Bryn Mawr Bank Corp. (BMTC), SPDR KBW Regional Banking (ETF) (KRE): Forget ‘Too Big To Fail’ — This Small-Cap Bank Is On The Rise

My favorite regional bank stock is Bryn Mawr Bank Corp. (NASDAQ:BMTC), parent of the Bryn Mawr Bank Corp. (NASDAQ:BMTC) Founded in 1889, this Bryn Mawr Bank Corp. (NASDAQ:BMTC), Pa.-based company operates 19 branch offices. For the quarter ended June 30, the bank reported record results of $6.3 million in net income and 46 cents in diluted earnings per share, which compares with net income of $5.3 million and diluted EPS of 40 cents a share in the same period last year.

Bryn Mawr Bank Corp. (NASDAQ:BMTC) recently acquired Davidson Trust and the First Bank of Delaware, which has helped increase earnings. Interest income increased 12.7% during the quarter from $15.9 million in the same period last year. Revenue from wealth management grew 26% to more than $9 million.

As you can see, this little bank is rapidly growing. In the technical picture, shares have been tearing higher since July 1. The price has broken out on the upside after two separate consolidation breakouts.

Risks to Consider: The primary risk with regional banks is the economy. The recovery may slow, and interest rates may stop climbing. Although I firmly think the sector and particularly Bryn Mawr Bank Corp. (NASDAQ:BMTC) makes solid investing sense right now, anything can happen. Always use stop-loss orders and position size wisely when investing.

Action to Take –> I like Bryn Mawr Bank Corp. (NASDAQ:BMTC) right now as a momentum purchase. My target price is $35 a share within the year.

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– David Goodboy

The article Forget ‘Too Big To Fail’ — This Small-Cap Bank Is On The Rise originally appeared on StreetAuthority and is written by David Goodboy.

David Goodboy does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC does not hold positions in any securities mentioned in this article.