5 Midcap Banks That You Can Buy Today: New York Community Bancorp, Inc. (NYCB) and More

New York Community Bancorp, Inc. (NYCSE:NYCB) also boasts a sizable dividend, currently paying out over 7%. There is a lot more to like at the bank beyond its dividend, however. They are led by a visionary CEO that has been with the company since 1965, and accumulated over $70 million worth of stock in the company, which helps align his vision with his shareholders’. Following the emerging trend of growth through acquisition, New York Community Bank has smartly grown through acquisitions over the past few years, expanding operations outside its New York base to five different states since 2007.

The last bank on the list
KeyCorp (NYSE:KEY) is the final bank that makes the cut, and it’s easy to see why. It currently trades at a 14% discount to book value and boasts a P/E just under 11. But it’s also important to look beyond valuation to determine if a bank is a good buy. The bank has undertaken a “Fit for Growth” initiative, which should hopefully make the bank more efficient down the road. This is needed because KeyCorp joins People’s United on the list of least efficient banks out there, so any improvement in this area should be welcomed by investors.

My pick of the five
Huntington Bancshares and New York Community Bank are both currently on my short list to buy, and I would be happy to own either one. Both banks look to have a great intermediate- to long-term outlooks, and in the meantime will churn out income in the form of dividends. However, my preference here would be for New York Community Bank.

The article 5 Midcap Banks That You Can Buy Today originally appeared on Fool.com and is written by Robert Eberhard.

Fool contributor Robert Eberhard has no position in any stocks mentioned. The Motley Fool owns shares of Bank of America, Huntington Bancshares, and KeyCorp.

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