Customers Bancorp, Met Bank, and Northeast Bank are leading the northeast regional bank industry.
As a result of the continuing rise in prices, investors should inspect their portfolios to ensure they're prepared with effective hedging.
Historically, equities have outperformed inflation. However, even within the equity asset class, certain stocks possess features that make them exceptionally well-placed in a rising price scenario.
That is certainly the case with bank stocks.
When bond rates are higher, lenders' net-interest margins rise. That implies a rise in earnings, which can lead to price appreciation and total return for banks paying a dividend.
Customers Bancorp (NYSE:CUBI) is a holding company for Customers Bank, which has locations in several states. The stock debuted on the market in 2013, so it could likely see significant price increases.
The stock is up 0.86 percent in the previous month, 52.41 percent in the previous three months, and 215.29% year over year. In 14 of the past 15 months, it has increased its value.
Customers cleared a flat base on December 16, when the stock gapped up 8.29%. However, it succumbed to the market choppiness and fell to a low of $54.18 on Monday before rebounding in Tuesday’s market rally.
Over the past eight quarters, revenue has increased at double-digit rates on a quarter-after-quarter basis and was strongest in the most recent quarter, when it grew 63% to $268.4 million. Earnings have grown at double- or triple-digit rates in seven of the previous eight quarters, illustrating outstanding strength during the pandemic.
The company said it will rebrand as a “fintech-forward-focused” institution for commercial and consumer clients.
The market capitalization of small-cap Northeast Bank (NASDAQ: NBN) is only $284.9 million. Its beta, on the other hand, is extremely low at 0.53.
Revenue increased at double- or triple-digit rates in the past six quarters. In the previous five quarters, earnings have risen by double digits. Despite a drop in earnings in 2020, Northeast's net income rose once again in fiscal 2021, to $5.80 per share. Analysts anticipate earnings of $9.06 per share for fiscal 2022.
When it comes to hitting analysts' targets, Northeast Bank has a checkered track record. Nonetheless, the stock is up 55.55 percent year to date and 27.70 percent over the previous three years.
Northeast Bank has outperformed both its regional bank category and the overall market.
The current consolidation has dropped 21% thus far. The stock is currently supported at its 50-day line, indicating that selling has been restricted so far. The following buy point would be above the stock's October 11 high of $38.31, although an earlier point may emerge.
Metropolitan Bank (NYSE: MCB) Holdings is a New York-based holding company with a market capitalization of $1 billion. The firm provides products and services to a range of commercial and retail clients as well as lending programs such as acquisition loans, lines of credit, and construction loans.
Despite a correction that began on November 17, the stock has advanced 18.62% in the previous three months and 153.32% year to date. It's down 7.57 percent in the last month, however, as a result of a downturn that started on November 17. The stock fell back from its prior session's high of $104.92.
Metropolitan Bank fell 1.15% on Monday, as the broader market declined, but it recovered much of that loss during the session to close at its trading range high.
The top 10 institutions have 66.7 percent of all outstanding shares. In the previous year, institutional inflows were $200.74 million, whereas outflows were $37.63 million.
As the stock is now consolidating, it isn't in a buy zone. In spite of Tuesday's strong rebound, it's too soon to suggest that the stock has etched its base on the right side.