5 Best Small Cap Bank Stocks With Dividends

In this article, we will be taking a look at the 5 best small cap bank stocks with dividends. To read our detailed analysis of the banking sector, you can go directly to see the 10 Best Small Cap Bank Stocks With Dividends.

5. Preferred Bank (NASDAQ:PFBC)

Number of Hedge Fund Holders: 13

Dividend Yield as of May 20: 4.74% 

Preferred Bank (NASDAQ:PFBC) is a regional bank providing commercial banking products and services. It is based in Los Angeles, California.

Matthew Clark, an analyst at Piper Sandler, holds an Overweight rating on Preferred Bank (NASDAQ:PFBC) shares as of April 20.

Analysts have placed an average price target of $76.50 on Preferred Bank (NASDAQ:PFBC) shares, which were trading at $46.40 on May 20. This gives the stock an upside potential of 64.87%.

There were 13 hedge funds long Preferred Bank (NASDAQ:PFBC) in the fourth quarter, with a total stake value of $50.9 million.

4. Horizon Bancorp Inc. (NASDAQ:HBNC)

Number of Hedge Fund Holders: 14

Dividend Yield as of May 20: 7.44%

Horizon Bancorp Inc. (NASDAQ:HBNC) is the bank holding company for Horizon Bank. It is based in Michigan City, Indiana.

As of February 22, Piper Sandler’s Nathan Race holds a Neutral rating on Horizon Bancorp Inc. (NASDAQ:HBNC) shares.

Shares of Horizon Bancorp Inc. (NASDAQ:HBNC) have a four-year average P/E ratio of 10.6. In comparison, the shares are currently trading at a P/E ratio of 4.93, leaving them in a position of being attractively valued. The company also has an impressive dividend history, having raised its yield consistently for the past seven years. According to TipRanks, Wall Street analysts see an upside potential of 41.78% on Horizon Bancorp Inc. (NASDAQ:HBNC) shares as of April 22. They have placed an average price target of $15 on the shares, which were trading at $10.58 on April 22.

AQR Capital Management was the largest shareholder in Horizon Bancorp Inc. (NASDAQ:HBNC) at the end of the fourth quarter, holding 561,832 shares. In total, 14 hedge funds were long the stock, with a total stake value of $20.5 million.

3. Peoples Bancorp Inc. (NASDAQ:PEBO)

Number of Hedge Fund Holders: 14

Dividend Yield as of May 20: 6.3%

Peoples Bancorp Inc. (NASDAQ:PEBO) is the holding company for Peoples Bank. It is based in Marietta, Ohio.

On April 13, Janney Montgomery Scott analyst Daniel Cardenas initiated coverage of Peoples Bancorp Inc. (NASDAQ:PEBO) shares with a Neutral rating.

The average price target placed on Peoples Bancorp Inc. (NASDAQ:PEBO) shares is $30, with a high forecast of $32. The shares were trading at $24.76 on May 20. This gives them an upside potential of 21.16%.

Peoples Bancorp Inc. (NASDAQ:PEBO) was found among the 13F holdings of 14 hedge funds in the fourth quarter. Their total stake value was $21.8 million.

2. Heritage Commerce Corp (NASDAQ:HTBK)

Number of Hedge Fund Holders: 17

Dividend Yield as of May 20: 7.05%

Heritage Commerce Corp (NASDAQ:HTBK) is the bank holding company for Heritage Bank of Commerce. It is based in San Jose, California.

Piper Sandler analysts hold an Overweight rating on Heritage Commerce Corp (NASDAQ:HTBK) shares as of April 28.

Heritage Commerce Corp (NASDAQ:HTBK) shares were trading at $7.38 on May 20. Analysts have placed an average price target of $10.67 on the stock. These figures give the stock an upside potential of 44.58%.

Our hedge fund data shows 17 funds long Heritage Commerce Corp (NASDAQ:HTBK) in the fourth quarter, with a total stake value of $25.2 million.

1. PacWest Bancorp (NASDAQ:PACW)

Number of Hedge Fund Holders: 26

Dividend Yield as of May 20: 0.7%

PacWest Bancorp (NASDAQ:PACW) is the bank holding company for Pacific Western Bank, and it provides various banking products like demand, money market, and time deposits. It is based in Beverly Hills, California.

Analysts at Piper Sandler hold an Overweight rating on PacWest Bancorp (NASDAQ:PACW) shares as of March 23.

Analysts on Wall Street see an upside potential of 80.07% on PacWest Bancorp (NASDAQ:PACW) shares. They were trading at $11.29 on April 22, and the average price target placed on them was $20.33. PacWest Bancorp (NASDAQ:PACW) had a net income of $4.04 billion by the end of 2022, and it also offers an incredibly attractive dividend yield of 9.09% as of April 25.

There were 26 hedge funds long PacWest Bancorp (NASDAQ:PACW) in the fourth quarter. Their total stake value was $390 million.

See also 13 Best Bank Dividend Stocks to Buy and 11 Bank Stocks with Insider Buying and Selling Last Week.