BANF to CVBF: 5 bank stocks with over 20% one-year return

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BANF to CVBF: 5 bank stocks with over 20% one-year return

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 BANF to CVBF: 5 bank stocks with over 20% one-year return

Highlights:

  • BancFirst Corporation (BANF) has an annualized dividend of US$1.44 and a dividend yield of 1.47%. 
  • Columbia Financial, Inc.'s (CLBK) P/E ratio is 24.29, and the forward P/E for one year is 24.49. 
  • CVB Financial Corporation's (CVBF) annualized dividend is US$0.76, while its dividend yield is 2.87%. 
  •  

As inflation hits the US economy, the Federal Reserve is bent on bringing it within the targeted limit using the monetary measure ‘interest rate’. 

As a result, most sectors are taking the blow, with the technology sector being the worst hit. However, the essential goods, energy, and financial sector are a few industries that may benefit or at least have fewer chances to lose in the current market condition.  

Where S&P 500 Index fell nearly 20% year-to-date, the S&P 500 Financials Sector Index decreased 18.25%, reflecting a lower dent in the sectoral performance compared with the broader index.

Bank stocks generally benefit from the rising interest rate scenario. However, some of the big names in the category, such as Wells Fargo (WFC), JPMorgan Chase (JPM), Citigroup (C), and Bank of America (BAC), have not been in the green territory this year.

Here we discuss five bank stocks which gave more than 20% returns in one year. 

BancFirst Corporation (NASDAQ: BANF)

Return in one year: 54.69%

Oklahoma City, Oklahoma-based BancFirst Corp is a bank whose business unit includes community banks, metropolitan banks, Pegasus Bank, and other financial services. 

For the quarter ended March 31, 2022, the bank earned a net interest income of US$78.5 million compared to US$80 million in the same quarter the previous year. The bank's net income came in at US$35.9 million or US$1.08 per share diluted compared to US$42.5 million or US$1.27 per share diluted in the March quarter of 2021.

The net interest margin for the March quarter was 2.78% versus 3.36% a year ago. The decrease was due to lower PPP fees earned in Q1 and an increase in cash held at the Federal Reserve.

The company has a market capitalization of US$3.16 billion. Its P/E ratio is 19.93, and the forward P/E for one year is 20.43. 

It has an annualized dividend of US$1.44 and a dividend yield of 1.47%. 

BANF stock traded from US$100.18 to US$53.77 in the last 52 weeks and closed at US$96.45 on June 28, 2022.

BANF to CVBF: 5 bank stocks with over 20% one-year return

LPL Financial Holdings Inc. (NASDAQ: LPLA)

Return in one year: 41.24%

LPL Financial Holdings is an independent broker headquartered in San Diego, California. The company provides brokerage, investment advisory and a proprietary technology platform for financial advisors and institutions. 

It had around 20,000 advisors on its platform at the end of 2021.

The banking firm posted a revenue of US$2.07 billion for the March quarter of 2022 compared to US$1.71 billion for the same quarter a year ago. Its net income came in at US$133.7 million versus US$129.6 million in the March quarter of 2021. The EPS diluted for the March quarter of 2022 and 2021 were US$1.64 and US$1.59, respectively.

LPLA has a market capitalization of US$15.3 billion. Its P/E ratio is 33.7, and the forward P/E for one year is 20.05. 

Its annualized dividend is US$1.0, and its dividend yield is 0.52%. 

The stock traded between US$220.80 and US$127.03 in one year and closed at US$191.44 on June 28, 2022.

First Horizon Corporation (NYSE: FHN)

Return in one year: 28.94%

First Horizon Corp is the parent company of First Tennessee Bank, a regional bank. The bank has approximately 200 branches around Tennessee. 

The company headquarter is located in Memphis, Tennessee.

For the three months ended March 31, 2022, its total interest income was US$510 million compared to US$552 million in the same quarter the previous year. Its net income came in at US$198 million or US$0.34 per diluted share compared to US$236 million or US$0.40 per share diluted in the March quarter of 2021. 

FHN stock has a market capitalization of US$11.9 billion. Its P/E ratio is 13.25, and the forward P/E for one year is 14.75. 

It has an annualized dividend of US$0.60, and its current dividend yield is 2.69%. 

The stock traded in the range of US$24.24 to US$14.67 in the last 52 weeks and closed at US$22.28 on June 28, 2022.

Columbia Financial, Inc. (NASDAQ: CLBK)

Return in one year: 24.49%

Fair lawn, New Jersey-based Columbia Financial Inc is a holding company. It offers one-to four-family residential loans, construction loans, commercial real estate and multifamily loans, commercial business loans, home equity loans and advances, other consumer loans and insurance.

The company's interest income came in at US$68.7 million for the quarter ended March 31, 2022, compared to US$67.6 million a year ago. Its net income was US$20.4 million or US$0.20 per share diluted versus US$21.1 million or US$0.20 in the previous year’s March quarter. 

In May, it completed the acquisition of RSI Bank. The depositors in RSI Bank became depositors of Columbia Bank after the merger with the same rights and privileges as Columbia Bank MHC's depositors have. 

CLBK stock has a market capitalization of US$2.4 billion. Its P/E ratio is 24.29, and the forward P/E for one year is 24.49. 

The stock traded in the range of US$22.71 to US$16.69 in the last 52 weeks and closed at US$21.55 on June 28, 2022.

BANF to CVBF: 5 bank stocks with over 20% one-year return © Jirsak | Megapixl.com

 CVB Financial Corporation (NASDAQ: CVBF)

Return in one year: 22.77%

Ontario, California-based CVB Financial Corp is the holding company for Citizens Business Bank. Citizens Business Bank offers banking services, including lending and investing. 

It generated a total interest income of US$114 million compared to US$105.5 million in the same quarter the previous year. Its net income came in at US$45.6 million or US$0.31 per share diluted compared to US$63.9 million or US$0.47 per share diluted for the March quarter of 2021. 

The stock has a market capitalization of US$3.5 billion. Its P/E ratio is 17.54, and the forward P/E for one year is 16.53. 

Its annualized dividend is US$0.76, and its dividend yield is 2.87%. 

The stock traded in the range of US$25.59 to US$18.72 in one year and closed at US$25.29 on June 28, 2022.

Bottom line:

The rising interest rate is not the only parameter that determines bank stocks’ performance, which is why not all banks, including some of the big ones, have performed well this year. Thus, one must do comprehensive analysis before selecting stocks for investment. 

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