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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
Sleek Money
30 Jul 15 09:35:50
Canyon Services Group Receives C$10.43 Average PT from Brokerages $FRC http://t.co/U7e4dw6ZJK
WKRB News
30 Jul 15 06:02:16
First Republic Bank Receives $61.77 Average PT from Analysts $FRC http://t.co/RbqKXvHdq6
Ophir Gottlieb
29 Jul 15 17:46:50
Revenue Growth: 25 Largest BANKS ➡ http://t.co/IxrJv823og 1 $SBNY 2 $BAP 3 $FRC - 12 $C 14 $WFC 21 $JPM 23 $BAC http://t.co/UqI80QuniU
Irma Doucet
29 Jul 15 12:08:26
$FRC First Republic Bank to Issue Quarterly Dividend of $0.15 on August 13th (FRC) http://t.co/rmfOhscVJE
Myrollingstocks
29 Jul 15 07:15:36
We are watching $FRC http://t.co/XtQFoNBPOQ
Myrollingstocks
29 Jul 15 07:15:34
We are watching $FRC http://t.co/cac86Jy1fN
Retsialg
29 Jul 15 07:15:34
We are watching $FRC http://t.co/pgIiZjX1hX
myrollingstocks
29 Jul 15 07:15:33
We are watching $FRC http://t.co/tEPEFbjV2t
Capital Market Labs
29 Jul 15 04:06:20
$FRC High Fundamental Rating -> http://t.co/iNZ4uj7V1r http://t.co/KRa7o3GMBB
StockNewsWires
29 Jul 15 04:02:03
$AUPH $FRC: Trader's Watch List: Cadence Design Systems Inc. (NASDAQ:CDNS ...: http://t.co/zZWtJhzqYZ
ProVesting
28 Jul 15 12:47:05
$FRC: Stock in Motion: FIRST REPUBLIC BANK (NYSE:FRC): http://t.co/XDQXWTgkxq
Capital Market Labs
28 Jul 15 11:48:05
Interactive Chart -> http://t.co/43j7pIjvNx $FRC Assets and Earnings are Rising. http://t.co/z1S9cPSyRy
Capital Market Labs
28 Jul 15 10:06:04
Interactive Chart -> http://t.co/ZwY3KpFvTz $FRC Assets are Rising. http://t.co/MfspylSh6w
DailyStockPicks
28 Jul 15 07:21:25
$OCLS cheap health care stock. Price target of $5. 200%+ upside $NUS $PAA $FRC $CHH $MLI $CHDN investors read http://t.co/rWpJvFmAFr
Penny Stock Secret
28 Jul 15 01:22:23
$71,000 in ONE TRADE!! By Follwing Their Signals More Info Here http://t.co/SVqoMkrw2z .. $FRC-D $FRC-E $FRF
Penny Stock Secret
28 Jul 15 01:21:23
$71,000 in ONE TRADE!! By Follwing Their Signals More Info Here http://t.co/SVqoMkrw2z .. $FRC-A $FRC-B $FRC-C
Penny Stock Secret
28 Jul 15 01:20:23
$71,000 in ONE TRADE!! By Follwing Their Signals More Info Here http://t.co/SVqoMkrw2z .. $FR $FRA $FRC
Capital Market Labs
27 Jul 15 15:51:08
Interactive Chart -> http://t.co/YO2J3uX1Xy $FRC Revenue and Earnings are Increasing. http://t.co/tGNrlt45eY
Ophir Gottlieb
27 Jul 15 11:02:51
Interactive Chart -> http://t.co/SlZUnvYUut $FRC Assets and Earnings are Rising. http://t.co/17aDeriSJv
Dividend.com
27 Jul 15 10:40:24
6 Stocks Going Ex-Dividend on July 28th http://t.co/CvJTbrT3lO $CAG $FRC $ADTN $BSRR $ERF $MSB #dividend
Ticker Report
27 Jul 15 07:41:46
Canyon Services Group Given Average Recommendation of “Buy” by Brokerages $FRC http://t.co/VhxMrGUxbk
Dakota Financial
27 Jul 15 07:38:52
Canyon Services Group Given Average Recommendation of “Buy” by Brokerages $FRC http://t.co/VlGzR5VXA6
Ticker Report
27 Jul 15 07:26:50
First Republic Bank Receives Consensus Recommendation of “Hold” from Brokerages $FRC http://t.co/18sGrKfCuh
dividata.com
27 Jul 15 06:00:22
Tomorrow's ex-dividend dates $CAG $FRC $SKT $SPN $ERF and 8 more http://t.co/8K76LaiyrB $$
Dakota Financial
27 Jul 15 04:38:55
First Republic Bank to Issue Quarterly Dividend of $0.15 on August 13th $FRC http://t.co/hiut1nZTef
Capital Market Labs
26 Jul 15 15:26:56
