NEW YORK (TheStreet) -- Buying a home or a car? You probably love those low interest rates we've had since the Great Recession. Well, banks don't, especially small banks.

Small community banks need interest rates to rise sooner rather than later, given that the majority of their profit is made lending to consumers and commercial borrowers.

But banks may have to wait awhile longer before rates rise back to their pre-financial crisis levels. Last week, the Federal Reserve hinted that it would raise interest rates at a slower-than-expected pace.

And that may mean impatience on the part of bank investors.

"The [small-to-mid-cap] bank group isn't without its challenges, most notably the impact on bank profitability from the persistently low interest rate environment both domestically and abroad," said Jefferson Harralson, Keefe, Bruyette & Woods' head of Small-Cap and Mid-Cap Bank Research, in a 2015 bank outlook. "The resulting impact on bank net interest margins (NIM) - the most meaningful input to forward [earnings] estimates - remains significant. In addition, expense headwinds from increased financial regulation remain a consideration for underlying bank profitability entering 2015, though regulatory headline risk appears to be showing some signs of abating."

Still there are plenty of community bank stocks worth considering.

TheStreet Ratings, TheStreet's proprietary ratings tool, projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Based on 32 major data points, TheStreet Ratings uses a quantitative approach to rating over 4,300 stocks to predict return potential for the next year. The model is both objective, using elements such as volatility of past operating revenues, financial strength, and company cash flows, and subjective, including expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings.

Buying an S&P 500 stock that TheStreet Ratings rated a "buy" yielded a 16.56% return in 2014 beating the S&P 500 Total Return Index by 304 basis points. Buying a Russell 2000 stock that TheStreet Ratings rated a "buy" yielded a 9.5% return in 2014, beating the Russell 2000 index, including dividends reinvested, by 460 basis points last year.

The stocks on this list are all small-cap regional banks with Buy, A- or better ratings. Check out which banks made the list. And when you're done see which bank stocks could make or break your portfolio in the era of low oil prices. Year-to-date returns are based on March 23, 2015 closing prices.


AUBN Chart AUBN data by YCharts

1. Auburn National Bancorp (AUBN)
Rating: Buy, A-
Market Cap: $90.2 million
Year-to-date return: 2.8%

Auburn National Bancorporation, Inc. operates as the holding company for AuburnBank that offers various banking products and services in East Alabama. The company's deposit products include checking, savings, and transaction deposit accounts, as well as certificates of deposit.

"We rate AUBURN NATIONAL BANCORP (AUBN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • AUBURN NATIONAL BANCORP has improved earnings per share by 10.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, AUBURN NATIONAL BANCORP increased its bottom line by earning $2.04 versus $1.94 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the Commercial Banks industry average, but is less than that of the S&P 500. The net income increased by 9.6% when compared to the same quarter one year prior, going from $1.73 million to $1.90 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, AUBURN NATIONAL BANCORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • In its most recent trading session, AUBN has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.

 

 

BOTJ Chart BOTJ data by YCharts

2. Bank of the James Financial Group (BOTJ)
Rating: Buy, A-
Market Cap: $36.6 million
Year-to-date return: 5.5%

Bank of the James Financial Group, Inc. operates as the bank holding company for Bank of the James that provides general retail and commercial banking services in Virginia.

"We rate BANK OF THE JAMES FINANCIAL (BOTJ) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • BANK OF THE JAMES FINANCIAL has improved earnings per share by 40.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, BANK OF THE JAMES FINANCIAL increased its bottom line by earning $1.01 versus $0.92 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 43.6% when compared to the same quarter one year prior, rising from $0.66 million to $0.95 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, BANK OF THE JAMES FINANCIAL has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

CBAN Chart CBAN data by YCharts

3. Colony Bankcorp Inc. (CBAN)
Rating: Buy, A-
Market Cap: $68.5 million
Year-to-date return: 2.8%

Colony Bankcorp, Inc. operates as the bank holding company for Colony Bank that provides retail and commercial banking services to consumers and small- to medium-size businesses primarily in central, south, and coastal Georgia.

"We rate COLONY BANKCORP INC (CBAN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, compelling growth in net income and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • CBAN's revenue growth has slightly outpaced the industry average of 2.3%. Since the same quarter one year prior, revenues slightly increased by 0.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 32.89% over the past year, a rise that has exceeded that of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • COLONY BANKCORP INC has improved earnings per share by 6.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, COLONY BANKCORP INC increased its bottom line by earning $0.58 versus $0.37 in the prior year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Commercial Banks industry average. The net income increased by 21.6% when compared to the same quarter one year prior, going from $1.63 million to $1.98 million.
  • The gross profit margin for COLONY BANKCORP INC is currently very high, coming in at 87.80%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 14.58% is above that of the industry average.

