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Regional bank stocks list


regional bank stocks list

Tap into cyclical economic growth via financial stocks. the roughly $5 billion SPDR S&P Regional Banking ETF is a good alternative. 7 top regional bank stocks to buy. Send to (Separate multiple email addresses with commas). Please enter a valid email address. Your email address. Putting our customers first. That's been our philosophy for over 150 years. We're more than a full-service bank—we're your friendly neighborhood money.

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Top Financial Stocks for December 2021

The financial sector is comprised of companies that offer services including loans, savings, insurance, payment services, and money management for individuals and firms. Financial sector stocks include a wide range of companies involved in retail and commercial banking, accounting, insurance, asset management, credit cards, and brokerage. Well-known companies in the sector include Wells Fargo Co. (WFC), Goldman Sachs Group Inc. (GS), and Morgan Stanley (MS).

Financial stocks, represented by the Financial Select Sector SPDR ETF (XLF), have outperformed the broader market, with a total return of 46.9% compared to the iShares Russell 1000 ETF's (IWB) total return of 33.5% over the past 12 months. These performance numbers and all statistics in the tables below are as of Nov. 18, 2021.

Here are the top three financial stocks with the best value, the fastest growth, and the most momentum.

Best Value Financial Stocks

These are the financial stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.

Best Value Financial Stocks
Price ($)Market Cap ($B)12-Month Trailing P/E Ratio
UWM Holdings Corp. (UWMC)5.950.60.4
Santander Consumer USA Holdings Inc. (SC)41.9912.94.2
Voya Financial Inc. (VOYA)69.367.74.5

Source: YCharts

  • UWM Holdings Corp. UWM Holdings is a holding company that, through its subsidiaries, engages in the origination, sale, and servicing of residential mortgage loans. The company reported a significant year-over-year (YOY) decline in net income for Q3 2021, due in part to a major drop in fair value of mortgage servicing rights (MSRs). The quarter ended Sept. 30, 2021. At the same time, originations rose 16% to a company record.
  • Santander Consumer USA Holdings Inc.: Santander Consumer USA Holdings is a holding company that, through its subsidiaries, offers financing for new and used cars, auto refinancing, and other services. On Nov. 19 the company announced a quarterly cash dividend of $0.22 per common share to shareholders of record as of Nov. 29. The dividend is payable on Dec. 9, 2021.
  • Voya Financial Inc.: Voya Financial offers investment, insurance, and retirement planning services. The company provides asset accumulation, protection, and distribution products and services to individuals and institutions.

Fastest-Growing Financial Stocks

These are the top financial stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly YOY percentage revenue growth and their most recent quarterly YOY earnings-per-share (EPS) growth. Both sales and earnings are critical factors in the success of a company. Therefore, ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one or the other figure unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of over 2,500% were excluded as outliers.

Fastest-Growing Financial Stocks
Price ($)Market Cap ($B)EPS Growth (%)Revenue Growth (%)
Upstart Holdings Inc. (UPST)232.0219.0200.0262.5
Franklin Resources Inc. (BEN)35.0017.6766.727.9
Athene Holding Ltd. (ATH)85.8716.511.1173.5

Source: YCharts

  • Upstart Holdings Inc.: Upstart Holdings is a holding company whose subsidiaries offer a cloud-based artificial intelligence lending platform to make credit more available. The platform also helps bank partners to reduce the risk of lending. Both net income attributable to common shareholders and total revenue more than tripled YOY for Q3 2021, ended Sept. 30.
  • Franklin Resources Inc.: Franklin Resources offers investment advisory services to mutual fund, retirement, and institutional investors. The company manages a broad range of asset classes, including global equity, municipal fixed income, hedge funds, and alternative investments.
  • Athene Holding Ltd.: Athene Holding is an insurance holding company that issues, reinsures, and acquires retirement savings products through subsidiaries. The company serves customers around the world. The company reported Q3 2021 financial results for the quarter ended Sept. 30 on Nov. 3. Net income rose 12.4%. on a 167% increase in total revenues as gross organic inflows rose to a record $11.9 billion. The company said the quarterly performance reflected its diversified funding channels, and in particular the institutional side of the business in funding agreements and pension group annuities.

Financial Stocks With the Most Momentum

These are the financial stocks that had the highest total return over the past 12 months.

Financial Stocks With the Most Momentum
Price ($)Market Cap ($B)12-Month Trailing Total Return (%)
Signature Bank (SBNY)323.4219.6197.2
Blackstone Inc. (BX)145.08103.7160.9
Western Alliance Bancorp (WAL)117.0712.2117.7
iShares Russell 1000 ETF (IWB)N/AN/A33.5
Financial Select Sector SPDR ETF (XLF)N/AN/A46.9

Source: YCharts

  • Signature Bank: Signature Bank is a full-service commercial bank. The company provides investment, brokerage, asset management, and insurance products as well as various commercial lending services and other specialty-finance lending solutions.
  • Blackstone Inc.: Blackstone is a global investment firm offering a range of investment vehicles that are focused on private equity, real estate, public debt and equity, growth equity, non-investment grade credit, real assets, and other types of assets. It serves both institutional investors and individuals. On Nov. 18, womenswear brand SPANX Inc. announced that funds managed by Blackstone had completed a majority investment in SPANX at a valuation of $1.2 billion. Additional new investors in the deal included Oprah Winfrey and Reese Witherspoon.
  • Western Alliance Bancorp: Western Alliance Bancorp is a bank holding company. Through its subsidiaries, the company provides a variety of deposit, lending, treasury management, international banking, and other banking services.

The comments, opinions, and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or to adopt any investment strategy. Though we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described in our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions, and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment, or strategy.

