Content area
Full Text
Bank stock valuations relate more to business model and balance sheet dynamics rather than to location, according to a July 27 report by Keefe Bruyette & Woods.
As a result, KBW regional analysts are now grouping small- to mid-cap banks by credit, capital, profitability and growth measures to better align the universe of bank coverage with appropriate valuation metrics, according to the report. Credit remains the distinguishing factor for many of these banks, and the new universe coverage is split into companies working on credit problems and those focusing on growing EPS through core profitability.
For banks that continue to have a credit overhang, the report recommended names...