- Bank stocks hit hard by COVID-19 pandemic on economic shutdown fears

- FRC is a fast-growing midcap bank with niche focus on wealthy and urban areas

- Its stock off over 20% but 20%+ potential recovery possible after shutdown ends

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Bank stocks have been the bleeding edge of the coronavirus-related bear market of the past eight weeks.  The financial sector is off big and banks, in particular, are down, too.  The financial sector has fallen 27% as of Monday from the market’s Feb. 19 high; the major banks -34 %, and the regionals minus 37%.  Not a pretty picture.

Yet that should be no surprise to an experienced investor, given their preeminently important position in the American industrial eco-structure, and their critical role in the smooth functioning of the economy. In almost every bear market, if there is fear about the economy, then banks and their stocks take the hit.  Business drops, lending dries up, real estate markets freeze.

In this bear, with the ongoing dislocations caused by the virus-related economic shutdown of the U.S., they been among the biggest focal points or whipping boys for investors.  Consequently, I believe banks, in general, are mispriced, and there is a significant amount of potential dislocation in the finan...

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