Источник: https://www.investopedia.com/top-financial-stocks-4582168

The Potential Recovery of U.S. Bank Stocks Enters a Second Act

Through last year’s uncertainty, the most powerful insight we identified was the impact of the CARES Act mortgage forbearances.

This program, along with rent relief and bank deferrals, provided quick and long-lasting help for the households that needed it most. CARES Act forbearances continue to be more powerful than unemployment benefits or stimulus checks. This was a foundational insight that led to us bet early on banks last year, especially when the market was debating the odds of additional stimulus.

To highlight the importance of forbearance, in the global financial crisis (GFC) we had seen mortgage delinquencies more than doubled to 10%.

Last year’s shutdowns drove mortgage delinquencies near to GFC levels, with over 8% of loans delinquent. But nearly all of these were on forbearance. This means over 3 million households received needed help. This compares to about 1.3 million through the Home Affordable Modification Program offered in the global financial crisis. This highlights just how much additional help was provided this past year.

A downturn as deep and as swift as the one we saw last year would typically hit banks hard. The speed and broad eligibility of mortgage forbearance was a key difference on why that didn’t happen.

As we think about reopening, the reason mortgage forbearance is still so important is that, unlike past recoveries, consumers have preserved credit records and built savings, and they are not burdened by delinquencies. This means there’s broader firepower for consumers to drive the recovery forward.

We see the recovery of banks playing out in two acts.

We think the first act is over. That’s when we saw credit fears and concerns that the U.S. financial system may ultimately look like Japan or Europe with their negative interest rates. Banks have recovered from extreme valuations with the Nasdaq Bank Index (BKX) recovering 109% this past year compared to a 46% gain for the S&P 500.

The next act that is about to start is about recovery of loan growth, liquidity deployment, and potentially higher interest rates versus normal valuations and still subdued expectations.

When we look at estimates, we think the post-global financial crisis experience is weighing heavily on the minds of other analysts. Then, banks were severely damaged and that recovery one of the slowest on record.

This recovery is different, but it’s not without precedent. This has been more like a natural disaster playbook than a recession. Here’s what I mean:

I cover Banco Popular in Puerto Rico. Following the hurricanes in 2017, I visited the island. I visited major retail centers, many of the pharma and manufacturing facilities, and I even chartered a helicopter to inspect the electric transmission line repairs throughout the mountains. I was shocked to see how much activity was preserved in Puerto Rico—it was like nothing being shown on the news. What I gathered from that trip was the mortgage forbearance offered by the banks in large scale was able to save the consumer and prevent widespread credit deterioration. Consumer spending defied many expectations. It was through that experience that I see similarities with the CARES Act mortgage forbearance program. In both cases, I think mortgage forbearance was a key bridge to rebuilding and now reopening.

Other analysts seem to be focused on the experience of the global financial crisis, with consensus only expecting about 1.5% loan growth to 2022. Loan growth is still muted right now, but our leading indicators are more positive, while the headwinds to loan growth at the same time are at peak historical levels. Commercial and industrial line utilization is under pressure as supply chains are rebuilding, and credit card payment rates are the highest on record with the benefit of stimulus. Normalizing these headwinds could lead to over 10% loan growth for both categories.

As we think about earnings options across loan growth, excess liquidity deployment, and potentially higher interest rates, we think normalized earnings per share could be 25% higher even with potentially higher taxes. This would put bank valuations three turns lower than historical levels. This is why we want to be patient through this second act.

However, we are closely watching inflation. Supply chain and labor shortages are already driving inflationary signals with no shortage of recent headlines. One example: Lumber is adding $36,000 to the average new home price in the U.S.

In terms of policy and environment backdrop, the ingredients relative to past inflationary cycles are already here. Prior patterns have included a shift in policy to favor full employment above inflation, sustained monetary policy accommodation of fiscal deficits, questioned central bank independence, and unanchored expectations. Wartime spending has also proven inflationary—to which COVID and the war on the virus closely resembles.

We do expect some transitionary pressures to abate, but for these reasons we think there are greater odds of higher inflation over a multiyear period, especially since we think housing is likely to become more inflationary to CPI as home price appreciation sees less offset from lower interest rates.

We believe the Fed has the tools to deal with moderate inflation, which is why we expect earlier tapering and rates lift off. This would likely be a positive for bank loan growth and net interest income if done methodically and before excesses build. Relative to in-line valuations for the group, higher rates is an attractive free option rather than an explicit macro bet.

These issues—the CARES Act, the road to recovery, and inflation, among others—are creating both opportunities and risks. In some ways, we’ve used a cyclical opportunity to make secular bets.

There’s no shortage of disruption from fintech and maybe even things like a central bank digital currency. As examples, we’re focused on banks like PNC that have made the move to real-time versus overnight batch processing. PNC’s scale and investments are allowing it to expand nationally with products that rival the fintech’s best. These investments are also allowing it to consolidate the industry with accretive M&A.

Another example is a predominant credit card company, Capital One, which was under extreme pressure last year. Yet it’s one of the only banks in the world to reengineer its technology stack from the ground up as part of its cloud migration.

We also see idiosyncratic opportunities like Wells Fargo, which is making progress on its regulatory work that we believe represents one of the most promising turnarounds within financials.

Despite recent strong performance in bank stocks, we’re still excited about the recovery ahead, especially if bank technology and infrastructure investments accelerate.

