Note: This article covers a micro-cap stock. Please be aware of the risks associated with these stocks.
This article provides a summary of five of the key players in the Asian American Bank space: Commonwealth Bank (OTCQB:CWBB), Cathay Bank (CATY), East West Bancorp (EWBC), Hanmi Bank (HAFC) and BBCN Bancorp (BBCN). I discuss the merits of each bank and then provide comparisons to assess relative valuation.
While most all banks took a hit in 2007-2009, many Asian-American banks were hit especially hard due to their exposure to Southern California commercial real estate; however, these banks are now in position to thrive. These are primarily Korean-American and Chinese-American banks that serve their respective communities. They are based in the Greater Los Angeles area, with additional branches in other cities where their ethnic groups live. These banks live and prosper along with their ethnic communities. More importantly, they have two key elements