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Best Regional Bank Stocks || Top 5 Picks

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  • Post last modified:June 2, 2022

Best Regional Bank Stocks

The stock market is one of the biggest ways of making money online as people look to invest their funds optimally in stocks with a variety of strategies.

Many think investment in the stock market is a shortcut to the path of becoming a millionaire and their overconfidence often led to a drastic fall in their assets as wrong choices may lead to heavy losses.

The stock market presents investors with a plethora of choices in terms of listed stocks to invest in divided across various sectors like Information Technology, Metal Industries, banking, FMCG, Airlines, etc.

To help out our readers who invest in stock markets we have decided to focus this article on some of the best regional bank stocks.

More About Regional Banks in the USA

Regional Bank, banks

We have already prepared a list of the best regional bank stock for our readers, but before we move to the list we would like our readers to be well versed in the meaning of Regional Banks in the USA.

A regional bank is a financial institution that serves the banking requirements of the people of a region.

These banks usually have a strong physical presence with a large number of branches spread out in the region of concern.

According to the Federal Reserve Board of the United States of America, a regional bank is a financial institution with a net asset value between $10 billion and $100 billion.

The various services provided by a regional bank are listed below

  • Deposit accounts like checking, savings, and money market accounts
  • Credit cards
  • ATMs
  • Investment brokerage
  • Loans, leases, and mortgages
  • Insurance\

Macroeconomic factors to consider before investing in Best Regional Bank Stocks

MACROECONOMIC FACTORS

Many consider the stock market as a consideration and investors to be gamblers, while the reality is different, but many investors do a trade like gambling without fully understanding all the risks associated with a stock market investment.

To help out our readers to become expert investors and make good investment decisions in the best regional bank stocks we will be discussing some key macro-economic factors one needs to keep an eye on before setting their foot in banking stocks:

  • Interest rates: The interest rate decided by the Federal Reserve Board of the United States of America is a key indicator one should keep an eye out for. Lowering interest rates mean people would be more interested in investing money in other avenues apart from bank deposits while aggressive interest hikes would propel the profitability of banks
  • War Like situation: The current Russia- Ukraine war could be taken as an example. One must refrain from investment in any war-like situation as the outcomes and shockwaves are unpredictable during wars

Factors to look at before selecting the Best regional bank Stock

Some of the key factors an investor should consider before selecting a portfolio of best regional bank stocks are:

  • Macroeconomic stability in terms of inflation, employment rate, and interest rates
  • The financial growth of the bank in terms of net asset value, deposits, and loans
  • Quality of the management in handling challenging situations
  • Profitability of the bank in the last 5 to 10 years
  • The physical presence of the bank
  • Future outlook of the bank and its plans to grow in future

List of Best Regional Bank Stocks

Here we go with our list of best regional bank stocks listed on the US stock exchange

  • 1. Commercia Bank

Market value: $12.4 billion

Research-based price target: $104.31 (with an 11% upside potential)

Recommendation: Moderate Buy

Founder: Elon Farnsworth

CEO: Curtis C farmer since 223 April 2010

Founded: 1849

Business Overview: The Commercia bank is a Dallas-based regional bank. It has nearly 430 branches spread out in Texas, Arizona, California, Florida, and Michigan.

It’s known to be among the top 50 banking institutions in the United States of America.

The bank has a total asset value of $95 billion, a net deposit of $82.3 billion, and $49 billion in loans.

Recent Quarterly update: In its recent quarterly update, it announces a massive surge in the number of loans provided to $48 billion from $300 million

Why we recommend buying stocks of Commercia Bank

  • Strong financial performances over the years and it maintains one of the most asset-sensitive balance sheets among the peer companies in the Regional Bank sector.
  • Strong loan growth
  • It has a higher percentage of cash to earning assets vs competitor companies
  • A number of research analysts maintain a buy call in this stock
  • High physical presence with a good number of branches evenly spread across the Dallas region
  • 2. Synovus Financial

Market value: $6.09 billion

Research-based price target: $61.11 (with a 23% upside potential)

Recommendation: Strong Buy

Revenue : $ 151.2 crores

CEO: Kevin Blair since 22 April 2021

Founded: 1888

Business Overview: The Synovus Financial is a Georgia-based regional bank. The bank functions in both commercial and retail banking domains. Its services include Treasury management, wealth management, private banking, and mortgage services. The bank possesses a net asset value of $57 billion.

