FCBP - First Choice Bancorp: An Ignored Small-Cap With An Above-4% Yield
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Investment thesis
Investing in financial stocks has become a tricky task due to the interest rate environment. Amidst the fear of rate cuts, however, regional bank stocks have provided stellar returns to investors in 2019, trailing the S&P 500 Index by just 3 percent. However, shares of First Choice Bancorp (FCBP) have significantly underperformed both the Index and the regional banking sector.
First Choice has continued to grow both organically and inorganically in the last 3 years, and the loan portfolio of the bank is of high-quality. Shares yield an