Источник: https://www.troweprice.com/financial-intermediary/us/en/insights/articles/2021/q3/sector-insights-recovery-bank-stocks-enters-second-act.global-equity.html
1Ally Financial Inc.ALLYUSA2Associated Banc-CorpASBUSA3Axos Financial Inc.
AXUSA4Banc of California Inc.BANCUSA5BancorpSouth BankBXSUSA6Bank of America CorporationBACUSA7Bank of Hawaii CorporationBOHUSA8BankUnited Inc.
BKUUSA9Bar Harbor Bankshares Inc.BHBUSA10Berkshire Hills Bancorp Inc.BHLBUSA11Blue Ridge Bankshares Inc.BRBSUSA12Byline Bancorp Inc.BYUSA13Cadence BancorporationCADEUSA14Capital One Financial CorporationCOFUSA15Central Pacific Financial CorpCPFUSA16CIT Group IncCITUSA17Citigroup Inc.CUSA18Citizens Financial Group Inc.CFGUSA19Comerica IncorporatedCMAUSA20Community Bank System Inc.CBUUSA21Cullen/Frost Bankers Inc.CFRUSA22Customers Bancorp IncCUBIUSA23Evans Bancorp Inc.EVBNUSA24F.N.B. CorporationFNBUSA25FB Financial CorporationFBKUSA26First Commonwealth Financial CorporationFCFUSA27First Horizon CorporationFHNUSA28First Republic BankFRCUSA29Flagstar Bancorp Inc.
FBCUSA30Great Western Bancorp Inc.GWBUSA31Hilltop Holdings Inc.HTHUSA32JP Morgan Chase & Co.JPMUSA33KeyCorpKEYUSA34M&T Bank CorporationMTBUSA35Megalith Financial Acquisition Corp.MFACUSA36Metropolitan Bank Holding Corp.MCBUSA37National Bank Holdings CorporationNBHCUSA38New York Community Bancorp Inc.NYCBUSA39Park National CorporationPRKUSA40PNC Financial Services Group Inc. (The)PNCUSA41Prosperity Bancshares Inc.PBUSA42Provident Financial Services Inc
PFSUSA43Regions Financial CorporationRFUSA44Silvergate Capital CorporationSIUSA45State Street CorporationSTTUSA46Sterling BancorpSTLUSA47Synovus Financial Corp.SNVUSA48The Bank of New York Mellon CorporationBKUSA49Tompkins Financial CorporationTMPUSA50Truist Financial CorporationTFCUSA51U.S. BancorpUSBUSA52Webster Financial CorporationWBSUSA53Wells Fargo & CompanyWFCUSA54Western Alliance BancorporationWALUSA
Источник: https://topforeignstocks.com/stock-lists/the-complete-list-of-bank-stocks-trading-on-the-nyse-2/

The Great Depression

“Regarding the Great Depression, … we did it. We’re very sorry. … We won’t do it again.”
—Ben Bernanke, November 8, 2002, in a speech given at “A Conference to Honor Milton Friedman … On the Occasion of His 90th Birthday.”

In 2002, Ben Bernanke, then a member of the Federal Reserve Board of Governors, acknowledged publicly what economists have long believed. The Federal Reserve’s mistakes contributed to the “worst economic disaster in American history” (Bernanke 2002).

Bernanke, like other economic historians, characterized the Great Depression as a disaster because of its length, depth, and consequences. The Depression lasted a decade, beginning in 1929 and ending during World War II. Industrial production plummeted. Unemployment soared. Families suffered. Marriage rates fell. The contraction began in the United States and spread around the globe. The Depression was the longest and deepest downturn in the history of the United States and the modern industrial economy.

The Great Depression began in August 1929, when the economic expansion of the Roaring Twenties came to an end. A series of financial crises punctuated the contraction. These crises included a stock market crash in 1929, a series of regional banking panics in 1930 and 1931, and a series of national and international financial crises from 1931 through 1933. The downturn hit bottom in March 1933, when the commercial banking system collapsed and President Roosevelt declared a national banking holiday.1  Sweeping reforms of the financial system accompanied the economic recovery, which was interrupted by a double-dip recession in 1937. Return to full output and employment occurred during the Second World War.

To understand Bernanke’s statement, one needs to know what he meant by “we,” “did it,” and “won’t do it again.”

By “we,” Bernanke meant the leaders of the Federal Reserve System. At the start of the Depression, the Federal Reserve’s decision-making structure was decentralized and often ineffective. Each district had a governor who set policies for his district, although some decisions required approval of the Federal Reserve Board in Washington, DC. The Board lacked the authority and tools to act on its own and struggled to coordinate policies across districts. The governors and the Board understood the need for coordination; frequently corresponded concerning important issues; and established procedures and programs, such as the Open Market Investment Committee, to institutionalize cooperation. When these efforts yielded consensus, monetary policy could be swift and effective. But when the governors disagreed, districts could and sometimes did pursue independent and occasionally contradictory courses of action.

The governors disagreed on many issues, because at the time and for decades thereafter, experts disagreed about the best course of action and even about the correct conceptual framework for determining optimal policy. Information about the economy became available with long and variable lags. Experts within the Federal Reserve, in the business community, and among policymakers in Washington, DC, had different perceptions of events and advocated different solutions to problems. Researchers debated these issues for decades. Consensus emerged gradually. The views in this essay reflect conclusions expressed in the writings of three recent chairmen, Paul Volcker, Alan Greenspan, and Ben Bernanke.

By “did it,” Bernanke meant that the leaders of the Federal Reserve implemented policies that they thought were in the public interest. Unintentionally, some of their decisions hurt the economy. Other policies that would have helped were not adopted.

An example of the former is the Fed’s decision to raise interest rates in 1928 and 1929. The Fed did this in an attempt to limit speculation in securities markets. This action slowed economic activity in the United States. Because the international gold standard linked interest rates and monetary policies among participating nations, the Fed’s actions triggered recessions in nations around the globe. The Fed repeated this mistake when responding to the international financial crisis in the fall of 1931. This website explores these issues in greater depth in our entries on the stock market crash of 1929 and the financial crises of 1931 through 1933.

