Lone Star State of Mind
We can't talk about banks and energy without looking the mother of all U.S. energy centers: Texas. The Lone Star state has been the center of domestic energy exploration and production since black gold started bubbling up from the ground. It's home to conventional and unconventional oil fields, as well as offshore drilling in the Gulf of Mexico. The state has a third of the oil and gas reserves in the U.S. and energy is a huge part of the state economy.
The state's largest bank is one of my favorite large regional selections. Dallas-based Comerica (CMA) has extensive exposure to the oil and gas industry and provides financing for a wide range of energy-based projects. Although the bulk of deposits are in Comerica's old home state of Michigan, it has 137 branches and almost $10 billion of deposits in its new home state. The bank has based its future growth on Texas and other Western states, so its deposit base and energy exposure should continue to grow. Trading at 90% of tangible book value, the stock is still cheap enough to buy now....427 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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