 Price Target at Maxim Group $FRC http://t.co/VVbvR5Kumv
Analyst Ratings
17 Apr 15 04:46:17
First Republic Bank's PT raised by Maxim Group to $70.00. buy rating. http://t.co/flRAyFXwzW $FRC #FRC
US Consumer News
17 Apr 15 04:45:43
First Republic Bank's PT raised by Maxim Group to $70.00. buy rating. http://t.co/6m9JsQmDIm $FRC #FRC
NASDAQ
17 Apr 15 04:42:14
$FRC - First Republic Bank Price Target Increased to $70.00 by Analysts at Maxim Group (FRC) http://t.co/NAF3P2XVG5
Ticker Report
17 Apr 15 04:41:43
First Republic Bank Price Target Increased to $70.00 by Analysts at Maxim Group $FRC http://t.co/xq1WR7D0VW
ProVesting
17 Apr 15 04:34:02
$FRC: First Republic Bank Receives a Buy fromTime Maxim Group: http://t.co/dKe5fR2z2X
Capital Market Labs
17 Apr 15 01:38:29
$SIVB vs. $FNFG vs. $CIT vs. $FRC Compared Across 9 Critical Measures Chart: http://t.co/xFEqPbU4E9 #CML
Capital Market Labs
17 Apr 15 00:50:51
$FRC vs. $SIVB vs. $FNFG vs. $ZION Compared Across 9 Critical Measures Chart: http://t.co/SxCt9HfiyM #CML
Capital Market Labs
16 Apr 15 23:50:18
$HBAN vs. $FRC vs. $ZION vs. $CIT Compared Across 9 Critical Measures Chart: http://t.co/XuWlHRo6iV #CML
Capital Market Labs
16 Apr 15 22:48:35
$ZION vs. $CMA vs. $CIT vs. $FRC Compared Across 9 Critical Measures Chart: http://t.co/PdSKVu6hIi
Capital Market Labs
16 Apr 15 15:29:25
$FRC Revenue is Increasing. Chart: http://t.co/gwHygiBE7x #CML
dailystockplays.com
16 Apr 15 14:45:45
Parabolic SAR Buy http://t.co/QCB7S7cVYk $ILMN $FXB $TRV $IGOV $SPW $AXP $NSRGY $PSX $FXA $GGG $AKAM $AZN $JCOM $KITE $VGSH $LAMR $FRC $WIP
Capital Market Labs
16 Apr 15 13:16:45
$CMA vs. $BAP vs. $ZION vs. $FRC Compared Across 9 Critical Measures Chart: http://t.co/5hicG5gwXz #CML
Capital Market Labs
16 Apr 15 12:04:08
$BAP vs. $FRC vs. $CIT vs. $ZION Compared Across 9 Critical Measures Chart: http://t.co/LGmfgzS77G #CML
				
				
  +Follow August 18, 2013 11:06AM
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