Piper Sandler: Community banks in the northeastern United States with large wealth management divisions are thriving.

When evaluating community banks in the Northeastern United States, Piper Sandler analyst Mark Fitzgibbon believes that 2024 will be "another potential good year for banks with large wealth management divisions." The analyst believes that in the long term, the demand for capable wealth management providers is very high due to the aging of the baby boomer generation, the largest intergenerational wealth transfer in U.S. history, increasingly complex financial products, and market volatility. The five community banks in the Northeastern United States with relatively large wealth management businesses are: Cambridge Bancorp (CATC.US), Independent Bank (INDB.US), Peapack-Gladstone Financial (PGC.US), Provident Financial Services (PFS.US), and Washington Trust Bancorp (WASH.US). In a report to clients, the analyst stated, "We believe these companies will disproportionately benefit from the rise in the stock and bond markets." The analyst believes that Peapack-Gladstone Financial and Provident Financial Services are the most attractively valued, with a "Hold" rating for both companies. The analyst points out that both companies' stock prices are far below their tangible book value and earnings per share compared to their peers. Additionally, the analyst rates Cambridge Bancorp and Independent Bank as "Neutral," while the rating for Washington Trust Bancorp is "Underperform."