An example of the latter is the Fed’s failure to act as a lender of last resort during the banking panics that began in the fall of 1930 and ended with the banking holiday in the winter of 1933. This website explores this issue in essays on the banking panics of 1930 to 1931, the banking acts of 1932, and the banking holiday of 1933.

Men study the announcement of jobs at an employment agency during the Great Depression.

One reason that Congress created the Federal Reserve, of course, was to act as a lender of last resort. Why did the Federal Reserve fail in this fundamental task? The Federal Reserve’s leaders disagreed about the best response to banking crises. Some governors subscribed to a doctrine similar to Bagehot’s dictum, which says that during financial panics, central banks should loan funds to solvent financial institutions beset by runs. Other governors subscribed to a doctrine known as real bills. This doctrine indicated that central banks should supply more funds to commercial banks during economic expansions, when individuals and firms demanded additional credit to finance production and commerce, and less during economic contractions, when demand for credit contracted. The real bills doctrine did not definitively describe what to do during banking panics, but many of its adherents considered panics to be symptoms of contractions, when central bank lending should contract. A few governors subscribed to an extreme version of the real bills doctrine labeled “liquidationist.” This doctrine indicated that during financial panics, central banks should stand aside so that troubled financial institutions would fail. This pruning of weak institutions would accelerate the evolution of a healthier economic system. Herbert Hoover’s secretary of treasury, Andrew Mellon, who served on the Federal Reserve Board, advocated this approach. These intellectual tensions and the Federal Reserve’s ineffective decision-making structure made it difficult, and at times impossible, for the Fed’s leaders to take effective action.

Among leaders of the Federal Reserve, differences of opinion also existed about whether to help and how much assistance to extend to financial institutions that did not belong to the Federal Reserve. Some leaders thought aid should only be extended to commercial banks that were members of the Federal Reserve System. Others thought member banks should receive assistance substantial enough to enable them to help their customers, including financial institutions that did not belong to the Federal Reserve, but the advisability and legality of this pass-through assistance was the subject of debate. Only a handful of leaders thought the Federal Reserve (or federal government) should directly aid commercial banks (or other financial institutions) that did not belong to the Federal Reserve. One advocate of widespread direct assistance was Eugene Meyer, governor of the Federal Reserve Board, who was instrumental in the creation of the Reconstruction Finance Corporation.

These differences of opinion contributed to the Federal Reserve’s most serious sin of omission: failure to stem the decline in the supply of money. From the fall of 1930 through the winter of 1933, the money supply fell by nearly 30 percent. The declining supply of funds reduced average prices by an equivalent amount. This deflation increased debt burdens; distorted economic decision-making; reduced consumption; increased unemployment; and forced banks, firms, and individuals into bankruptcy. The deflation stemmed from the collapse of the banking system, as explained in the essay on the banking panics of 1930 and 1931.

The Federal Reserve could have prevented deflation by preventing the collapse of the banking system or by counteracting the collapse with an expansion of the monetary base, but it failed to do so for several reasons. The economic collapse was unforeseen and unprecedented. Decision makers lacked effective mechanisms for determining what went wrong and lacked the authority to take actions sufficient to cure the economy. Some decision makers misinterpreted signals about the state of the economy, such as the nominal interest rate, because of their adherence to the real bills philosophy. Others deemed defending the gold standard by raising interests and reducing the supply of money and credit to be better for the economy than aiding ailing banks with the opposite actions.

On several occasions, the Federal Reserve did implement policies that modern monetary scholars believe could have stemmed the contraction. In the spring of 1931, the Federal Reserve began to expand the monetary base, but the expansion was insufficient to offset the deflationary effects of the banking crises. In the spring of 1932, after Congress provided the Federal Reserve with the necessary authority, the Federal Reserve expanded the monetary base aggressively. The policy appeared effective initially, but after a few months the Federal Reserve changed course. A series of political and international shocks hit the economy, and the contraction resumed. Overall, the Fed’s efforts to end the deflation and resuscitate the financial system, while well intentioned and based on the best available information, appear to have been too little and too late.

The flaws in the Federal Reserve’s structure became apparent during the initial years of the Great Depression. Congress responded by reforming the Federal Reserve and the entire financial system. Under the Hoover administration, congressional reforms culminated in the Reconstruction Finance Corporation Act and the Banking Act of 1932. Under the Roosevelt administration, reforms culminated in the Emergency Banking Act of 1933, the Banking Act of 1933 (commonly called Glass-Steagall), the Gold Reserve Act of 1934, and the Banking Act of 1935. This legislation shifted some of the Federal Reserve’s responsibilities to the Treasury Department and to new federal agencies such as the Reconstruction Finance Corporation and Federal Deposit Insurance Corporation. These agencies dominated monetary and banking policy until the 1950s.

The reforms of the 1930s, ’40s, and ’50s turned the Federal Reserve into a modern central bank. The creation of the modern intellectual framework underlying economic policy took longer and continues today. The Fed’s combination of a well-designed central bank and an effective conceptual framework enabled Bernanke to state confidently that “we won’t do it again.”

Источник: https://www.federalreservehistory.org/essays/great-depression

If you’re looking for an industry that is set to thrive following the pandemic, regional banks are a great area of the market to check out. Companies operating in the sector tend to be more sensitive to economic activity and upticks in loan activity, which both should be bouncing back in the coming months. Keep in mind that most of the emergency stimulus measures enacted by the U.S. Government and the Federal Reserve are ending, so many consumers and businesses will look to regional banks for support. There have also been some indications from the Fed that interest rate hikes are coming as soon as next year, which would certainly be a huge benefit to these companies.

The sector has already delivered strong returns this year, as the KBW Nasdaq Bank Index (BKX), which tracks the performance of 24 banking stocks representing large U.S. national money centers, regional banks, and thrift institutions, is up over 37% year-to-date versus 16.21% for the S&P 500. It’s also been interesting to see how regional bank stocks have held up during the recent market selloff, as many of them have shown relative strength and could be strong buys once the market turns. That’s why we’ve put together the following list of 3 standout regional bank stocks to buy now. Let’s take a deeper look below.

SVB Financial Group (NASDAQ: SIVB)

This regional bank is a buy thanks to its position as one of the top financial services companies in the innovation space. SVB Financial Group offers commercial and private banking, asset management, and other investment services through its primary subsidiary, Silicon Valley Bank. The company also operates as a commercial bank with a niche focus on technology, life sciences, and PE/VC firms, which means that it is one of the key players providing capital to tech start-ups. There aren’t many banks out there that offer this type of exposure, and according to the company, 63% of U.S. venture capital-backed companies that went public in H1 2021 were SVB clients.

SVB Financial Group operates through 30 regional offices in the U.S. and has a presence in the UK, Canada, Israel, Germany, Denmark, India, and China, and it's worth noting that there are plenty of opportunities for the company to expand internationally. SVB reported a record net revenue of $3.97 billion in 2020, up 20.4% year-over-year, even with the impact of historically low interest rates, which is quite impressive. The company also recently completed the acquisition of Boston Private Financial Holdings for $1.2 billion which should be viewed as a positive, as it strengthens the company’s private banking business and could lead to nice cross-selling opportunities going forward.

Signature Bank (NASDAQ: SBNY)

Next up is Signature Bank, a regional bank headquartered in New York that operates through two segments, commercial banking, and specialty finance. Signature’s commercial banking segment involves commercial real estate lending, commercial and industrial lending, fund banking, venture banking, and more, while the specialty finance segment involves financing and leasing products like equipment, transportation, commercial marine, municipal, and national franchise financing. It’s a high-quality bank stock for several reasons, particularly since it is hitting record highs in a very weak period for the market.

First, the company stands out because it is seeing record balance sheet growth at this time and adding more loans to its balance sheet than most competitors. In Q2, Signature Bank reported record net income, record total deposits, and record loan growth, so it's clear that business is booming. Signature Bank also has an interesting business strategy that focuses on enhancing the client experience by allowing its customers to interact directly with bankers and senior-level management. Finally, the company has a proprietary, blockchain digital payments platform called Signet that could lead to an expanded digital assets business in the future, making this a top pick in the regional banking industry.

SPDR S&P Regional Banking ETF (NYSEARCA: KRE)

While the two stocks mentioned earlier in this article both offer something unique, sometimes it's best to simply buy a sector ETF to add exposure to a certain area of the market. That’s why the SPDR S&P Regional Banking ETF makes our list, as it’s a simple way to add 133 of the top regional banks to your portfolio and take advantage of a 2.15% dividend yield.

This ETF has rallied over 34% year-to-date and could be in for a strong finish to the year if we receive more encouraging news about the economy. Some of the top holdings in the SPDR S&P 500 Regional Banking ETF include Sterling Bancorp, Western Alliance Bancorp, Citizens Financial Group, and the intriguing digital currency play Silvergate Capital.

Источник: https://finance.yahoo.com/news/3-standout-regional-bank-stocks-101000429.html

Stocks: Mellon Makes Lehman's List of Hot Bank Stocks, Displacing First

Mellon Bank Corp. replaced First Fidelity Bancorp. on Lehman Brothers'

The firm rates Mellon among the most likely takeover targets, and argues

Mr. Rosenberg said Fidelity remains a strong institution but noted that

"It's reached the point where it will no longer outperform the group by

It was Mr. Rosenberg's first downgrade of First Fidelity in more than

First Fidelity is one bank that has broken away from the pack, at a time

Mr. Rosenberg pointed out that the bank had been a regional bank leader,

First Fidelity had been one of the star performers in the last few

Analysts said the deposit base is large relative to the bank loan

Several of the forces that made Fidelity one of Lehman Brothers' top

Also, margin pressure compelled Mr. Rosenberg to reduce his earnings-

Lehman Brothers released a bank franchise value model Thursday that

"On a price-to-franchise-value ratio, it's expensive," said Mike Mayo, a

Mr. Mayo compiles the franchise model to account for credit cards,

Takeover targets can be determined by the discrepancy between a bank's

The top three takeover targets in the early part of this year are

Mellon had the largest discrepancy because of its off-balance-sheet

Lehman's bank franchise value for Mellon is $8.3 billion, while its

Mellon's franchise value is so large because it is the second-biggest

Other analysts agree that Dreyfus has upside potential, though they do

"They bought Dreyfus at the wrong time," said Ron Mandle, an analyst at

Mr. Mandle said, however, that the shareholder's outlook on the Dreyfus

"We view a whole series of things (such as underperformance of Dreyfus)

Источник: https://www.americanbanker.com/-52163-1.html

Best Bank ETFs for Q1 2022

Bank exchange-traded funds (ETFs) offer investors exposure to the banking and financial sector of the economy. Banking services can range from taking deposits, making loans, and facilitating payments to investment management, retirement planning, insurance, and brokerage services. Aside from charging fees for these services, banks earn profits by charging higher interest rates on the loans they make than the rates they pay on their customers’ deposits.

