10 Best Small Cap Bank Stocks To Invest In Now

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1. Berkshire Hills Bancorp Inc. (NYSE:BHLB)

Market Capitalization as of March 28: $1.21 billion

Number of Hedge Fund Holders: 28

Berkshire Hills Bancorp Inc. (NYSE:BHLB) operates as the bank holding company for Berkshire Bank and provides financial services in the US. It provides both deposit and loan products and services. It also offers wealth management and investment products & brokerage services. It caters to personal, commercial, non-profit, and municipal deposit customers.

In Q4 2024, the company’s Commercial Real Estate (CRE) lending segment showed solid credit quality, with only 0.22% of the loans not earning income by the end of this period. To mitigate risks in this segment, the company is diversifying its CRE book across geography and collateral types. The CRE segment makes up about 294% of the bank’s total capital.

The company’s office loan portfolio, which is a part of the CRE sector, has an average loan-to-value of 60%, which shows a cautious lending strategy. While the current credit quality metrics for the CRE segment are strong, Berkshire Hills Bancorp Inc. (NYSE:BHLB) acknowledges the impact of economic uncertainties here. The company is also focused on integrating with Brookline Bancorp, which is expected to close in H2 2025.

While we acknowledge the growth potential of Berkshire Hills Bancorp Inc. (NYSE:BHLB), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BHLB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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