 

 

DNBF Chart DNBF data by YCharts

4. DNB Financial Corp. (DNBF)
Rating: Buy, A-
Market Cap: $72.2 million
Year-to-date return: 25%

DNB Financial Corporation operates as the bank holding company for DNB First, National Association that provides a range of commercial banking products and services to individuals and small to medium sized businesses in southeastern Pennsylvania.

"We rate DNB FINANCIAL CORP (DNBF) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 2.3%. Since the same quarter one year prior, revenues slightly increased by 8.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The gross profit margin for DNB FINANCIAL CORP is currently very high, coming in at 89.87%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.32% is above that of the industry average.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 31.97% over the past year, a rise that has exceeded that of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • DNB FINANCIAL CORP has improved earnings per share by 21.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, DNB FINANCIAL CORP increased its bottom line by earning $1.66 versus $1.36 in the prior year. This year, the market expects an improvement in earnings ($1.72 versus $1.66).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Commercial Banks industry average. The net income increased by 25.0% when compared to the same quarter one year prior, going from $1.16 million to $1.45 million.

 

FBSS Chart FBSS data by YCharts

5. Fauquier Bankshares Inc. (FBSS)
Rating: Buy, A-
Market Cap: $62.6 million
Year-to-date return: -11.4%

Fauquier Bankshares, Inc. operates as a bank holding company for The Fauquier Bank that provides various consumer and commercial banking services to individuals, businesses, and industries in Virginia.

"We rate FAUQUIER BANKSHARES INC (FBSS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its expanding profit margins, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The gross profit margin for FAUQUIER BANKSHARES INC is currently very high, coming in at 91.12%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 16.47% is above that of the industry average.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • FAUQUIER BANKSHARES INC's earnings per share declined by 18.9% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, FAUQUIER BANKSHARES INC increased its bottom line by earning $1.28 versus $1.16 in the prior year.
  • FBSS, with its decline in revenue, slightly underperformed the industry average of 2.3%. Since the same quarter one year prior, revenues slightly dropped by 7.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Commercial Banks industry and the overall market, FAUQUIER BANKSHARES INC's return on equity is below that of both the industry average and the S&P 500.

 

 

FCCY Chart FCCY data by YCharts

6. 1st Constitution Bancorp (FCCY)
Rating: Buy, A-
Market Cap: $88 million
Year-to-date return: 5.2%

1st Constitution Bancorp operates as the holding company for 1st Constitution Bank that provides commercial and retail banking services in the Central and Northeastern New Jersey area.

"We rate 1ST CONSTITUTION BANCORP (FCCY) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in net income, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 46.6% when compared to the same quarter one year prior, rising from $1.38 million to $2.02 million.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • 1ST CONSTITUTION BANCORP has improved earnings per share by 27.3% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, 1ST CONSTITUTION BANCORP reported lower earnings of $0.58 versus $0.90 in the prior year.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Commercial Banks industry and the overall market, 1ST CONSTITUTION BANCORP's return on equity is below that of both the industry average and the S&P 500.

 

SFBC Chart SFBC data by YCharts

7. Sound Financial Bancorp Inc. (SFBC)
Rating: Buy, A-
Market Cap: $48.6 million
Year-to-date return: 2.1%

Sound Financial Bancorp, Inc. operates as a bank holding company for Sound Community Bank that provides traditional banking and other financial services in the Puget Sound region in Western Washington.

"We rate SOUND FINANCIAL BANCORP INC (SFBC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • SFBC's revenue growth has slightly outpaced the industry average of 2.3%. Since the same quarter one year prior, revenues slightly increased by 4.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for SOUND FINANCIAL BANCORP INC is currently very high, coming in at 87.73%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.23% is above that of the industry average.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • SOUND FINANCIAL BANCORP INC's earnings per share declined by 20.5% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, SOUND FINANCIAL BANCORP INC increased its bottom line by earning $1.63 versus $1.50 in the prior year.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Commercial Banks industry. The net income has decreased by 20.3% when compared to the same quarter one year ago, dropping from $1.01 million to $0.80 million.

 

SSBI Chart SSBI data by YCharts

8. Summit State Bank (SSBI)
Rating: Buy, A
Market Cap: $62.3 million
Year-to-date return: -5.3%

Summit State Bank, a community bank, provides various financial products and services to small-to medium-sized businesses, professionals and professional associations, entrepreneurs, high net worth families, foundations, estates, and individual consumers.

"We rate SUMMIT STATE BANK (SSBI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • SUMMIT STATE BANK reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, SUMMIT STATE BANK increased its bottom line by earning $1.11 versus $0.86 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 55.0% when compared to the same quarter one year prior, rising from $1.17 million to $1.81 million.
  • The gross profit margin for SUMMIT STATE BANK is currently very high, coming in at 115.25%. It has increased significantly from the same period last year. Along with this, the net profit margin of 36.17% significantly outperformed against the industry average.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 2.3%. Since the same quarter one year prior, revenues slightly dropped by 0.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

 

9. Athens Bancshares Corp. (AFCB)
Rating: Buy, A
Market Cap: $44.2 million
Year-to-date return: -3.2%

Athens Bancshares Corporation operates as the holding company for Athens Federal Community Bank that provides financial services to consumers and businesses primarily in McMinn, Monroe, and Bradley counties, Tennessee.

