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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
Lucretia
7 Jul 15 15:04:37
$FRC First Republic Bank adds to its wealth-management constellation http://t.co/zYojtjl75a
WKRB News
7 Jul 15 05:36:48
Canyon Services Group Inc. To Go Ex-Dividend on July 8th $FRC http://t.co/nVqVTgHm6e
Chris Mchugh
6 Jul 15 06:26:40
RT @AmyAtrade: Trade setups for tomorrow July 6, 2015 $SPY $TIF $ROK $NBIX $MYCC $MAN $FRC and more at http://t.co/yZn3BmBZK5
Tom Wrigley
6 Jul 15 05:11:26
RT @AmyAtrade: Trade setups for tomorrow July 6, 2015 $SPY $TIF $ROK $NBIX $MYCC $MAN $FRC and more at http://t.co/yZn3BmBZK5
Analyst Actions
6 Jul 15 02:42:02
$FRC: Analyst action by Deutsche Bank on First Republic Bank: http://t.co/4jSswH44sF http://t.co/thGL2il956
Penny Stock Secret
6 Jul 15 00:45:26
$71,000 in ONE TRADE!! By Follwing Their Signals More Info Here http://t.co/SVqoMkrw2z .. $FRC-D $FRC-E $FRF
Penny Stock Secret
6 Jul 15 00:44:26
$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
6 Jul 15 00:43:26
$71,000 in ONE TRADE!! By Follwing Their Signals More Info Here http://t.co/SVqoMkrw2z .. $FR $FRA $FRC
by the seaside
5 Jul 15 22:15:59
RT @AmyAtrade: Trade setups for tomorrow July 6, 2015 $SPY $TIF $ROK $NBIX $MYCC $MAN $FRC and more at http://t.co/yZn3BmBZK5
PositionUpdates
5 Jul 15 15:06:58
RT @AmyAtrade: Trade setups for tomorrow July 6, 2015 $SPY $TIF $ROK $NBIX $MYCC $MAN $FRC and more at http://t.co/yZn3BmBZK5
Jewell Kelsch
5 Jul 15 14:45:00
RT @AmyAtrade: Trade setups for tomorrow July 6, 2015 $SPY $TIF $ROK $NBIX $MYCC $MAN $FRC and more at http://t.co/yZn3BmBZK5
StockEarnings.com
5 Jul 15 13:31:15
$FRC ER on 7/16 Before Open. SP were DOWN 12 times out of last 18 qtrs (66%) in Earnings reactions http://t.co/FHccv7QuBG
무
5 Jul 15 12:59:18
RT @AmyAtrade: Trade setups for tomorrow July 6, 2015 $SPY $TIF $ROK $NBIX $MYCC $MAN $FRC and more at http://t.co/yZn3BmBZK5
Amy
5 Jul 15 12:57:45
Trade setups for tomorrow July 6, 2015 $SPY $TIF $ROK $NBIX $MYCC $MAN $FRC and more at http://t.co/yZn3BmBZK5
The Legacy News
5 Jul 15 04:27:37
First Republic Bank Upgraded at Zacks $FRC http://t.co/9MKqFgS7mY
Ophir Gottlieb
4 Jul 15 18:44:15
$FRC Trade Card -> http://t.co/zLFBCE6T5k http://t.co/aoYZgpVQ4l
WKRB News
4 Jul 15 04:50:24
First Republic Bank Earns “Buy” Rating from Maxim Group $FRC http://t.co/bVX1I0RARJ
WKRB News
4 Jul 15 04:34:53
Zacks Upgrades First Republic Bank to Buy $FRC http://t.co/zyzNdEvpXG
BreakingStocksNews
4 Jul 15 04:29:05
$FRC: Zacks Upgrades First Republic Bank to Buy (FRC): http://t.co/z76KC0Wl30
Capital Market Labs
4 Jul 15 03:54:22
$FRC Trade Card -> http://t.co/c01GVygguD http://t.co/YxMHiUrnhM
Analyst Actions
4 Jul 15 00:47:01
$FRC: Analyst action by Deutsche Bank on First Republic Bank: http://t.co/4jSswH44sF http://t.co/7xELJDdb0Y
sasha ivanov
3 Jul 15 21:01:31
Top tags $007 -- 200 $8BIT -- 102 $16BIT -- 18 $ADC -- 6 $FRC -- 4
sasha ivanov
3 Jul 15 21:01:31
Trending $ADC -- 6 $FRC -- 4 $LIMX -- 4 $CLR -- 3 $BLITZ -- 2
Dakota Financial
3 Jul 15 20:54:41
First Republic Bank Upgraded by Zacks to Buy $FRC http://t.co/4JPVQtxb9m
ProVesting
3 Jul 15 20:54:03
$FRC: First Republic Bank Upgraded by Zacks to Buy (FRC): http://t.co/1ZLxHZlw2L
Ticker Report
3 Jul 15 20:51:29
