Timyan's 2022 Top Stock Picks

Timyan's 2022 Top Stock Picks


2022 is a year for recovery. 

After what we’ve all been through, I’m more grateful than ever for America’s community banks. They’re unique on the planet, critical to their communities, and creating value for investors. They’re what I invest in for my parents and kids, and I’d really like to see more “everyday people” take advantage of these opportunities in their own back yard.

The bank stock picks below fall into the following — not mutually exclusive — categories: 
  • You can buy the stock today for less than it is worth, 
  • You could profit when valuations catch up, 
  • You could earn a windfall if the bank sells, and/or 
  • The dividends provide a nice return. 
 Differences you might notice between this and my 2019 list: 
  • I now have a clear favorite in Pennsylvania. 
  • Three California banks made the list. 
  • Virginia – more than once named Top State for Business by CNBC – presents six bargain bank stocks
  • This year’s list features banks in a few US territories and one British territory.

Disclosure: As of this posting, I own shares of all the bank stocks reviewed in the Timyan Bank Alert except $BKGM, $DBIN, $EQBK, $WASH and $WSFS, and I may subsequently either dispose of them or purchase more. For full disclosure, please note, I personally own many other bank stocks that are not represented in the Timyan Bank Alert portfolio or record.

Timyan's Top Community Bank Stock Picks as of January 2022

Stocks I have reviewed previously include links to their most recent Timyan Bank Alert review.

 

State

Stock

Why It’s My Favorite in The State

Yield

P/B

P/E

AK

DENI

Denali Bancorporation — Stock is still cheap and directors still own over 20%.

6%

100%

14x

AL

AUBN

Auburn National BanCorp – In a great market, and an acquirer could put the bank’s deposits to much better use.

3.3

107%

14x

AR

WRIV

White River Bancshares – Solid bank in a growing market with strong operators, so it’s reasonable to expect the stock to catch up with its peers.

2.5%

99%

11x

AZ

HRRB

Horizon Bancorp – Fingers crossed that they’ve learned from declining previous chances to sell for far more than today’s trading price.

0%

105%

7x

CA

EXSR

Exchange Bank – Stock price has lagged in spite of the bank’s outperforming peers on every return metric. Time will correct this.

3%

82%

7x

CA

SMAL

Summit Bancshares – We know since 2018 they’re open to a sale and the stock is worth even more today, so I’m banking on a return.

1%

111%

17x

CA

UBFO

United Security Bancshares – Founder and Chairman Dennis Woods is in his 70s and owns over a million shares. I hope he’ll cash his check and enjoy retirement.

5.5%

115%

15x

CO

SLRK

Solera National – CEO Marty May has left since our 2019 pick list, Chairman Quagliano bought a plane and put his daughter on the board. So, hmmm —but — the stock is cheap and still performing, so far.

0%

9%

5x

CT

BWFG

Bankwell Financial Group — The bank’s largest investor, Larry Seidman, is now on the board, and operations are rapidly improving.

2.3%

128%

13x

DE

WSFS

WSFS Financial ­– Great bank, but like its only peer in the state (TBBK), too expensive to get excited about from an investment perspective.

1%

176%

9x

FL

PBKC

Pioneer Bankorp – Cheapest bank in the state, and the airport expansion in Clewiston will drive growth.

1.9%

95%

9x

GA

EXCH

Exchange Bankshares – Trading for 30% of what it can sell for, and timely bank buybacks are driving growth in book value.

2.3%

69%

7x

HI

CPF

Central Pacific Financial – If you’re into fintech, this is cheap way to get it, with the added plus of a nice dividend.

3.6%

140%

11x

IA

MOFG

MidWestOne Financial — As hoped, the bank has gotten returns in line with peers. It also acquired an underperforming bank at great price, so stock price is likely to rise. 

2.7%

96%

7x

ID

IDFB

Peak Bancorp – Currently the cheapest community bank stock in the state.

0%

104%

7x

IL

QCRH

QCR Holdings – The bank has consistently beat its earnings estimates.

0.4%

133%

9x

IN

SVBT

SVB & T Corp – This family-founded bank stock is high-performing, cheap, and in good hands with CEO Jamie Shinabarger.

1%

97%

7x

KS

EQBK

Equity Bancshares – Priced comparable to its peers in the state, but has the lowest P/E.

1%

115%

10x

KY

LMST

Limestone Bancorp – Stock is cheap, and key players collectively own over 40%. In other words, the team here is highly incented to keep creating value.

0%

112%

10x

LA

CTUY

Century Next Financial Corp — Still undervalued and still the perfect acquisition candidate for First Guaranty Bancshares.

0.8%

101%

9x

MA

WNEB

Western New England Bancorp – The bank is repurchasing stock, operations are improving, and there’s still a gap between its 2006 and current price.

2.3%

90%

9x

MD

CMHF

Community Heritage Financial – Good performance at a discount compared to its peers in the state.

0.7%

90%

8x

ME

KTHN

Katahdin Bankshares — Still cheap with a branch network that should be appealing to acquirers.

2%

99%

8x

MI

STBI

Sturgis Bancorp – Far cheaper than its peers, in spite of stronger performance and a unique trust business.

3.5%

80%

6x

MN

MFGI

Merchants Financial Group of Winona — Still my favorite in the state, still trading for a fraction of its true value, (although no longer big enough for the Russell Index). 

2.2%

90%

7x

MO

HWBK

Hawthorn Bancshares – Another cheap stock I anticipate will catch up, since the bank is performing far better than average and industry investor Jon Holtaway is on the board.

2.4%

120%

8x

MS

BFCC

BankFirst Capital – The bank is making shrewd acquisitions and adding value along the way so this stock likely won’t stay this cheap for long.

2.2%

100%

9x

MT

EBMT

Eagle Bancorp Montana — Pickings are still slim for cheap bank stocks in Montana. EBMT is still it.

2.2%

100%

9x

NC

BKOR

Oak Ridge Financial Services — Hard to misfire at this price for a very decent bank.

1.6%

97%

7x

ND

BNCC

BNCCORP — Still cheap and the board has shareholders in mind.

%

110%

5x

NE

FINN

First National of Nebraska — Still reasonably priced for a solid, 150 year old family run bank.

0%

125%

7x

NH

NWYF

Northway Financial – Performance has slipped since 2019, but it’s the envy of would-be acquirers and investors like me want to see it sold.

2.6%

91%

11x

NJ

CMRB

First Commerce Bank — Three years past their own declared target sell-by date, but performing well and I have no reason to believe their plans have changed.

0%

82%

8x

NM

BCTF

Bancorp 34 Inc – The only game in town and not bad.

1.5%

85%

9x

NV

GBFH

GBank Financial – Happily, there is now a publicly traded community bank headquartered in Nevada! It’s expensive, but rapidly growing a unique business.

0%

170%

14x

NY

PCSB

PCSB Financial — Valuable underutilized franchise in a great market. Now that the three year conversion moratorium has passed, I’m hoping to see it sell.

1.3%

107%

20x

OH

CFBK

CF Bankshares — A high performing bank, with fully invested management, that investors suspect will sell.

0.75%

115%

7x

OK

BSVN

Bank7 Corp — A very high performing stock that was overly punished by the Chairman’s large sale a few weeks ago.

2.1%

160%

9x

OR

LWCL

Lewis & Clark Bancorp — Rumor has it the bank came close to selling pre-pandemic, and I think it will sooner or later.

0.9%

102%

9x

PA

FRBK

Republic First Bancorp – CEO Vernon Hill wants investors to fund new branches. Investors want to see the bank sold. Given the stock’s current price, investors are right.

0%

80%

12x

RI

WASH

Washington Trust Bancorp — Still pricey, still the only community bank headquartered in Rhode Island. To boot, it’s a great bank that pays a nice dividend.

3.8%

176%

13x

SC

SFDL

Security Federal Corp — When a Director named Spooky Weeks owns 10% and Chairman Timothy Simmons still owns 22%, I can’t say no.

