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. 

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


Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for FRC
Capital Market Labs
28 Mar 15 23:57:56
$FRC vs. $CIT vs. $SIVB vs. $BAP Compared Across 9 Critical Measures Chart: http://t.co/DJ1sfSutNl
Capital Market Labs
28 Mar 15 17:20:10
$FRC Revenue is Rising. Chart: http://t.co/gwHygiBE7x https://t.co/QN3BwQxDXx
Capital Market Labs
28 Mar 15 12:02:14
$BAP vs. $CIT vs. $FRC vs. $ZION Compared Across 9 Critical Measures Chart: http://t.co/LfR1oXWPDv
Capital Market Labs
28 Mar 15 11:02:15
$ZION vs. $SIVB vs. $CIT vs. $FRC Compared Across 9 Critical Measures Chart: http://t.co/r0Tf21z856
WKRB News
27 Mar 15 07:45:50
Canyon Services Group insider Purchases C$33,378.00 in Stock $FRC http://t.co/RDbRhJGlf1
WKRB News
27 Mar 15 06:45:00
Canyon Services Group insider Sells C$164,347.50 in Stock $FRC http://t.co/1uuy7n2eOX
Sleek Money
27 Mar 15 06:34:19
Maxim Group Boosts First Republic Bank Price Target to $65.00 $FRC http://t.co/5FjRtrcuJ4
ProTradersNews
27 Mar 15 06:30:03
$FRC: Maxim Group Boosts First Republic Bank Price Target to $65.00 (FRC): http://t.co/gSanrQNXin
Capital Market Labs
27 Mar 15 04:19:22
$CIT, $FNFG, $FRC, $SIVB, $ZION Book Value Trend Comparison Chart: http://t.co/sP9tlVdjOI
Capital Market Labs
27 Mar 15 03:35:44
$CIT, $BAP, $SIVB, $FRC, $ZION Book Value Trend Comparison Chart: http://t.co/znxD9AULAi
Capital Market Labs
26 Mar 15 20:45:28
$CIT, $FNFG, $ZION, $FRC, $BAP Book Value Trend Comparison Chart: http://t.co/LpaEBT2kQV
Capital Market Labs
26 Mar 15 18:49:28
$CIT, $FRC, $FNFG, $BAP, $SIVB Book Value Trend Comparison Chart: http://t.co/FbGDzNAdQf
Capital Market Labs
26 Mar 15 17:51:35
$CIT, $FRC, $ZION, $FNFG Book Value Trend Comparison Chart: http://t.co/Ztqu3DoMqQ
Capital Market Labs
26 Mar 15 10:19:28
$FRC Assets are Increasing. Chart: http://t.co/WPmZlkTBXY
Sleek Money
26 Mar 15 08:05:25
Todd Garth Thue Buys 5,000 Shares of Canyon Services Group Stock $FRC http://t.co/KzshOQoNOG
The Legacy News
26 Mar 15 07:27:14
Maxim Group Increases First Republic Bank Price Target to $65.00 $FRC http://t.co/y9XHbkylsz
Capital Market Labs
26 Mar 15 00:23:15
$CMA vs. $CIT vs. $FRC vs. $HBAN Compared Across 9 Critical Measures Chart: http://t.co/poOallvwlI
Sleek Money
25 Mar 15 17:05:10
Insider Selling: Canyon Services Group insider Todd Garth Thue Sells 25,000 Shares of Stock $FRC http://t.co/d1eKifso1y
Capital Market Labs
25 Mar 15 16:59:13
$CIT, $FRC, $HBAN, $SIVB, $SBNY Book Value Trend Comparison http://t.co/9kCBucZ4FM https://t.co/O7J0gCDLXd
US Banking News
25 Mar 15 16:42:03
Insider Buying: Canyon Services Group insider Acquires 5,000 Shares of Stock $FRC http://t.co/jA7w8cpmXL
US Banking News
25 Mar 15 16:41:56
Canyon Services Group insider Sells C$164,347.50 in Stock $FRC http://t.co/iFJF3Gmk3x
Capital Market Labs
25 Mar 15 14:09:17
$HBAN, $FRC, $CIT, $SIVB, $SBNY Bad Loans Trend Comparison http://t.co/SiQmotRWW0 https://t.co/O7J0gCDLXd
