This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Four Healthy Community Banks Worth Watching

At the end of 2007 the FDIC list had 76 banks on it, and since the end of 2009 the list has had more than 700 banks on it.

Because the FDIC does not disclose the names of the banks on its list, I study data from the FDIC Quarterly Banking Profile and publish the ValuEngine List of Problem Banks on

We limit our list to publicly traded banks. The primary reason for producing this list is to help investors choose healthy community banks for investment and to avoid those that have too much exposure to commercial real estate loans and significant loan pipeline risk.

Four Healthy Community Banks

The table above shows the FDIC assets in billions, the construction and development loans in millions, the percent of C&D loans vs. risk-based capital, the percent of CRE loans vs. risk-based capital, and pipeline, which is the total real estate loans outstanding vs. total real estate loan commitments.

The pop-up table above also shows ValuEngine data. If a bank is undervalued, the percentage to which it is undervalued appears with a minus sign. If it's overvalued, the percentage will appear without a minus sign. There are also stock ratings (3-Engine is a Hold), (4-Engine is a Buy), the return over the past 12 months, the expected percentage gain over the next 12 months and the price-to-earnings ratios.

Lakeland Bancorp ($10.57) reports quarterly results on Thursday, and analysts expect earnings of 19 cents per share.

We rate the stock a Hold (3-Engine) and have a one-year price target of $10.84 (2.8% expected 12-month gain).

This bank has a modest overexposure to CRE loans, but the pipeline is a healthy 43.5% funded. The daily chart shows LBAI overbought with the stock above its 21-day, 50-day and 200-day simple moving averages at $10.17, $9.53 and $8.91, respectively. My monthly value level is $9.67 with a quarterly pivot at $10.83.

Bank of the Ozarks ($30.03) reports quarterly results on Thursday, and analysts expect it to report earnings of 52 cents per share. We rate the stock a Buy (4-Engine) and have a one-year price target at $32.36 (7.8% expected 12-month gain).

2 of 3

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
CBSH $42.16 0.00%
LBAI $11.42 0.00%
OZRK $36.61 0.00%
WBS $36.39 0.00%
AAPL $123.25 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs