This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 Tiny Banks With Double-Digit Revenue Growth

NEW YORK ( TheStreet) -- As we saw last week when Morgan Stanley (MS) popped 12%, investors are eager to invest in banks that are growing revenue, which isn't easy in the midst of a weak economic recovery.

TheStreet has identified 10 small-cap community banks that posted second-quarter revenue numbers rising in the double digits from a year earlier.

At this point in the credit cycle, bottom-line earnings performance for many of the best-known banking names have been boosted by the release of loan loss reserves. To get to the real the revenue picture, SNL Financial looks at pre-provision net revenue, defined as a bank's tax-adjusted net interest income plus its non-interest income, net of non-credit-related expenses.

To come up with our list, we isolated bank holding companies with market capitalization of less than a billion, showing double-digit year-over-year increases in pre-provision net revenue for the second quarter, while also showing revenue improvements from the previous quarter.

Of course, our list is limited to companies that reported through last Friday. We have featured the 10 names meeting the criteria that are the most actively traded.

All of these names were profitable during the second quarter. Some have grown revenue through mergers. Some have seen a vast revenue improvement, but are still working through problem loans. Some are priced cheaply to forward earnings. Some have already seen shares shoot up and look expensive. Two of them feature attractive dividend yields.

Four of them still owe federal bailout funds received through the Troubled Assets Relief Program, or TARP, or have converted the TARP preferred shares held by the government to new preferred shares that will potentially cost less, by participating in the Small Business Lending Fund.

This is why an investor has to carefully consider each pick.

Here are our 10 small-cap banks with rising revenue, in ascending order by year-over-year increases in pre-provision net revenue. Data was provided by SNL Financial and supplemented with company filings:
1 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BANR $46.83 0.00%
COBZ $12.70 0.00%
HAFC $24.44 0.00%
HOMB $39.59 0.00%
OZRK $43.65 0.00%


Chart of I:DJI
DOW 16,472.37 +200.36 1.23%
S&P 500 1,951.36 +27.54 1.43%
NASDAQ 4,707.7750 +80.6910 1.74%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs