Regional Banks: Random thoughts

Given the recent issues with NYCB, and commercial real estate issues, that will impact regional banks more than big banks, I thought I will start this thread where I could post my thoughts.

Amongst the regional banks, OZK, Bank of Ozark, Little Rock Arkansas, has greatest exposure to NYC CRE at $4.5B (17% of loans) and total office exposure at $5.1B (19% of loans).

The above is from Wells Fargo, and they have taken the price target to $39, while the market price is $42.5. These loans are not going to go bad overnight. It will take some time as the loans mature, the true value of collaterals will be discovered, etc. So, it may be difficult to short the stock, as the catalyst may take some time.

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I ran below screen on site, Regional Banks, dividend > 3%, part of R2K, and have positive Insider transaction, i.e., Insider buys. There are 19 stocks. If Insiders are buying, it may be worth a bet. Of course like any other screen, it is only a starting point. Please do further research into these names. Separately this tells me the KRE may not be a bad hold. :slight_smile:

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