Friday, December 21, 2018

Chemical Financial Beaten Up As Investors Flee From Banks

With concerns about a slowing economy, lackluster loan growth, peaking credit quality and rate leverage, and diminishing operating cost leverage, I can understand why investors have moved on from the bank sector in pursuit of greener pastures. In doing so, though, they sold down several banks beyond a point of valuation that I would regard as fair, and Chemical Financial (CHFC) is one such bank.

Although Chemical Financial is not a perfect bank, and Michigan is not a perfect banking market, I believe this growing mid-cap is likely to maintain above-average pre-provision profit growth unless the economy and rates deteriorate sharply over the next two or three years.


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Chemical Financial Beaten Up As Investors Flee From Banks

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