The first quarter of calendar 2008 has witnessed a strange stock market phenomenon. While giants of the Financial Sector have lurched from one business crisis to the next, the modest Regional Banks Industry has quietly recorded sound results. Business conditions have been very challenging for the entire Financial Sector since the second half of 2007. Here is a small capital regional bank with impressive business results during continuing problems for the industry.
This bank has reported net income of 17 cents a share during the Most Recent Quarter. This is more than a 20% increase over the same quarter a year ago. Most of the increase has come from net interest income.
The stock is of a holding company. The operating subsidiary services individuals and small business with a full range of banking products. This includes new technology for online banking, check imaging, electronic data transfers, automated clearing, and remote deposit capture. Modernity has not prevented the bank from continuing the loan business, albeit in a thoroughly professional way. The bank supports proposals for investments in homes and commercial properties. It has been recognized for its extensive support for small business.
The Price to Earnings Ratio has been 13.05 during the last four quarters against 14.75 for the Regional Banks Industry. The bank has also grown faster than its competitors during this period. The stock price has been around $8.60 during the third week of April 2008. It represents superior and durable value in the current investment climate.
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