PNC Financial Services (PNC), BOK Financial Corporation (BOKF): Two Regional Banks with Growing Potential

Southern hospitality has been the most important value proposed by Texas Capital Bancshares Inc (NASDAQ:TCBI). The bank has been able to cash in on local businesses and high-value customers.  Above average growth is driven by increasing loans, deposits, and a low desertion rate.  And it’s clear this strategy is working as Texas Capital has been enjoying higher revenue and net income.

But Texas Capital Bancshares Inc (NASDAQ:TCBI) lacks the track record of its peers.  Additionally, as the US economy as a whole recovers, it may find it more difficult to compete.  Also, the bank is experiencing higher operating costs that may cut into revenue.  Despite its top level success, Texas Capital is currently cash flow negative.

Bottom line

Due to strong dividend yields and solid management PNC Financial Services (NYSE:PNC) and BOK Financial Corporation (NASDAQ:BOKF) are very intriguing investment options.  Texas Capital Bancshares Inc (NASDAQ:TCBI) is currently burning through cash and doesn’t have a lengthy track record of outperformance, so you may want to wait.  Overall, you may find an investment in PNC or Bok is a good way to get some regional banking exposure.

The article 2 Regional Banks with Growing Potential originally appeared on Fool.com and is written by Victor Selva.

Victor Selva has no position in any stocks mentioned. The Motley Fool owns shares of PNC Financial Services. Victor 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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