Ranking The Dividend Challengers, Part 10

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Includes: EWBC, FIBK, FNBG, HFWA, NRIM, PACW, PCBK, TBNK, UMPQ
by: Stan Stafford

Summary

Dividend Challengers are stocks that have 5+ years of increased dividends. It is part of the U.S. Dividend Champions list maintained by Dave Fish.

In this series of articles, I will be ranking the Dividend Challengers of various industry sectors based on 15 different metrics.

Out of this group of stocks, my top picks are PacWest Bancorp, Northrim Bancorp, East West Bancorp, and Heritage Financial.

Overview

In this series of articles, I will be ranking the Dividend Challengers of various industry sectors based on 15 different metrics. Dividend Challengers are stocks that have 5+ years of consecutive dividend growth. The stocks are part of the U.S. Dividend Champions list that is maintained by Dave Fish.

For part 10 of this series, I will be reviewing the Dividend Challengers that are in the Banking industry with a focus on Pacific Banks. These stocks include:

  • East West Bancorp (NASDAQ:EWBC)
  • First Interstate Bancsystem (NASDAQ:FIBK)
  • FNB Bancorp (OTCQB:FNBG)
  • Heritage Financial (NASDAQ:HFWA)
  • Northrim BanCorp (NASDAQ:NRIM)
  • Pacific Continental (NASDAQ:PCBK)
  • PacWest Bancorp (NASDAQ:PACW)
  • Territorial Bancorp (NASDAQ:TBNK)
  • Umpqua Holdings (NASDAQ:UMPQ)

These stocks will be ranked based on the following 15 metrics:

  • Dividend Yield
  • Dividend Growth (past five years)
  • Payout Ratio
  • Revenue Growth (past five years)
  • Earnings Growth (past five years)
  • Book Value Growth (past five years)
  • Stock Price Appreciation (past five years)
  • PEG ratio (trailing twelve months)
  • Price to Free Cash Flow ratio (trailing twelve months)
  • Return on Assets (trailing twelve months)
  • Return on Equity (trailing twelve months)
  • Return on Invested Capital (trailing twelve months)
  • Earnings Yield
  • Debt to Equity ratio (trailing twelve months)
  • Price to Book Value (trailing twelve months)

Dividend Yield

Stock Value Ranking
East West Bancorp 2.19% 8
First Interstate Bancsystem 3.11% 3
FNB Bancorp 1.97% 9
Heritage Financial 2.54% 7
Northrim BanCorp 2.75% 4
Pacific Continental 2.67% 5
PacWest Bancorp 5.14% 1
Territorial Bancorp 2.65% 6
Umpqua Holdings 4.16% 2
Click to enlarge

Dividend Growth

Stock Value Ranking
East West Bancorp 300.0% 3.5
First Interstate Bancsystem 95.56% 8
FNB Bancorp 219.1% 6
Heritage Financial 300.0% 3.5
Northrim BanCorp 58.33% 9
Pacific Continental 1.00K% 2
PacWest Bancorp 4.90K% 1
Territorial Bancorp 100.0% 7
Umpqua Holdings 220.0% 5
Click to enlarge

Payout Ratio

Stock Value Ranking
East West Bancorp 29.50% 2
First Interstate Bancsystem 43.09% 5
FNB Bancorp 21.79% 1
Heritage Financial 43.99% 6
Northrim BanCorp 31.53% 3
Pacific Continental 42.89% 4
PacWest Bancorp 71.79% 9
Territorial Bancorp 47.55% 7
Umpqua Holdings 61.35% 8
Click to enlarge

Revenue Growth

Stock Value Ranking
East West Bancorp 27.25% 6
First Interstate Bancsystem 13.22% 9
FNB Bancorp 26.60% 7
Heritage Financial 92.02% 3
Northrim BanCorp 81.40% 4
Pacific Continental 44.41% 5
PacWest Bancorp 227.2% 1
Territorial Bancorp 15.84% 8
Umpqua Holdings 127.1% 2
Click to enlarge

Earnings Growth

Stock Value Ranking
East West Bancorp 116.6% 6
First Interstate Bancsystem 131.8% 5
FNB Bancorp 174.4% 3
Heritage Financial 10.35% 9
Northrim BanCorp 54.87% 7
Pacific Continental 236.3% 2
PacWest Bancorp 445.2% 1
Territorial Bancorp 45.26% 8
Umpqua Holdings 147.2% 4
Click to enlarge

Book Value Growth

Stock Value Ranking
East West Bancorp 40.12% 5
First Interstate Bancsystem 31.83% 7
FNB Bancorp 39.63% 6
Heritage Financial 132.1% 2
Northrim BanCorp 41.20% 4
Pacific Continental 22.15% 8
PacWest Bancorp 705.1% 1
Territorial Bancorp 2.65% 9
Umpqua Holdings 130.2% 3
Click to enlarge

Stock Price Appreciation

Stock Value Ranking
East West Bancorp 72.57% 5
First Interstate Bancsystem 103.7% 2
FNB Bancorp 183.7% 1
Heritage Financial 31.50% 8
Northrim BanCorp 39.06% 6
Pacific Continental 83.85% 3
PacWest Bancorp 81.89% 4
Territorial Bancorp 26.52% 9
Umpqua Holdings 33.54% 7
Click to enlarge

