Seven years have passed since the financial crisis, but many investors still won’t have anything to do with banks because of the key role “too-big-to-fail” institutions played in trashing the economy. Trouble is, though, banks are among the companies that stand to benefit most as the Federal Reserve gradually hikes interest rates.

So what’s today’s bank-phobic investor to do? We say go regional.

Regional banks are more conservative, typically carrying much less debt and avoiding the types of high-risk fixed-income trades that have lost the big banks many billions. And since they focus mainly on making loans and taking deposits, regional banks can better profit from higher interest rates in ways that don’t expose shareholders to undue risk.

A regional bank every investor should consider: a small-cap called Access National (Nasdaq: ANCX), the holding company for Virginia-based Access National Bank. Through its banking operations, Access is a leading provider of credit, deposit, mortgage and wealth management services to businesses and professionals in the Washington, D.C. area.

The bank is nothing if not reliable, consistently generating annual revenue of $55 to $65 million the past five years and once even going well beyond that range ($86 million in 2012). Margins expanded considerably during that time, helping Access nearly double earnings to $1.43 per share and boost dividends 15-fold to $0.60 a share. Its stock currently yields 2.8%.

In an October 13 press release, Access reported third-quarter net income of $3.9 million—the 61st quarterly profit in the bank’s 63-quarter history (it was founded in 1999). Net interest income, the main source of profits, rose 11% from last year’s third quarter to $10.1 million.

Such results echo especially strong growth in Access’s portfolio of loans held for investment—those the bank intends to keep for the long-term rather than sell off for quick cash. This portfolio, which includes real estate construction loans and various types of commercial real estate mortgages, grew at an annualized 12.4% during the first three quarters of the year.

In Access’s latest quarterly filing, management expressed concern about a key profitability metric: net interest margin, the difference between what the bank charges on loans and what it pays depositors:

The historically low interest rate environment continues to negatively impact yields of variable loans and the securities portfolio. The Corporation’s net interest margin for the three months ended September 30, 2015 decreased to 3.70% from the three months ended September 30, 2014 percentage of 3.78%. While there is no certainty to the magnitude of any impact, the continued extended period of low short-term interest rates, as presently forecasted by the Federal Reserve, will continue to have an adverse effect on the net interest margin.

Still, in Access’s case, this metric is substantially better than the banking industry average of just under 3%. And with the odds of Fed tightening now much higher than they were just a month or two ago, net interest margin pressures could soon begin to ease.

Around the Roadrunner Portfolios

Roadrunner value pick Exactech (Nasdaq: EXAC) has been cranking out new additions to its lineup of orthopedic devices used to rebuild deteriorated bones and joints. In the past few months alone, the firm announced initial surgical successes with implants that salvage failed knee and hip replacements. It introduced a shoulder reconstruction prosthesis and spinal restoration implant recently, too.

These innovations couldn’t have come at a better time, as Exactech is faced with softening global sales and stiff currency headwinds in foreign markets, which account for 28% of total revenue. CEO David Petty described the effects of these hurdles during the October 28th conference call.

For the first nine months of 2015, worldwide sales were down 3% to $179.1 million and were flat in constant currency. U.S. sales were $123.3 million, compared with $123.8 million for the first nine months of last year. For the first nine months, international sales were down 9% to $55.8 million but were up 1% in constant currency.

The good news is Petty expects recent launches to juice up business in 2016 and beyond as Exactech expands distribution channels, an area of heavy investment in recent quarters, especially in foreign markets. Within a couple years, the firm should also start seeing healthy revenue from a new ankle prosthesis, which Petty said would debut in operating rooms next year.

In the meantime, investors can take solace in Exactech’s strong financial position, which includes steadily rising cash balances, expanding stockholders’ equity and debt levels well below the medical device industry average.

Its price-to-earnings ratio of 16 is nearly a 30% discount to the historical average of 22 and almost 60% below the industry average P/E of 36. Since product innovations are clearly setting the stage for a strong rally, we’d call Exactech one of the deepest values around.