Bank ETFs offer a way for investors to share in these profits by investing in a basket of banks and other financial-services companies.

Key Takeaways

  • The banking sector dramatically outperformed the broader market over the past year.
  • The bank exchange-traded funds (ETFs) with the best one-year trailing total returns are FTXO, KBWB, and KRE.
  • The top holdings of these ETFs are Popular Inc., Bank of America Corp., and class A shares of Silvergate Capital Corp., respectively.

Seven distinct bank ETFs trade in the United States, excluding inverse and leveraged funds as well as those with less than $50 million in assets under management (AUM). The banking sector, as measured by the S&P 500 Banks Industry Index, has outperformed the broader market with a total return of 54.1% over the past 12 months compared to the S&P 500’s total werder bremen max kruse of 31.5%, as of Nov. 16, 2021.

The best-performing bank ETF, based on performance over the past year, is the First Trust Nasdaq Bank ETF (FTXO). We examine the three best bank ETFs below. All numbers below are as of Nov. 12, 2021.

First Trust Nasdaq Bank ETF (FTXO)

  • Performance Over One-Year: 70.1%
  • Expense Ratio: 0.60%
  • Annual Dividend Yield: 1.52%
  • Three-Month Average Daily Volume: 86,903
  • Assets Under Management: $291.0 million
  • Inception Date: Sept. 20, 2016
  • Issuer: First Trust

FTXO tracks the Nasdaq US Smart Banks Index, which selects the 30 most liquid U.S. bank securities from the Nasdaq US Benchmark Index and then ranks them based on volatility, value, and growth factors. The ETF is fairly concentrated in the largest names, with the 10 top holdings accounting for about 58% of invested assets.

The top positions in the fund’s portfolio include Popular Inc. (BPOP), which operates as Popular Bank or Banco Popular on the U.S. mainland, and in Puerto Rico and the Virgin Islands; PNC Financial Services Group Inc. (PNC), a super regional bank that offers a range of banking and financial services; and JPMorgan Chase & Co. (JPM), the largest U.S. bank holding company, which offers investment banking and financial services.

Invesco KBW Bank ETF (KBWB)

  • Performance Over One-Year: 67.1%
  • Expense Ratio: 0.35%
  • Annual Dividend Yield: 1.79%
  • Three-Month Average Daily Volume: 1,438,861
  • Assets Under Management: $3.6 billion
  • Inception Date: Nov. 1, 2011
  • Issuer: Invesco

KBWB tracks the KBW Nasdaq Bank Index, a Nasdaq index targeting companies primarily engaged in U.S. banking activities. The ETF invests in stocks that comprise at least 90% of the index. Companies in the KBWB portfolio include large national U.S. money centers, regional banks, and thrift institutions that are publicly traded in the United States. KBWB tends to have a larger proportion of small-cap companies in its portfolio than other bank ETFs.

KBWB’s top 10 holdings account for just under 60% of its invested assets. Its top three holdings are Bank of America Corp. (BAC), one of the biggest U.S. bank holding companies, offering investment banking and financial services; Wells Fargo & Co. (WFC), a major U.S. bank offering diversified financial services; and U.S. Bancorp (USB), a super regional bank holding company.

SPDR S&P Regional Banking ETF (KRE)

  • Performance Over One-Year: 66.6%
  • Expense Ratio: 0.35%
  • Annual Dividend Yield: 1.87%
  • Three-Month Average Daily Volume: 8,300,032
  • Assets Under Management: $5.5 billion
  • Inception Date: June 19, 2006
  • Issuer: State Street

KRE tracks the S&P Regional Banks Select Industry Index, representing the regional banks segment of the S&P Total Market Index. The fund's target index is comprised of regional bank stocks, ranging in size from small cap to large cap. Because of its focus on regional banks, KRE contains a higher proportion of regional bank stocks list and mid-cap bank stocks than many other bank ETFs. The fund is well-diversified, with the top 10 holdings accounting for roughly 22% of invested assets.

Regional bank stocks list top holdings of KRE include class A shares of Silvergate Capital Corp. (SI), a bank providing financial services to businesses in the fintech and cryptocurrency industries; SVB Financial Group (SIVB), a provider of private banking and wealth management services; and Western Alliance Bancorp (WAL), a regional bank.

The comments, opinions, and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or adopt any first horizon bank foundation strategy. While we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described in our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions, and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment, or strategy.

Источник: https://www.investopedia.com/articles/etfs/top-bank-etfs/

If you’re looking for an industry that is set to thrive following the pandemic, regional banks are a great area of the market to check out. Companies operating in the sector tend to be more sensitive to economic activity and upticks in loan activity, which both should be bouncing back in the coming months. Keep in mind that most of the emergency stimulus measures enacted by the U.S. Government and the Federal Reserve are ending, so many consumers and businesses will look to regional banks for support. There have also been some indications from the Fed that interest rate hikes are coming as soon as next year, which would certainly be a huge benefit to these companies.

The sector has already delivered strong returns this year, as the KBW Nasdaq Bank Index (BKX), which tracks the performance of 24 banking stocks representing large U.S. national money centers, regional banks, and thrift institutions, is up over 37% year-to-date versus 16.21% for the S&P 500. It’s also been interesting to see how regional bank stocks have held up during the recent market selloff, as many of them have shown relative strength and could be strong buys once the market turns. That’s why we’ve put together the following list regional bank stocks list 3 standout regional bank stocks to buy now. Let’s take a deeper regional bank stocks list below.

SVB Financial Group (NASDAQ: SIVB)

This regional bank is a buy thanks to its position as one of the top financial services companies in the innovation space. SVB Financial Group offers commercial and private banking, asset management, and other investment services through its primary subsidiary, Silicon Valley Bank. The company also operates as a commercial bank with a niche focus on technology, life sciences, and PE/VC firms, which means that it is one of the key players providing capital to tech start-ups. There aren’t many banks out there regional bank stocks list offer this type of exposure, and according to the company, 63% of U.S. venture capital-backed companies that went public in H1 2021 were SVB clients.

SVB Financial Group operates through 30 regional offices in the U.S. and has a presence in the UK, Canada, Israel, Germany, Denmark, India, and China, and it's worth noting that there are plenty of opportunities for the company to expand internationally. SVB reported a record net revenue of $3.97 billion in 2020, up 20.4% year-over-year, even with the impact of historically low interest rates, which is quite impressive. The company also recently completed the acquisition of Boston Private Financial Holdings for $1.2 billion which should be viewed as a positive, as it strengthens the company’s private banking business and could lead to nice cross-selling opportunities going forward.

Signature Bank (NASDAQ: SBNY)

Next up is Signature Bank, a regional bank headquartered in New York that operates through two segments, commercial banking, and specialty finance. Signature’s commercial banking segment involves commercial real estate lending, commercial and industrial lending, fund banking, venture banking, and more, while the specialty finance segment involves financing and leasing products like equipment, transportation, commercial marine, municipal, and national franchise financing. It’s a high-quality bank stock for several reasons, particularly since it is hitting record highs in a very weak period for the market.

First, the company stands out because it is seeing record balance sheet growth at this time and adding more loans to its balance sheet than most competitors. In Q2, Signature Bank reported record net income, record total deposits, and record loan growth, so it's clear that business north texas giving day results booming. Signature Bank also has an interesting business strategy that focuses on enhancing the client experience by allowing its customers to interact directly with bankers and senior-level management. Finally, the company has a proprietary, blockchain digital payments platform called Signet that could lead to an expanded digital assets business in the future, making this a top pick in the regional banking industry.

SPDR S&P Regional Banking ETF (NYSEARCA: KRE)

While the two stocks regional bank stocks list earlier in this article both offer something unique, sometimes it's best to simply buy a sector ETF to add exposure to a certain area of the market. That’s why the SPDR S&P Regional Banking ETF makes our list, as it’s a simple way to add 133 of the top regional banks to your portfolio and take advantage of a 2.15% dividend yield.

This ETF has rallied over 34% year-to-date and could be in for a strong finish to the year if we receive more encouraging news about the economy. Some of the top holdings in the SPDR S&P 500 Regional Banking ETF include Sterling Bancorp, Western Alliance Bancorp, Citizens Financial Group, and the intriguing digital currency play Silvergate Capital.

Источник: https://finance.yahoo.com/news/3-standout-regional-bank-stocks-101000429.html

The Great Depression

“Regarding the Great Depression, … we did it. We’re very sorry. … We won’t do it again.”
—Ben Bernanke, November 8, 2002, in a speech given at “A Conference to Honor Milton Friedman … On the Occasion of His 90th Birthday.”

In 2002, Ben Bernanke, then a member of the Federal Reserve Board of Governors, acknowledged publicly what economists have long believed. The Federal Reserve’s mistakes contributed to the “worst economic disaster in American history” (Bernanke 2002).

Bernanke, like other economic historians, characterized the Great Depression as a disaster because of its length, depth, and consequences. The Depression lasted a decade, beginning in 1929 and ending during World War II. Industrial production plummeted. Unemployment soared. Families suffered. Marriage rates fell. The contraction began in the United States and spread around the globe. The Depression regional bank stocks list the longest and deepest downturn in the history of the United States and the modern industrial economy.

The Great Depression began in August 1929, when the economic expansion of the Roaring Twenties came to an end. A series of financial crises punctuated the contraction. These crises included a stock market crash in 1929, a series of regional banking panics in 1930 and 1931, and a series of national and international financial crises from 1931 through 1933. The downturn hit bottom in March 1933, when the commercial banking system collapsed and President Roosevelt declared a national banking holiday.1  Sweeping reforms of the financial system accompanied the economic recovery, which was interrupted by a double-dip recession in 1937. Return to full output and employment occurred during the Second World War.

To understand Bernanke’s statement, one needs to know what he meant by “we,” “did it,” and “won’t do it again.”

By “we,” Bernanke meant the leaders of the Federal Reserve System. At the start of the Depression, the Federal Reserve’s decision-making structure was decentralized and often ineffective. Each district had a governor who set policies for his district, although some decisions required approval of the Federal Reserve Board in Washington, DC. The Board lacked the authority and tools to act on its own and struggled to coordinate policies across districts. The governors and the Board understood the need for coordination; frequently corresponded concerning important issues; and established procedures and programs, such as the Open Market Investment Committee, to institutionalize cooperation. When these efforts yielded consensus, monetary policy could be swift and effective. But when the governors disagreed, districts could and sometimes did pursue independent and occasionally contradictory courses of action.

The governors disagreed on many issues, because at the time and for decades thereafter, experts disagreed about the best course of action and even about the correct conceptual framework for determining optimal policy. Information about the economy became available with long and variable lags. Experts within the Federal Reserve, in the business community, and among policymakers in Washington, DC, had different perceptions of events and advocated different solutions to problems. Researchers debated these issues for decades. Consensus emerged gradually. The views in this essay reflect conclusions expressed in the writings of three recent chairmen, Paul Volcker, Alan Greenspan, and Ben Bernanke.

By “did it,” Bernanke meant that the leaders of the Federal Reserve implemented policies that they thought were in the public interest. Unintentionally, some of their decisions hurt the economy. Other policies that would have helped were not adopted.

