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Sept. 24, 2021, 8:34 a.m. EDT

Hovde Group analyst sees regional bank M&A revival in California

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By Steve Gelsi

Hovde Group analyst Ben Gerlinger on Friday said BayCom Corp. /zigman2/quotes/201176387/composite BCML -0.22% , Sierra Bancorp /zigman2/quotes/200051058/composite BSRR -0.04% , California Bancorp /zigman2/quotes/205948906/composite CALB +0.62% and RBB Bancorp /zigman2/quotes/203229620/composite RBB -0.38% appear to be best positioned to outperform peers amid an uptick in mergers and acquisitions among banks in the California market. "Following more than a decade of under-punching rival geographies in both number of deals and total assets acquired, California-based bank M&A is once again alive and well," Gerlinger said in a research note. "More importantly, as the industry comes to grips with the necessity of bulking up asset bases in order to spread ever-increasing technology costs across a larger balance sheet, deal pricing/structure and the pro forma strategy is likely to separate the would-be winners from the rest of the pack." He views RBB Bancorp /zigman2/quotes/203229620/composite RBB -0.38% as undervalued relative to its peers because of its expected loan growth, stable net interest margin, re-acceleration of organic growth and potential M&A opportunities. California BanCorp /zigman2/quotes/205948906/composite CALB +0.62% drew praise from Gerlinger for its organic growth path and improvement in its margins. RBB Bancorp shares are up 61% so far this year and California BanCorp is up 10.9%. The SPDR S&P Regional Banking ETF /zigman2/quotes/200108291/composite KRE -0.86% is up 25.6%.

/zigman2/quotes/201176387/composite
US : U.S.: Nasdaq
$ 18.41
-0.04 -0.22%
Volume: 21,855
Oct. 26, 2021 4:00p
P/E Ratio
10.31
Dividend Yield
N/A
Market Cap
$197.29 million
Rev. per Employee
$304,530
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/zigman2/quotes/200051058/composite
US : U.S.: Nasdaq
$ 24.92
-0.01 -0.04%
Volume: 17,021
Oct. 26, 2021 4:00p
P/E Ratio
9.05
Dividend Yield
3.53%
Market Cap
$383.49 million
Rev. per Employee
$275,324
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/zigman2/quotes/205948906/composite
US : U.S.: Nasdaq
$ 17.78
+0.11 +0.62%
Volume: 8,454
Oct. 26, 2021 4:00p
P/E Ratio
15.87
Dividend Yield
N/A
Market Cap
$145.41 million
Rev. per Employee
$385,345
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/zigman2/quotes/203229620/composite
US : U.S.: Nasdaq
$ 25.90
-0.10 -0.38%
Volume: 25,635
Oct. 26, 2021 4:00p
P/E Ratio
11.31
Dividend Yield
2.01%
Market Cap
$503.19 million
Rev. per Employee
$412,509
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/zigman2/quotes/203229620/composite
US : U.S.: Nasdaq
$ 25.90
-0.10 -0.38%
Volume: 25,635
Oct. 26, 2021 4:00p
P/E Ratio
11.31
Dividend Yield
2.01%
Market Cap
$503.19 million
Rev. per Employee
$412,509
loading...
/zigman2/quotes/205948906/composite
US : U.S.: Nasdaq
$ 17.78
+0.11 +0.62%
Volume: 8,454
Oct. 26, 2021 4:00p
P/E Ratio
15.87
Dividend Yield
N/A
Market Cap
$145.41 million
Rev. per Employee
$385,345
loading...
/zigman2/quotes/200108291/composite
US : U.S.: NYSE Arca
$ 72.43
-0.63 -0.86%
Volume: 5.88M
Oct. 26, 2021 4:00p
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