First Republic Bank Upgraded to Buy at Zacks $FRC http://t.co/BhO1fy5Vda
Sleek Money
3 Jul 15 20:50:37
First Republic Bank Upgraded to Buy at Zacks $FRC http://t.co/KIAc9sNbzg
Breaking News Now
3 Jul 15 20:49:03
$FRC: First Republic Bank Upgraded to Buy at Zacks (FRC): http://t.co/LwSfpzBM8R
Media Sentiment
3 Jul 15 20:48:53
$FRC received a new alert. Find out why at http://t.co/nZwqReM0tj #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 110
MarketBeatCom
3 Jul 15 20:46:28
First Republic Bank upgraded by Zacks to buy. $71.00 PT. http://t.co/VTrpxBOjLQ $FRC #FRC
US Consumer News
3 Jul 15 20:42:02
First Republic Bank upgraded by Zacks to buy. $71.00 PT. http://t.co/RLxAFsZm4E $FRC #FRC
clayton
3 Jul 15 18:47:35
TLT iShares Barclays 20+ Year Treasury Bond Fund Tick http://t.co/y8xBdnvnR0 $TLT $FRC $TR $ZIOP #TLT #investing #share
Stock Forums
3 Jul 15 18:46:35
SKF ProShares UltraShort Financials Shares http://t.co/xoOJ7WV2Mq $SKF $ENDP $CRR $FRC #SKF #stocks #invest
clayton
3 Jul 15 18:46:11
RSX Market Vectors Russia ETF Trust 52Wk High http://t.co/gVxs1A0xjD $RSX $DNRG $FRC $CLF #RSX #finance #stocks
IH NASDAQ OMX
3 Jul 15 18:39:03
GFI Gold Fields Ltd. Volume http://t.co/oIrBSqT3Y1 $GFI $FRC $CLF $MFC.TO #GFI #share #stockmarket
Lucky Jimmy
3 Jul 15 18:38:34
FRC First Republic Bank San Francisco California Ask Size http://t.co/fdNAq6dLP2 $FRC $ISR $AMD $CHK #FRC #pennystocks #nasdaq
Emylers
3 Jul 15 18:38:04
FRC First Republic Bank San Francisco California Bid Size http://t.co/sAEy9QpqKz $FRC $BX $LUV $TVIX #FRC #stocks #invest
Emylers
3 Jul 15 18:38:03
FRC First Republic Bank San Francisco California Shares http://t.co/sTMpYYa764 $FRC $GKOS $GPRO $AGG #FRC #invest #stockmarket
Investors Hangout
3 Jul 15 18:38:02
FLTX Fleetmatics Group plc 52Wk High http://t.co/hMCybt3Lwm $FLTX $EWZ $FRC $JDST #FLTX #stock #stock
lookn4wins
3 Jul 15 18:37:07
ECI.TO EnerCare Inc. Filings http://t.co/vTjO7MHJkO $ECI.TO $XIV $OGEN $FRC #ECI.TO #invest #tradeideas
The Legacy News
3 Jul 15 10:42:53
Maxim Group Reiterates Buy Rating for First Republic Bank $FRC http://t.co/eRpiDJXw7E
WKRB News
3 Jul 15 09:52:25
First Republic Bank PT Raised to $69.00 $FRC http://t.co/3L2jPUlPHr
The Legacy News
3 Jul 15 07:42:39
Canyon Services Group Inc. To Go Ex-Dividend on July 8th $FRC http://t.co/590M4R7Ua4
Dakota Financial
3 Jul 15 07:24:51
Canyon Services Group Inc. Declares Quarterly Dividend of C$0.06 $FRC http://t.co/8vfX32Ddsn
Ticker Report
3 Jul 15 07:11:44
Canyon Services Group Inc. to Issue Quarterly Dividend of C$0.06 $FRC http://t.co/3Vl4DoyqYm
Sleek Money
3 Jul 15 07:05:38
Canyon Services Group Inc. to Issue Quarterly Dividend of C$0.06 $FRC http://t.co/CmB7SDm2L5
Analyst Actions
2 Jul 15 19:43:02
$FRC: Analyst action by Deutsche Bank on First Republic Bank: http://t.co/4jSswH44sF http://t.co/JZZOiK1dPS
Sleek Money
2 Jul 15 18:05:42
First Republic Bank Price Target Increased to $69.00 by Analysts at Jefferies Group $FRC http://t.co/05jyNRBdBq
Breaking News
2 Jul 15 18:02:03
$FRC: First Republic Bank Price Target Increased to $69.00 by Analysts at ...: http://t.co/dSqnfPqizs
ProVesting
2 Jul 15 17:14:02
$FRC: First Republic Bank Receives Buy Rating from Maxim Group (FRC): http://t.co/8eFkcEmdKK
				
				
  +Follow August 18, 2013 11:06AM
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