An analysis of the stocks of one-bank holding companies

The analysis of a banking institution as an investment opportunity must entail the following areas of study: 1. The general economic conditions. 2. The spread--the difference between the interest rate the bank must pay to attract deposits and the interest rate affected by the demand for loans. 3. The financial analysis. 4. The local economy: market area and growth prospects. 5. The management. Before any investment decisions can be made, each of these areas should be investigated. An investigation of each area will supplement the other, and all five must be done if a complete picture of an investment opportunity is to be obtained. This paper will not deal in detail with the external factors (1 and 2); the local economy (4) and its direct impact on the bank will include the analysis of external factors. The financial analysis, the management, and the market area of each one-bank holding company will be extensively analyzed.