KeyCorp (KEY), Umpqua Holdings Corp (UMPQ), Great Southern Bancorp, Inc. (GSBC): Three Regional Banks Priced to Buy

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Great Southern Banc Corp.

The final regional bank we will analyze is Great Southern Bancorp, Inc. (NASDAQ:GSBC). In line with our other regional banks, Great Southern acts as the holding company for Great Southern Bancorp, Inc. (NASDAQ:GSBC), which operates in five states across the Midwest from Minnesota to Arkansas. The company currently trades at just 6.62 times trailing twelve months’ earnings with year-over-year earnings growth of 61%. Great Southern Bancorp, Inc. (NASDAQ:GSBC) currently yields 3% with a below average payout ratio of 30%. Great Southern Bancorp, Inc. (NASDAQ:GSBC) has a very high percentage of share outstanding owned by insiders (35%). This percentage shows that management has an extra incentive in running the business well, as the performance of the company’s stock is directly related to their own financial well being.

Wrap Up

The theme seems to be consistent when it comes the regional banks analyzed above. These are well run and undervalued companies that still manage to sport above average yields. The bottom line is that the banking industry is slowly rebuilding its reputation, and these regional banks have suffered as a sort of collateral damage from the financial crisis. The bright side is that these companies are still undervalued and you can collect some dividends while you wait for capital appreciation. My guess is that you won’t have to wait long.

The article 3 Regional Banks Priced to Buy originally appeared on Fool.com and is written by Daniel Paterson.

Daniel Paterson has a position in Great Southern Banc Corp. The Motley Fool owns shares of Great Southern Bancorp and KeyCorp. Daniel is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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