Set Your TV on October 29, 2017 For Sunday Morning Weekend Today in Central NY on NBC 3

Is it Time to Bank on the Banks?

• Both big banks and regional banks have struggled since the 2008 downturn
• On 12/31/2008 JP Morgan was $31.53 and now it is over $100.00
• On 12/31/2008 Community bank stock was $24.39 and as of last week it was $55.64
• BKX, the NASDAQ banking index which represents 24 national and regional banks as well as thrift companies, is up 10.22 YTD and over 37% in one year
• Recently reported bank earnings during the month of October have been better than expected
• All banks have passed the stress test so their balance sheets are in good order
• Banks are raising their dividends which will appeal to income investors
• There will also be a trend toward stock buy backs which will increase the net earnings (fewer stocks spread across the earnings)
• Earning comparisons to previous years will continue to benefit the stock price
• Any Federal Reserve rate increase as well as a rise in inflation may benefit bank earnings