Bank of America
Bank of America Corp. (NYSE: BAC) has more or less remained under book value along with Citi in the money center banks. It is valued at 0.95 times book value, and its dividend yield is currently about 2.0%. With a $234 billion market cap, each basis point under book value represents $2.3 billion in discounting. Bank of America has remained under the Fed’s nose for a while longer than JPMorgan and Wells Fargo, and that has been why it has been at a relative discount.
Bank of America traded at $23.83. It has a 52-week range of $14.81 to $25.80 and a consensus target price of $27.00.
Umpqua Holdings Corp. (NASDAQ: UMPQ) is valued at 0.96 times book value and it is only under book value due to the sell-off seen in August. This is the parent company of Umpqua Bank, an Oregon-based community bank with more than $25 billion in total assets and almost $23.5 billion in tangible assets. Its market value of $3.8 billion comes with a 3.7% yield. Its shares are also down more than 10% from its 52-week high.
Umpqua was last seen at $17.30, and it has a 52-week range of $14.78 to $19.50. The consensus target price is $19.68.
FNB Corp. (NYSE: FNB) is valued at 0.97 times book value, but that discount is only because its shares are down 22% from its 52-week high and it was a $16 stock back in March. Its stated book value discount is also a bit different than some other regional banks because it is valued at more than twice tangible book value. The bank’s average loans of $20.4 billion were up $4.2 billion (by over 25%), and the average deposits of $21.2 billion were up $4 billion (about 23.5%) due to its acquired Yadkin balances and organic loan growth. While this screens out as a regional bank with total assets of $31 billion with over 400 regional bank offices, FNB also has wealth management services for asset management, private banking and insurance. FNB has a yield of about 3.7%.
Its shares traded at $12.89, in a 52-week range of $11.86 to $16.43. Its consensus target price is $16.78, and its market cap is $4.2 billion.