In this piece, I have evaluated two regional bank stocks, Norwood Financial Corp. (NWFL) and The Community Financial Corporation (TCFC), to determine which has better return potential. Based on a fundamental comparison of these stocks, I find TCFC a better pick for the reasons explained throughout this article.
The Federal Reserve’s aggressive interest rate hikes since last year to control inflation put immense pressure on the U.S. banking system and was one of the primary reasons for the failure of three large regional banks this year. These bank failures were the biggest since the global financial crisis of 2008. According to the Federal Deposit Insurance Corporation (FDIC), U.S. banks lost $472 billion in deposits during the first quarter.