Why we recommend buying stocks of Commercia Bank

  • String future outlook outlined by the management with M&A opportunities being looked at for growth
  • New initiatives are being undertaken in corporate and investment banking should fuel growth in wholesale bank and treasury and payment services
  • 3. East West Bancorp

Market value: $11.6 billion

Research-based price target: $102.80 (with a 26% upside potential)

Recommendation: Strong Buy

Founded: 1998

Business overview: Is a subsidiary company of Pasadena. It’s a regional bank with more than $60 billion in total assets. The bank has a physical presence in the United States of America and China with over 120 branches. The bank focuses on serving the immigrant Chinese American community and Chinese immigrants in the United States.

Why we recommend buying stocks of East West Bancorp

  • Presence in 2 of the biggest economies of the world United States of America and China
  • Analysts predict a strong surge in its stock prices
  • The bank has announced the strongest growth in loans which is about 16%.
  • The bank maintains a strong relationship with Chinese Americans helping in good growth
  • 4. Signature bank

Market value: $19.5 billion

Research-based price target: $438.57 (with a 41% upside potential)

Recommendation: Strong Buy

Founded: 2001

CEO: Joseph DePaolo since 2001

Business Overview: It’s a full-fledged commercial bank providing a variety of services to its clients. The bank has a strong physical presence with 37 private client offices spread across cross the metropolitan New York area and in Connecticut, California, and North Carolina. It has a net asset value amounting to more than $118 billion and approximately $106 billion value of deposits.

Why we recommend buying stocks of East West Bancorp

  • The bank has been able to borrow money at a much lower rate of interest and lend back at a much higher rate leading to high profitability and growth.
  • Analysts predict a strong surge in its stock prices
  • The bank has announced a strong performance in 2021 with net interest income increasing by 35.7% year-over-year to $535.9 million due to growth in average interest-earning assets. Higher fees and service charges also resulted in non-interest income improving by 38.4% year-over-year to $33.5 million.
  • Based on research analysts we expect loan growth in the high double digits while the bank’s fees would rise by high single digits.
  • 5. Trustco Bank Corp

Market value: $6.58 billion

Research-based price target: $45.57 (with an 11% upside potential)

Recommendation: Strong Buy

Founded: 1902

CEO: Robert J McCormick (Since Jan 2004)

Business Overview: It is a savings bank based in New York in the United States of America. The bank is involved in the business of personal and business banking services to individuals, partnerships, and corporations. It also operates as a real estate investment trust that acquires, holds, and manages real estate mortgage assets, including residential mortgage loans and mortgage-backed securities.

Why we recommend buying stocks of Trustco Bank Corp

  • Strong growth in last 5 years
  • Top-quality management

Provides a diverse range of services

Final Words…

Bingo!!!!! We have finally arrived at the end of our recommendation on the best regional bank stocks.

We tried to give our readers a comprehensive guide for creating a good portfolio as we discussed the basics of regional banks in the USA, macroeconomic factors to look into, factors to consider while selecting a regional bank stock, and then provided the recommended list of the best regional bank stocks to invest in.

Hopefully, you had a nice time going through our article and would be beneficial for making the correct investment choice.

We would like to however warn you that investing in the stock market is a matter of risk and one needs the patience to realize a profit from being a stock market investor.

Our comprehensive list of best regional bank stocks is some of the well-researched stocks to invest in and we advise our readers to always diversify their investments across various stocks.

Feel free to revisit our website whenever required and enjoy a good time trading and investing in the best regional bank stocks on the USA stock exchange.

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