Profit Fan

Fidelity Southern: Is The Risk Worth The Reward?

In the past weeks, I have been searching for value in regional banks because I believe they are more in-line to benefit from an improving yield curve than their larger peers. In this search, a few recurring themes have emerged that I feel play a huge factor in deciding which bank is in the best position for future profits and they are as follows:

1. Growing deposit and loan portfolio: While most of the banks I have reviewed seem to have no problem growing deposits, very few of them have had success finding business for their larger deposit base. This could be either because management is more focused on cleaning up its nonaccrual loans and requiring higher loan standards or...

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