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) -- For Black Friday shoppers who would prefer to invest for the future rather than participate in the annual frenzy whipped-up by the retailers trying to take your money,


is here to point out some real bargains.

Of course, there are many ways to shop for bank stocks. For a conservative "gift that keeps on giving," consider a holding company with an attractive dividend yield that is well-supported by earnings, such as

New York Community Bancorp

( NYB) which was recently featured among


10 Banks with Real Earnings Improvement

and a side piece on

how to play it

. As of Tuesday's close at $16.92, the shares were yielding 5.91% on a quarterly payout of 25 cents.

Another old favorite with solid asset quality, strong capital, high efficiency and a sweet dividend is

Hudson City Bancorp


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, with a yield of 5.21% based on Tuesday's closing price of $11.51 and a quarterly payout of 15 cents. The company was recently featured in

5 Bank Stocks with Big Dividends

, along with

Valley National Bancorp


, with shares yielding a lovely 5.63% at Tuesday's closing price of $12.79 on a quarterly dividend payout of 18 cents.

For investors more concerned with long term growth who want to get ahead of anticipated strengthening of economic growth and the recovery of the entire banking sector, there are several large bank holding companies trading below their tangible book value, according to data provided by SNL Financial.

Two of the largest U.S. bank holding companies that no longer owe the government for bailout assistance received through the Troubled Assets Relief Program, or TARP and are also trading below tangible book value are

Bank of America






Bank of America had a noisy third quarter, as the company posted a net loss of $7.3 billion, or 77 cents a share, resulting from a non-cash goodwill impairment charge of $10.4 billion at its

FIA Card Services

subsidiary. This placed a drag on third-quarter earnings for the

entire banking sector

according to the

Federal Deposit Insurance Corp.

, but excluding the goodwill charge - which didn't eat into investor capital - the company would have earned $3.1 billion, or 27 cents a share, declining slightly from the previous quarter. Bank of America's shares were trading for 0.9 times tangible book value as of Tuesday's market close, which is a very low level for a company with such a national presence, including Merrill Lynch and Countrywide's mortgage business.

Surely the nation's largest bank, which will have tremendous earnings power when the economic recovery eventually picks up steam, is worth more than its liquidation value. Analysts concur, with 17 out of 25 analysts covering the company rating its shares a buy, while the other analysts all have hold ratings. Based on the median price target of $18 among analysts polled by Thomson Reuters, the shares have 62% upside potential from Tuesday's closing price of $11.09. However, most of the analyst targets are for 12 months, which really isn't that long-term an outlook. An investor confident in the eventual economic recovery who is willing to go in for several years, might be in for a fat triple-digit return.

Citigroup was featured Tuesday among TheStreet's

10 Inflation-Proof Financial Stocks

, and the company's $548 billion in foreign deposits certainly provide a bit of a hedge, but with the FDIC changing its formula for calculating deposit insurance to include foreign deposits, Citi will lose a long-time funding advantage. Like Bank of America, the company also faces additional regulatory hurdles, including a new capital plan with stress tests

of stress tests

required by the Federal Reserve, however, the company appears set to pass those tests with flying colors, and also appears on course to meet the coming

Basel III

capital requirements without raising additional common equity from investors.

Please see


10 Banks With Earnings Upside Potential

for details on Citigroup's third-quarter earnings, expected boost from upcoming releases of loan loss reserves, and one analyst's discussion of a possible 6% dividend payout some time in 2012.

Analyst sentiment for Citigroup isn't as strong as it is for Bank of America, with 10 out of 20 analysts rating the shares a buy, eight recommending investors hold and 2 recommending investors sell the shares. Based on the mean target price of $5.35, the shares had 30% upside potential at Tuesday's closing price of $4.10.


Written by Philip van Doorn in Jupiter, Fla.

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Philip van Doorn


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Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.