Interactive Chart -> http://t.co/yGzhfzYjXG $FRC Earnings are Growing. http://t.co/wfwUzx7ID6
Capital Market Labs
26 Jul 15 14:48:57
Interactive Chart -> http://t.co/43j7pIjvNx $FRC Assets and Earnings are Rising. http://t.co/lSx0bIy4a4
Capital Market Labs
26 Jul 15 10:33:17
Interactive Chart -> http://t.co/ZwY3KpFvTz $FRC Assets are Rising. http://t.co/Hqj3CAsVFU
Analyst Actions
25 Jul 15 18:41:02
$FRC: Analyst action by RBC Capital on First Republic Bank: http://t.co/ZhtE6P05Qg http://t.co/Kn2NMkhPMv
Capital Market Labs
25 Jul 15 15:10:51
Interactive Chart -> http://t.co/YO2J3veCP6 $FRC Revenue and Earnings are Increasing. http://t.co/0t49hroWRp
StockNewsWires
25 Jul 15 10:23:05
$FRC: First Republic Bank Cut to Hold at Zacks (FRC): http://t.co/2xAV2mMZ31
WKRB News
25 Jul 15 10:22:20
First Republic Bank Cut to Hold at Zacks $FRC http://t.co/CmmG0vGOtg
Capital Market Labs
25 Jul 15 06:42:20
Interactive Chart -> http://t.co/hEnBHc8UMv $FRC Revenue is Expanding. http://t.co/F8w7TOuWSW
Ticker Report
24 Jul 15 13:41:51
Weekly Analysts’ Ratings Changes for First Republic Bank $FRC http://t.co/edy8YOC8Zz
Dakota Financial
24 Jul 15 13:39:19
Weekly Analysts’ Ratings Changes for First Republic Bank $FRC http://t.co/0JsDOBwOGy
MarketBeatCom
24 Jul 15 12:43:16
Get the latest news and updates for $OHI $FRC $DCIX $ARIA $ENI automatically with MarketBeat Daily http://t.co/nSJuDsYidj
Dakota Financial
24 Jul 15 12:09:13
First Republic Bank Stock Rating Lowered by Zacks $FRC http://t.co/gkDoF75UF4
Somanath
24 Jul 15 09:37:18
lookn4wins : FRC.TO Canyon Services Group, Inc. Prev Close http://t.co/z23cjhjJoL $FRC.… http://t.co/H4oq4hA1x3) http://t.co/PQDBCvQTL4
Clair Voight
24 Jul 15 08:17:08
$FRC First Republic Bank Lowered to "Hold" at Zacks (FRC) http://t.co/VIvlzQRdZn
Jack Trader
24 Jul 15 08:17:03
$FRC Ex-Dividend Reminder: ConAgra Foods, First Republic Bank and Northwest ... http://t.co/xs1S2Oc5v6
Capital Market Labs
24 Jul 15 07:51:26
Interactive Chart -> http://t.co/YO2J3veCP6 $FRC Revenue and Earnings are Increasing. http://t.co/wGsZFAV0IU
BNK Invest
24 Jul 15 07:48:51
Ex-Dividend Reminder: ConAgra Foods, First Republic Bank and Northwest Bancshares $CAG $FRC $NWBI #dividends http://t.co/RWZyi8vYGe
Analyst Actions
24 Jul 15 07:44:02
$FRC: Analyst action by RBC Capital on First Republic Bank: http://t.co/ZhtE6P05Qg http://t.co/FyP0nkJxVW
ProVesting
24 Jul 15 07:29:15
$CAG $FRC: Ex-Dividend Reminder: ConAgra Foods, First Republic Bank and ...: http://t.co/kiwzwkeEmQ
Ophir Gottlieb
24 Jul 15 03:46:53
Interactive Chart -> http://t.co/CrFcbt6CQv $FRC Revenue is Increasing. http://t.co/H1TqnUIjnx
Capital Market Labs
23 Jul 15 13:05:08
Interactive Chart -> http://t.co/43j7pIB6F5 $FRC Assets and Earnings are Expanding. http://t.co/mfPEA9gNPz
Capital Market Labs
23 Jul 15 07:09:05
Interactive Chart -> http://t.co/yGzhfzYjXG $FRC Earnings are Growing. http://t.co/MEsUkNsSSQ
WKRB News
23 Jul 15 04:57:34
First Republic Bank Upgraded at Zacks $FRC http://t.co/mHgFcEwRzc
Breaking News Now
23 Jul 15 04:57:03
$FRC: Why First Republic (FRC) Stock Might be a Great Pick: http://t.co/oBJ5EL0YLV
StockNewsWires
23 Jul 15 01:48:02
$FRC: Analyst Price Target Update on FIRST REPUBLIC BANK (NYSE:FRC): http://t.co/P0P6wHTRON
				
				
  +Follow August 18, 2013 11:06AM
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