Doug Hughes is a specialist in regional banking stocks; the editor of Bank Newsletter focuses on well-positioned small cap banks with strong managements, solid financials and potential attraction as takeover candidates.

Pinnacle Bankshares (PPBN) is a 100 + year old bank in Virginia; it is also growing like crazy, loan quality also very strong, great market share and a wealthy market area.

Earnings power also $3.00 plus a share on this one for 2017 and $3.30 for 2018, banks with huge earnings power like these seem to be prime takeout targets.

The main reason for takeouts is to cut costs, but really no one is going to buy you unless you having strong earnings growth as both of these do, without any rate hikes.  

I see very little downside risk in these shares. Buy today and sleep well. These are the best-to-risk-reward ratios for select banks in over ten years. 

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