This Day On The Street
Continue to site
ADVERTISEMENT
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

Assessing 68 Community Banks that Report Quarterly Results

NEW YORK ( TheStreet) -- Several strategists and bank stock analysts are advising investors to consider buying the smaller community banks instead of buying the bigger regional names.

My role is to separate those that look healthy versus those who are risky.

This week investors have 68 community banks to choose from; 14 Savings & Loans, 17 from the northeast, 15 from the southeast, 10 from the midwest, 11 from the west, and one small major regional.

As I said last week in Assessing 29 Community Banks That Report Quarterly Results , this bet assumes that the housing market is in recovery, and that community banks will increase lending to home builders and developers and will ease tight lending standards for homeowners and home buyers who seek to refinance or buy a home.

This list of community banks include only five that are overexposed to construction and development loans, but there are 38 that are overexposed to the broader category of commercial real estate loans. Only 11 have pipeline risk of more than 80% of loans outstanding versus loan commitments.

My benchmark for community banks is the America's Community Bankers Index (ABAQ), which tracks more than 400 small publicly traded FDIC-insured financial institutions.

Chart Courtesy of Thomson / Reuters

ABAQ (164.50) declined by 2.4% last week, but remains up 35.5% since October 2011, and is up 11.2% year to date. The daily chart above is negative with declining momentum (12x3x3 daily slow Stochastic), with a close on Friday below its 21-day simple moving average at 163.37.

The 50-day and 200-day simple moving averages are key supports at 161.30 and 155.29. My quarterly value level is 161.51 with weekly and annual pivots at 164.66 and 166.87 and monthly risky level at 172.92.

Reading the Table

The table above shows the FDIC assets in billions, the construction and development loans in millions, the percentage of C&D loans versus risk-based capital, the percentage of CRE loans versus risk-based capital, and pipeline, which is the total real estate loans outstanding versus total real estate loan commitments.
1 of 2

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
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
SYM TRADE IT LAST %CHG
AAPL $113.29 0.00%
FB $91.01 0.00%
GOOG $630.38 0.00%
TSLA $248.48 0.00%
YHOO $33.14 0.00%

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs