Investing in bank stocks is back in fashion as the industry recovers from the brutal effects of the global financial crisis of 2008-09. Slowly many of the banks are increasing dividends and are reporting higher lending. With hundreds of regional and community banks trading on the markets, selecting individual banks for investment is a complex process.

In this post let me discuss two regional banks which are good for long-term investment:

1. Cullen/Frost Bankers Inc (CFR)

Texas-based Cullen/Frost is a well-run conservative bank. Currently the bank has a market cap of about $3.8 billion and the dividend yield on the stock is 3.14%. The long-term and 5-year return of the stock is impressive.

5-Year return:

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2. Bank of the Ozarks (OZRK)

Bank of Ozarks is a southern regional banks with 111 offices, including 66 offices in Arkansas, 27 in Georgia, 10 in Texas, four in Florida, two in North Carolina, and one each in South Carolina and Alabama. Currently the company has market cap of $1.4 billion and the stock has a dividend yield of 1.57%.

5-Year return:

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Note: Dividend yields noted are as of Feb 15, 2013

Disclosure: No Positions