Capital Market Labs
25 Mar 15 11:39:22
$CIT, $FRC, $HBAN, $SIVB, $SBNY Book Value Trend Comparison http://t.co/9kCBucZ4FM https://t.co/O7J0gCDLXd
StockNewsWires
25 Mar 15 08:35:04
$FRC: First Republic Bank Price Target Increased to $65.00 by Analysts at ...: http://t.co/R7EH7K1lXS
ProTradersNews
25 Mar 15 07:30:07
$SILC $FRC: Worth Watching Stocks: http://t.co/AIz3TCfDX9 (NASDAQ:AMZN), Tiffany ...: http://t.co/WPSbwWyOTr
Capital Market Labs
25 Mar 15 06:17:31
$CIT, $FRC, $HBAN, $SIVB, $SBNY Book Value Trend Comparison http://t.co/9kCBucZ4FM https://t.co/O7J0gCDLXd
Tracour
25 Mar 15 06:12:20
Top buy ratings for today $MDVN $FRC and $STMP http://t.co/NVgVI9e1SJ
ProTradersNews
25 Mar 15 05:55:09
$FRC: First Republic Bank Receives a Buy from Maxim Group: http://t.co/fxgijYSP9V
Analyst Ratings
25 Mar 15 05:52:51
First Republic Bank Receives a Buy from Maxim Group $FRC http://t.co/xKM2MJgnjy
dailystockplays.com
25 Mar 15 05:20:36
Analyst Target Raises http://t.co/dYhzdim61W $AMPH $ATRC $CYT $EPRS $FRC $GIII $HA $HOLX $MDVN $MNK $SONC $STMP
US Banking News
25 Mar 15 05:17:12
First Republic Bank Price Target Raised to $65.00 $FRC http://t.co/6Fef01X0nv
ProVesting
25 Mar 15 04:39:05
$FRC: First Republic Bank Price Target Raised to $65.00 (FRC): http://t.co/vdInKj0Hmo
US Consumer News
25 Mar 15 04:30:36
First Republic Bank's PT raised by Maxim Group to $65.00. buy rating. http://t.co/j8IpmbprYp $FRC #FRC
Analyst Ratings
25 Mar 15 04:30:28
First Republic Bank's PT raised by Maxim Group to $65.00. buy rating. http://t.co/1ZTcfBtoa8 $FRC #FRC
Capital Market Labs
24 Mar 15 23:39:27
$CIT, $FRC, $HBAN, $SIVB, $SBNY Book Value Trend Comparison http://t.co/9kCBudgG4m https://t.co/O7J0gCmb5F
Capital Market Labs
24 Mar 15 23:29:30
$FRC Revenue is Growing http://t.co/I5l3boFhSl
Capital Market Labs
24 Mar 15 21:22:56
$CIT, $FRC, $HBAN, $SIVB, $SBNY Book Value Trend Comparison http://t.co/9kCBudgG4m https://t.co/O7J0gCmb5F
4-traders.com
24 Mar 15 04:32:09
#Canyon Services : Announces Quarterly Dividend http://t.co/WW4fhsktOi $FRC
4-traders.com
24 Mar 15 04:32:09
#Canyon Services : Reports Record Fourth Quarter, 2015 Capital… http://t.co/FxO9KGrjNv $FRC
GoUrl Cryptocoin API
23 Mar 15 13:24:06
NEW Voting for #FreiCoin #FRC coin to add $FRC to GoUrl.io Payment Gateway. VOTE NOW - https://t.co/OSFqBunYsD http://t.co/YDcVxSUOrO
Penny Stock Secret
23 Mar 15 07:43:32
Yesterday We Made $94,000 In Just One Trade More Info Here http://t.co/NovWYe2RAx .. $FRC-D $FRC-E $FRF
Penny Stock Secret
23 Mar 15 07:42:32
Yesterday We Made $94,000 In Just One Trade More Info Here http://t.co/NovWYe2RAx .. $FRC-A $FRC-B $FRC-C
Penny Stock Secret
23 Mar 15 07:41:32
Yesterday We Made $94,000 In Just One Trade More Info Here http://t.co/NovWYe2RAx .. $FR $FRA $FRC
WKRB News
23 Mar 15 07:12:22
Canyon Services Group insider Sells C$102,565.38 in Stock $FRC http://t.co/3r5mOEg0ah
				
				
  +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.