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I think it is too early to buy the financials, but I don't think its too early to start compiling a list of stocks to buy for when the time comes.

These are banks trading at or below tangible book value:

Amcore Financial (AMFI)
Bank of Hawaii (NYSE:BOH)
BankFinancial (NASDAQ:BFIN)
Capital Corp of the West (CCOW)
Comerica (NYSE:CMA)
Great Southern Bancorp (NASDAQ:GSBC)
Intervest Bancshares (NASDAQ:IBCA)
Investors Bancorp (NASDAQ:ISBC)
Mercantile Bank (NASDAQ:MBWM)
Old Second Bancorp (NASDAQ:OSBC)
Oriental Financial Group (NYSE:OFG)
Royal Bancshares of Pennsylvania (NASDAQ:RBPAA)
Signature Bank (NASDAQ:SBNY)
Suffolk Bank (NASDAQ:SUBK)
SY Bancorp (NASDAQ:SYBT)
USB (UBH)
West Coast Bancorp (NASDAQ:WCBO)
Yardville National Bancorp (YANB)

I count another 56 banks not in this list that are trading at less than 1.25x tangible book value.

The following banks have dividend yields greater than the yield of the 10-year Treasury bond:

Arrow Financial (NASDAQ:AROW)
Bank of America (NYSE:BAC)
BB&T (NYSE:BBT)
Cadence Financial (NASDAQ:CADE)
Capitol Bancorp (CBC)
Chemical Financial (NASDAQ:CHFC)
Citigroup (NYSE:C)
Citizens Banking (NASDAQ:CRBC)
Comerica (CMA)
Community Bank Systems (NYSE:CBU)
First Commonwealth Financial (NYSE:FCF)
First Horizon National (NYSE:FHN)
First Merchants (NASDAQ:FRME)
FirstMerit (NASDAQ:FMER)
FNB (NYSE:FNB)
Harleysville National (HNBC)
Huntington Bancshares (NASDAQ:HBAN)
Independent Bank (NASDAQ:IBCP)
Irwin Financial (IFC)
MBT Financial (NASDAQ:MBTF)
National City (NCC)
NBT Bancorp (NASDAQ:NBTB)
Old National Bancorp (NASDAQ:ONB)
Omega Financial (OMEF)
Oriental Financial (OFG)
Park National (NYSEMKT:PRK)
Popular (NASDAQ:BPOP)
Regions Financial (NYSE:RF)
Royal Bancshares of Pennsylvania (RBPAA)
Santandar BanCorp (SBP)
Sterling Bancorp (NYSE:STL)
Susquehanna Bancshares (NASDAQ:SUSQ)
US Bancorp (NYSE:USB)
W Holding Co (WHI)
Wachovia (WB-OLD)
WesBanco (NASDAQ:WSBC)
Whitney Holding Corp (NASDAQ:WTNY)

Of course, book value and dividend yield mean nothing if the bank has to write down its assets, or cut its dividend. However, the market will throw out the baby with the bathwater, and there will be tremendous value in specific banks at the bottom of the cycle.

There are dogs on this list for sure. But when this shakes out, once in a generation buying opportunities in banks will be present.

Source: Prepare Yourself To Buy Financials