1.4%

89%

8x

SD

DBIN

Dakota Banks — Not a bad bank in a state with few choices.

1.8%

107%

12x

TN

IBTN

InsCorp — Still the cheapest bank stock in a great market, and they are improving their deposit mix as I’d hoped.

1.2%

102%

10x

TX

NODB

North Dallas Bank & Trust – The underperformance here is so great, I can’t advise buying unless you have reason to believe they’ll sell. I’m betting on it.

1.3%

119%

25x

UT

None

There are no publicly traded community bank stocks in Utah on my current buy list.

VA

BOTJ

Bank of the James Financial – Stock price lags franchise value. The wealth management acquisition alone should add 20% to earnings.

1.8%

110%

10x

VA

FDVA

Freedom Financial Holdings – Prior to this gig, CEO Joe Thomas built and sold Bay Bank for a premium. That’s all I need to know.

0%

120%

9x

VA

MSNB

MainStreet Bancshares — I expect they’ll likely fulfill on their stated mission to sell the bank, in spite of their dinking around the past few years.

0%

120%

8x

VA

PKKW

Parkway Acquisition – More than decent operators taking advantage of low valuations to repurchase stock. I will be with them when the market corrects.

2%

88%

9x

VA

TSBA

Touchstone Bankshares – Decent operators taking advantage of low valuations to repurchase stock. I will be them when the market corrects.

2.46%

78%

10x

VA

VBFC

Village Bank & Trust – Likely to sell at some point, but it’s building value so fast I’m enjoying the wait.

1%

139%

7x

VT

MDVT

Middlebury National Corp – I love this little, woman-run bank more every time I look at it. (CEO Linda Harmon has run it since 1995). I’d buy more, but it’s very thinly traded.

2.5%

90%

9x

WA

SFBC

Sound Financial – An affordable stock in a solid woman-run bank. Laurie Stewart is in her 70s, has been CEO since 1989, and has earned a break.

1.5%

127%

11x

WI

PSBQ

PSB Holding – An undervalued high performer that is highly attractive to prospective acquirers.

1.8%

105%

9x

WV

JFWV

Jefferson Security Bank – Stock price currently lags how the bank’s performance suggests it should be priced.

2.1%

90%

8x

WY

CRZY

Crazy Woman Creek Bancorp – Call me crazy — it’s been a slow climber — but it’s still cheap, the only community bank in Wyoming, and accretively buying back stock. Someday, it’ll reach book.

1.3%

90%

8x

GU

BKGM

BankGuam Holding – The only game in the territory, and it is cheap.

3.6%

0.7%

6x

PR

BPOP

Popular, Inc – Not a community bank stock, per se, but it’s the cheapest bank stock in Puerto Rico’s red hot market.

2.2%

108%

7x

BM

NTB

Bank of NT Butterfield & Son – Expensive to book, but cheap on earnings. Pays a great dividend, has superior returns, and benefits from location in a tax haven.

4.6%

200%

12x

 








7 comments :

  1. CFBK price-to-book of 115% is misleading as does not include the preferred C shares issued to Castle Creek in the private placement recap that each convert to 100 common shares. Add those shares into the mix and true price-to-book (which in CFBK's case is the same as price-to-tangible-book) is roughly 135%

    ReplyDelete
  2. Nice article. Your article is maximum helpful. This is a very useful website. This article is really helpful. Thank you so much for sharing this great knowledge. Financial Advisors Financial Counseling Columbus Financial & Success Coach Money Coach Click Here


    ReplyDelete
  3. Exclient blog. Thank you so much for your valuable blog content, this blog is very useful for SEO blog commenting.
    Satta king fast
    Satta result

    ReplyDelete
  4. Wonderful article. It's very useful. It looks like you have put a lot of work into this. Thank you so much for sharing this information. It is really helpful. Debt Financial Education Columbus Financial & Success Coach Find a Financial coach Click here now


    ReplyDelete