If you really think now is a good time to buy financial stocks, I suggest going with larger banks. I wouldn’t touch any bank under $1B or even $2B. The Frank-Dodd act is brutal on small banks – much more so than the biggies. First, community banks will have a disproportionately large share of their fee income wiped out due to the cap on interchange fees (bye-bye free checking). And, the bill creates a special government fund to bail out big city banks that get in trouble but are "too big to fail." Small-town banks might as well hang out a banner that says "OK to fail."
Time to start building a position under $10 per share. The insiders are buying in the mid 9's. SHBI earnings would have been positive for the 3rd quarter but for the goodwill write off. I look for a pop to 13..