NEW YORK (TheStreet) -- Community banks may not have household names, but the nine profiled today have positive weekly charts and thus provide investment opportunities.
When focusing on community banks, my first look is at the ABA Nasdaq Community Bank Index (ABAQ). (This sector is availabe in ETF form as the First Trust NASDAQ ABA Community Bank Index Fund (QABA).) Before the banking crisis, this index consisted of 500 bank stocks with a waiting list of banks wanting to join the list. After many bank failures, mergers and banks simply closing, the community bank index today has just 374 publicly traded members.
I weeded through the list to find those that had an average trading volume of at least 300,000 shares and represented different areas of the country. Four are headquartered in the Northeast, one is in the Southeast (Puerto Rico), one is in the Midwest, two are out West -- and one is a savings and loan headquartered in Topeka, Kansas.
Following these profiles are three "crunching the numbers" tables to help you understand the moving averages and stochastics, the value levels and risky levels, and the data from the Federal Deposit Insurance Corporation.
All of the nine community banks are above their five key moving averages except one, which is below its 200-day simple moving average. All have positive weekly charts, above their five-week modified moving averages with rising 12x3x3 weekly slow stochastics. These profiles will focus on the FDIC data and the value and risky levels.
Associated Banc-Corp (ASBC) ($18.20) has $24.6 billion in assets. Exposures to construction and development and commercial real estate loans are well-managed. The stock traded as high as $18.70 on March 21, and weakness has held its 200-day simple moving average at $16.87 since then. Semiannual and quarterly value levels are $17.69 and $16.98, respectively, with a weekly pivot at $18.06 and monthly risky level at $18.76.
Boston Private Financial Holdings (BPFH) ($13.47) has $6.5 billion in assets. It has a slight overexposure to CRE loans with a ratio to risk-based capital at 310.2%. The stock traded as high as $14.64 on Jan. 17, then as low as $11.69 on May 15, holding its 200-day SMA at $12.12. Weekly and semiannual value levels are $12.73 and $12.30, respectively, with a monthly risky level at $13.92.
Popular, Inc. (BPOP - Get Report) ($32.22) has $36.2 billion in assets. Exposures to C&D and CRE loans are well-managed. The stock held its 200-day SMA at $28.58 since mid-March, and traded as high as $32.33 on Tuesday. Weekly and semiannual value levels are $30.92 and $27.78, with a monthly pivot at $31.49 and quarterly risky level at $49.01.
Capitol Federal Financial (CFFN) ($11.99) has $9.1 billion in assets. Exposures to C&D and CRE loans are well-managed. The stock has been trading back and forth around its 200-day SMA at $11.88 since April 25. A monthly value level is $11.96, with a quarterly pivot at $12.43 and annual risky levels at $16.03 and $17.60.
National Penn Bancshares (NPBC) ($10.80) has $8.5 billion in assets. Exposures to C&D and CRE loans are well-managed. The stock moved above its 200-day SMA at $10.50 on June 6. A weekly value level is $10.04, with a monthly pivot at $11.05. Quarterly and semiannual risky levels are at $11.40 and $12.45, respectively.
PacWest Bancorp (PACW) ($44.14) has $6.5 billion in assets. It is overexposed to CRE loans, with a ratio of 361.1% on loans vs. risk-based capital. Annual and quarterly value levels are $42.73 and $40.06, respectively, with a monthly risky level at $47.52.
Signature Bank (SBNY - Get Report) ($122.20) has $23.1 billion in assets. It has an overexposure to CRE loans, with a ratio to risk-based capital of 530%. Quarterly and weekly value levels are $117.25 and $116.33, respectively, with a monthly risky level at $140.60.
Don't miss our trader charts, including an FDIC data crunch, on pages 2 and 3.