"We rate ATHENS BANCSHARES CORP (AFCB) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, solid stock price performance and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • ATHENS BANCSHARES CORP has improved earnings per share by 9.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, ATHENS BANCSHARES CORP increased its bottom line by earning $1.53 versus $1.13 in the prior year.
  • The net income growth from the same quarter one year ago has exceeded that of the Commercial Banks industry average, but is less than that of the S&P 500. The net income increased by 1.5% when compared to the same quarter one year prior, going from $0.61 million to $0.62 million.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Commercial Banks industry and the overall market, ATHENS BANCSHARES CORP's return on equity is below that of both the industry average and the S&P 500.

 

 

 

EMCF Chart EMCF data by YCharts

10. Emclaire Financial Corp. (EMCF)
Rating: Buy, A
Market Cap: $45 million
Year-to-date return: -0.4%

Emclaire Financial Corp. operates as the holding company for The Farmers National Bank of Emlenton that provides retail and commercial financial products and services to individuals and businesses in western Pennsylvania.

"We rate EMCLAIRE FINANCIAL CORP (EMCF) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, increase in net income and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • EMCLAIRE FINANCIAL CORP has improved earnings per share by 42.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, EMCLAIRE FINANCIAL CORP increased its bottom line by earning $2.20 versus $1.91 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 37.2% when compared to the same quarter one year prior, rising from $0.93 million to $1.28 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Commercial Banks industry and the overall market, EMCLAIRE FINANCIAL CORP's return on equity is below that of both the industry average and the S&P 500.
  • In its most recent trading session, EMCF has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.

 

MBCN Chart MBCN data by YCharts

11. Middlefield Banc Corp. (MBCN)
Rating: Buy, A
Market Cap: $66.7 million
Year-to-date return: -4.8%

Middlefield Banc Corp. operates as the bank holding company for The Middlefield Banking Company that provides various commercial banking services to small and medium-sized businesses, professionals and small business owners, and retail customers in northeastern and central Ohio.

"We rate MIDDLEFIELD BANC CORP (MBCN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • MBCN's revenue growth has slightly outpaced the industry average of 2.3%. Since the same quarter one year prior, revenues slightly increased by 5.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • MIDDLEFIELD BANC CORP's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, MIDDLEFIELD BANC CORP increased its bottom line by earning $3.50 versus $3.47 in the prior year.
  • The gross profit margin for MIDDLEFIELD BANC CORP is currently very high, coming in at 87.56%. Regardless of MBCN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MBCN's net profit margin of 23.36% significantly outperformed against the industry.
  • The net income growth from the same quarter one year ago has exceeded that of the Commercial Banks industry average, but is less than that of the S&P 500. The net income increased by 3.7% when compared to the same quarter one year prior, going from $1.82 million to $1.89 million.

 

 

OVLY Chart OVLY data by YCharts

12. Oak Valley Bancorp (OVLY)
Rating: Buy, A
Market Cap: $78.4 million
Year-to-date return: -5.5%

Oak Valley Bancorp operates as the holding company for Oak Valley Community Bank that provides banking services to individuals and business enterprises in Oakdale, California and the surrounding areas. The company conducts its operations through Retail Banking and Commercial Banking segments.

"We rate OAK VALLEY BANCORP (OVLY) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, OAK VALLEY BANCORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • OAK VALLEY BANCORP's earnings per share declined by 9.1% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, OAK VALLEY BANCORP increased its bottom line by earning $0.89 versus $0.75 in the prior year.
  • In its most recent trading session, OVLY has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The change in net income from the same quarter one year ago has exceeded that of the Commercial Banks industry average, but is less than that of the S&P 500. The net income has decreased by 3.8% when compared to the same quarter one year ago, dropping from $1.71 million to $1.64 million.

 

TRCB Chart TRCB data by YCharts

13. Two River Bancorp (TRCB)
Rating: Buy, A
Market Cap: $69 million
Year-to-date return: 2.7% 8.66

Two River Bancorp operates as the bank holding company for Two River Community Bank that provides commercial and retail banking services to individuals, professionals, and small to medium-sized businesses.

"We rate TWO RIVER BANCORP (TRCB) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, attractive valuation levels, expanding profit margins and increase in stock price during the past year. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • TRCB's revenue growth has slightly outpaced the industry average of 2.3%. Since the same quarter one year prior, revenues slightly increased by 1.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • TWO RIVER BANCORP has improved earnings per share by 5.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, TWO RIVER BANCORP increased its bottom line by earning $0.72 versus $0.60 in the prior year.
  • The gross profit margin for TWO RIVER BANCORP is currently very high, coming in at 88.57%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.29% is above that of the industry average.
  • The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.