An example of the former is the Fed’s decision to raise first bank kansas app rates in 1928 and 1929. The Fed did this in an attempt to limit speculation in securities markets. This action slowed economic activity in the United States. Because the international gold standard linked interest rates and monetary policies among participating nations, the Fed’s actions triggered recessions in nations around the globe. The Fed repeated this regional bank stocks list when responding to the international financial crisis in the fall of 1931. This website explores these issues in greater depth in our entries on the stock market crash of 1929 and the financial crises of 1931 through 1933.

An example of the latter is the Fed’s failure to act as a lender of last resort during the banking panics that began in the fall of 1930 and ended with the banking holiday in the winter of 1933. This website explores this issue in essays on the banking panics of 1930 to 1931, the banking acts of 1932, and the banking holiday of 1933.

Men study the announcement of jobs at an employment agency during the Great Depression.

One reason that Congress created the Federal Reserve, of course, was to act as a lender of last resort. Why did the Federal Reserve fail in this fundamental task? The Federal Reserve’s leaders disagreed about the best response to banking crises. Some governors subscribed to a doctrine similar to Bagehot’s dictum, which says that during financial panics, central banks should loan funds to solvent financial institutions beset by runs. Other governors subscribed to a doctrine known as real bills. This doctrine indicated that central banks should supply more funds to commercial banks during economic expansions, when individuals and firms demanded additional credit to finance production and commerce, and less during economic contractions, when demand for credit contracted. The real bills doctrine did not definitively describe what to do during banking panics, but many of its adherents considered panics to be symptoms of contractions, when central bank lending should contract. A few governors subscribed to an extreme version of the real bills doctrine labeled “liquidationist.” This doctrine indicated that during financial panics, central banks should stand aside so that troubled financial institutions would fail. This pruning of weak institutions would accelerate the evolution of a healthier economic system. Herbert Hoover’s secretary of treasury, Andrew Mellon, who served on the Federal Reserve Board, advocated this approach. These intellectual tensions and the Federal Reserve’s ineffective decision-making structure made it difficult, and at times impossible, for the Fed’s leaders to take effective action.

Among leaders of the Federal Reserve, differences of opinion also existed about whether to help and how much assistance to extend to financial institutions that did not belong to the Federal Reserve. Some leaders thought aid first keystone community bank pa only be extended to commercial banks that were members of the Federal Reserve System. Others thought member banks should receive assistance substantial enough to enable them to help their customers, including financial institutions that did not belong to the Federal Reserve, but the advisability and legality of this pass-through assistance was the subject of debate. Only a handful of leaders thought the Federal Reserve (or federal government) should directly aid commercial banks (or other financial institutions) that did not belong to the Federal Reserve. One advocate of widespread direct assistance was Eugene Meyer, governor of the Federal Reserve Board, who was instrumental in the creation of the Reconstruction Finance Corporation.

These differences of opinion contributed to the Federal Reserve’s most serious sin of omission: failure to stem the decline in the supply of money. From the fall of 1930 through the winter of 1933, the money supply fell by nearly 30 percent. The declining supply of funds reduced average prices by an equivalent amount. This deflation increased debt burdens; distorted economic decision-making; reduced consumption; increased unemployment; and forced banks, firms, and individuals into bankruptcy. The deflation stemmed from the collapse of the banking system, as explained in the essay on the banking panics of 1930 and 1931.

The Federal Reserve could have prevented deflation by preventing the collapse of the banking system or by counteracting the collapse with an expansion of the monetary base, but it failed to do so for several reasons. The economic collapse was unforeseen and unprecedented. Decision makers lacked effective mechanisms for determining what went wrong and lacked the authority to take actions sufficient to cure the economy. Some decision makers misinterpreted signals about the state of the economy, such as the nominal interest rate, because of their adherence to the real bills philosophy. Others deemed defending the gold standard by raising interests and reducing the supply of money and credit to be better for the economy than aiding ailing banks with the opposite actions.

On several occasions, the Federal Reserve did implement policies that modern monetary scholars believe could have stemmed the contraction. In the spring of 1931, the Federal Reserve began to expand the monetary base, but the expansion was insufficient to offset regional bank stocks list deflationary effects of the banking crises. In the spring of 1932, after Congress provided the Federal Reserve with the necessary authority, the Federal Reserve expanded the monetary base aggressively. The policy appeared effective initially, but after a few months the Federal Reserve changed course. A series of political and international shocks hit the economy, and the contraction resumed. Overall, the Fed’s efforts to end the deflation and resuscitate the financial system, while well intentioned and based on the best available information, appear to have been too little and too late.

The flaws in the Federal Reserve’s structure became apparent during the initial years of the Great Depression. Congress responded by reforming the Federal Reserve and the entire financial system. Under the Hoover administration, congressional reforms culminated in the Reconstruction Finance Corporation Act and the Banking Act of 1932. Under the Roosevelt administration, reforms culminated in the Emergency Banking Act of 1933, the Banking Act of 1933 (commonly called Glass-Steagall), the Gold Reserve Act of 1934, and the Banking Act of 1935. Regional bank stocks list legislation shifted some of the Federal Reserve’s responsibilities to the Treasury Department and to new federal agencies such as the Reconstruction Finance Corporation and Federal Deposit Insurance Corporation. These agencies dominated monetary and banking policy until the 1950s.

The reforms of the 1930s, ’40s, and ’50s turned the Federal Reserve into a modern central bank. The creation of the modern intellectual framework underlying economic policy took longer and continues today. The Fed’s combination of a well-designed central bank and an effective conceptual framework enabled Bernanke to state confidently that “we won’t do it again.”

Источник: https://www.federalreservehistory.org/essays/great-depression

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