Despite the tech sector’s enduring fixation with the “Magnificent Seven,” comprising the likes of Nvidia, Microsoft, Amazon, and others, JPMorgan experts have pinpointed an elite group of bank stocks deserving attention – the undeniably impressive “Magnificent 7” emerging from the small- and mid-cap banking realm.
The Robust First Citizens Bancshares
Established nearly four decades ago, hailing from Raleigh, North Carolina, First Citizens Bancshares (FCNCA) operates as a bank holding company overseeing various subsidiary banks. Covering retail and commercial banking services, the company boasts a market cap of $25.17 billion.
FCNCA’s stock has surged 22% year-to-date, with a modest 0.28% dividend yield.
Western Alliance Bancorporation: A Focused Maverick
With a concentration on commercial lending and specialty finance sectors, Western Alliance Bancorporation (WAL) plays a pivotal role. Founded in 1919 and headquartered in Phoenix, WAL’s market cap presently stands at $7.01 billion.
Though WAL shares show a 2.7% YTD decline, the stock offers an enticing 2.3% dividend yield.
Live Oak Bancshares: Navigating Unique Markets
Based in Wilmington, North Carolina, Live Oak Bancshares (LOB) specializes in offering financing solutions to niche markets, including Specialty Banking and SBA Lending. The company’s market cap is $1.59 billion.
While LOB has faced a 21.9% YTD dip, it maintains a modest 0.34% dividend yield.
Pinnacle Financial Partners: A Southeastern Gem
Primarily focusing on the southeastern U.S., Pinnacle Financial Partners (PNFP) is a regional bank holding company initiated in 2000. Serving individual and business clients, the company’s market cap is $6.43 billion.
Despite a 4.3% YTD decline in PNFP stock, the dividend yield stands at 1.05%.
Cullen/Frost Bankers: A Merged Force
Following a merger in 1977, Cullen/Frost Bankers (CFR) offers an extensive array of financial services, including retail banking and wealth management. The company’s market cap has reached $6.88 billion.
Despite a 1.6% YTD stock decrease, CFR boasts a 3.39% dividend yield.
MVB Financial Corp: The Mid-Atlantic Dynamo
Operating out of Fairfax, Virginia, MVB Financial Corp (MVBF) specializes in traditional community banking services and Banking-as-a-Service for fintech and gaming clients. The company’s market cap currently stands at $243 million.
Though facing a 16.4% YTD decline, MVBF offers an attractive 3.61% dividend yield.
Webster Financial Corp: A Historical Beacon
Since its foundation in 1853 in Waterbury, Connecticut, Webster Financial Corp (WBS) has been a stalwart in southern New England. Catering to commercial and consumer banking needs, the company holds a market cap of $7.89 billion.
Despite facing a 9.5% YTD decline, WBS features a commendable 3.48% dividend yield.