We’ll never get why only one Wall Street analyst bothers to follow Weyco Group (Nasdaq: WEYS), which has been in our small-cap value portfolio for nearly two years. Granted, the venerable footwear retailer isn’t grabbing headlines with soaring stock prices, but it’s a top-notch dividend payer and total returns are solid. Shares of Weyco delivered an annualized 7% with about 20% less volatility than the S&P 500 over the past three years.

Currently best known for BOGS brand footwear, the firm also markets under half a dozen other well-known names like Florsheim, Stacy Adams and Umi. A long history of brand success has led to decades of steady dividend hikes, and Weyco’s current payout of $0.80 a share translates into a hearty 3% yield. Dividends compounded at a sturdy 5% rate over the past five years.

Third-quarter results included record sales of $91.2 million, a solid 4% year-over-year gain. Company management highlighted areas of particular strength in a press release:

Net sales in the North American wholesale segment, which include North American wholesale sales and licensing revenues, were $74.6 million for the third quarter of 2015, up 10% as compared to $68.0 million in the third quarter of 2014.  Within the wholesale segment, net sales of our BOGS brand were up 20% for the quarter, due to strong sales of its core products as well as positive acceptance of its new leather footwear. Net sales of our Stacy Adams brand were up 10% for the quarter, driven by strong new product sales.

During the November 2nd conference call, CEO Tom Florsheim, Jr. was optimistic about plans for Weyco’s Florsheim business, which grew 4% in the third quarter:

In September, we came out with a new print and internet campaign via Sports Illustrated, highlighting Florsheim’s contemporary dress casual product. To help get the new look of Florsheim out to consumers, we’re investing more in marketing with Sports Illustrated being the main media vehicle in 2015.

Later this month, we will be launching a collaboration with George Esquivel, called Florsheim ex Esquivel. Esquivel is an award winning designer out of California who has its all men’s and women’s lines with the strong find in the high end artisan footwear market. An exciting aspect about this collaboration is that the footwear’s been manufactured at Esquivel’s studio factory outside of LA with all footwear components sourced in the USA.

Florsheim acknowledged that currency weakness in Canada, Australia and other foreign markets is putting a bit of a squeeze on margins. But we doubt that will hinder Weyco’s dividend growth anytime soon.

The dark cloud of crashing energy prices continues to hang over value portfolio holding RPC Inc. (NYSE: RES), a provider of oilfield services and equipment mainly to domestic energy exploration, production and development companies. At about $12.25 a share, RPC’s stock is nearly 50% below its summer 2014 peak. And as oil and gas plummet further still, breaching lows many analysts never anticipated, we expect RPC’s stock to recover only slowly.

Third-quarter performance, reported October 28th, reflected the firm’s tribulations. Yet, results also illustrated underlying strength that should help nicely position RPC for an eventual energy- sector rebound.

First the bad news, as delivered by CFO Ben Palmer during the latest conference call:

For the third quarter, revenues decreased to $291.9 million compared to $620.7 million in the prior year. These lower revenues resulted from decreased activity levels and pricing in almost all of our service lines. EBITDA for the third quarter decreased by 90.6% to $15.4 million compared to $163.4 million for the same period last year. Operating loss for the quarter was $51.5 million compared to operating profit of $106.7 million in the prior year. Our diluted losses per share were $0.16 compared to earnings per share of $0.30 in the prior year.

However, several promising bright spots emerged in Q3. Sequentially, revenues were only down 1.9% and operating losses actually shrank slightly to $51.5 million. There were substantial declines in the cost of revenue and in selling, general and administrative expenses.

CEO Richard Hubbell offered an optimistic outlook:

We note that service intensity in our pressure pumping service line increased during third quarter, even in our declining operating environment, which offers a glimpse of an eventual recovery. I am pleased to report that as a result of our expense controls, working capital management and capital expenditure reduction initiatives, the balance on our syndicated credit facility declined to $19.5 million at the end of the third quarter, a decline of $35.4 million compared to the end of the second quarter. Our financial strength will allow us to endure throughout the remainder of this downturn and emerge as a stronger service provider when the industry eventually recovers.