Good Investments in Small Packages

Before we head into the weekend, I want to finish my series on bank stocks by going over a few others that are worth attention. These are the banks that I like and have been buying for myself and clients. I worked for years at a firm that made a market in regional and community bank stocks and learned a lot from the traders and analysts who covered the group. Most of my picks in this area are far too small to talk about on Real Money, but I do have a few that may interest readers.

At first glance, Heritage Bank of the South (HBOS) has rising loan losses. It looks like nonperforming loans have risen sharply, year-over-year, when you look at the FDIC report. However, a look inside the numbers shows a much brighter picture. The bank has done several FDIC assisted transaction in the past year and the bulk of the nonperforming loans are part of FDIC assisted transaction and about 80% of potential losses are covered by the regulators. The non-FDIC assisted portfolio had a non-performing loan ratio of just 1.68 % in the latest report released yesterday....459 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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