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Today: Jun 13, 2024

Regional banks: trading low, paying high, book value dividends.

1 min read

In the article titled “Regional Banks Trading Below Book Value And Paying Dividends,” the author discusses the potential value of regional banks that are still recovering from the effects of the collapse of Silicon Valley Bank. The article focuses on several regional banks that are trading below their book value but are also paying dividends. The author highlights the following key points:

  • The SPDR Regional Banking ETF is the benchmark for the sector and owns 140 stocks. It trades at a price-earnings ratio of 8.90 and at 1.07 book value.
  • First Merchants, based in Muncie, Indiana, is a small-cap bank with a market capitalization of $2.04 billion. The stock trades at a price-earnings ratio of 8.12 and a 2% discount to its book value. It pays a dividend of 3.92%.
  • Independent Bankcorp, headquartered in Rockland, Massachusetts, trades at 93% of its book value. The stock has a price-earnings ratio of 10.38 and a dividend of 3.54%.
  • Northeast Community Bank, based in White Plains, New York, trades at a 10% discount to its book value. The stock has a price-earnings ratio of 5.90 and pays a dividend.
  • Premier Financial, based in Youngstown, Ohio, trades at 86% of its book value. The stock has a price-earnings ratio of 6.84 and pays a dividend of 5.54%.

The article suggests that these regional banks may present value opportunities for investors due to their low valuations compared to book value and their dividend payments. However, it also acknowledges that the sector is still recovering from the collapse of Silicon Valley Bank and that there may be risks associated with investing in these stocks.