All in all equity markets are pretty quiet with the S&P500 up about 1/3rd%.
On the other hand the regional and community banker preferred stocks are taking a spanking–in spite of their earnings reports being pretty darned good. I have small positions in a number of the small banks, but the positions are very small and I am waiting (and waiting) for those issues to find a bottom–and for some of the ‘fear’ to clear out from the First Republic (FRC) seizure and no telling how long that will take–a month or more almost for certain.
One of the smaller banks I really like is Merchants Bancorp (MBIN) which is a Indiana based banker with $14 billion in assets. Shareholders equity has continued to grow in recent quarters which is one item I like to see happen. Their lending is weighted toward multi-family–which up until recently seemed to be a safe haven, but we have seen foreclosures in that segment recently. Obviously best to wait for a bit. There are current yields in the 7.5% to 8.50% area available. Here is their latest earnings data.
All the bankers are here and it would be my recommendation to build a watch list–not for current use, but to watch in the months ahead. The current situation will pass – just may be a while.