PEG Ratio

Stock Value Ranking
East West Bancorp 2.85x 7
First Interstate Bancsystem 5.03x 8
FNB Bancorp 0.32x 1
Heritage Financial 0.50x 4
Northrim BanCorp 6.25x 9
Pacific Continental 0.48x 3
PacWest Bancorp 0.39x 2
Territorial Bancorp 2.38x 6
Umpqua Holdings 0.58x 5
Click to enlarge

Price to Free Cash Flow Ratio

Stock Value Ranking
East West Bancorp 10.04x 5
First Interstate Bancsystem 9.45x 4
FNB Bancorp 12.76x 7
Heritage Financial 8.41x 2
Northrim BanCorp 45.49x 9
Pacific Continental 10.91x 6
PacWest Bancorp 7.60x 1
Territorial Bancorp 14.63x 8
Umpqua Holdings 8.72x 3
Click to enlarge

Return on Assets

Stock Value Ranking
East West Bancorp 1.25% 2
First Interstate Bancsystem 1.00% 6
FNB Bancorp 0.84% 8.5
Heritage Financial 1.03% 5
Northrim BanCorp 1.18% 3
Pacific Continental 1.14% 4
PacWest Bancorp 1.71% 1
Territorial Bancorp 0.84% 8.5
Umpqua Holdings 0.96% 7
Click to enlarge

Return on Equity

Stock Value Ranking
East West Bancorp 12.77% 1
First Interstate Bancsystem 9.20% 4
FNB Bancorp 8.67% 5
Heritage Financial 7.86% 7
Northrim BanCorp 10.11% 2
Pacific Continental 9.89% 3
PacWest Bancorp 8.12% 6
Territorial Bancorp 6.85% 8
Umpqua Holdings 5.82% 9
Click to enlarge

Return on Invested Capital

Stock Value Ranking
East West Bancorp 10.47% 1
First Interstate Bancsystem 8.16% 3
FNB Bancorp 8.01% 4
Heritage Financial 7.53% 5
Northrim BanCorp 8.53% 2
Pacific Continental 7.17% 6
PacWest Bancorp 6.59% 7
Territorial Bancorp 5.43% 8
Umpqua Holdings 4.38% 9
Click to enlarge

Earnings Yield

Stock Value Ranking
East West Bancorp 7.39% 2
First Interstate Bancsystem 7.01% 4
FNB Bancorp 6.70% 7
Heritage Financial 6.91% 5
Northrim BanCorp 9.25% 1
Pacific Continental 6.61% 8
PacWest Bancorp 7.30% 3
Territorial Bancorp 6.30% 9
Umpqua Holdings 6.71% 6
Click to enlarge

Debt to Equity Ratio

Stock Value Ranking
East West Bancorp 0.39x 8.5
First Interstate Bancsystem 0.12x 2.5
FNB Bancorp 0.21x 4
Heritage Financial 0.04x 1
Northrim BanCorp 0.12x 2.5
Pacific Continental 0.39x 8.5
PacWest Bancorp 0.24x 5
Territorial Bancorp 0.31x 6
Umpqua Holdings 0.32x 7
Click to enlarge

Price to Book Value

Stock Value Ranking
East West Bancorp 1.64x 9
First Interstate Bancsystem 1.28x 7
FNB Bancorp 1.21x 6
Heritage Financial 1.11x 4.5
Northrim BanCorp 1.04x 2
Pacific Continental 1.44x 8
PacWest Bancorp 1.05x 3
Territorial Bancorp 1.11x 4.5
Umpqua Holdings 0.86x 1
Click to enlarge

Final Rankings

The Heavyweights

  • PacWest Bancorp - Total Score of 46
  • Northrim BanCorp - Total Score of 67.5
  • East West Bancorp - Total Score of 71
  • Heritage Financial - Total Score of 72

The Middleweights

  • FNB Bancorp - 75.5
  • Pacific Continental - 75.5
  • First Interstate Bancsystem - Total Score of 77.5
  • Umpqua Holdings - 78

The Lightweights

  • Territorial Bancorp - 112

Conclusion

Out of this group of stocks, PacWest Bancorp performed significantly better than the rest of the group, even the other heavyweight stocks. In addition to the best dividend yield and growth rate, PacWest also had the best revenue, earnings, and book value growth of all the stocks. I believe the other heavyweight stocks are all solid buy options for dividend investors, but I do feel that PacWest is the best pick of the bunch.

The middleweight stocks seem to be good options as well with each of the four stocks priced reasonably and each of them having great to good recent quarters in terms of overall performance. Umpqua did see a decline in revenue but remains solid overall with significant loan and deposit growth along with a strong balance sheet.

I recommend avoiding Territorial Bancorp at the moment due to its poor performance in comparison to the other stocks in this article. The stock did have a solid recent quarter, but I don't see enough momentum to assume it will begin outperforming its peers in the foreseeable future.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.