Long a popular target in takeover rumors, CenterState Banks (CSFL)
has not only stayed independent, but has thrived over the past five
years – pairing strong double-digit organic growth with an aggressive
but still disciplined and coherent M&A strategy to drive
above-average growth across multiple metrics. The market has certainly
noticed, as the shares have roughly tripled the performance of regional
banks over the last five years, while slightly outperforming over the
past 12 months.
I’m a little more cautious about
growth banking stories at this point in the cycle, as banks tend to peak
ahead of yield curve inversion. Commercial real estate lending has
gotten pretty frothy in many places, deposit betas continue to rise, and
credit quality is about as good as it can get. Still, if low-to-mid
teens growth is a reasonable long-term expectation, these shares may not
be tapped out just yet.
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CenterState Banks Continues To Leverage Its Strong Florida Franchise
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