2013 Predictions for Equity Growth in Southeastern and Midwestern Regional Banks

Wall Street Transcript

67 WALL STREET, New York - July 2, 2013 - The Wall Street Transcript has just published its U.S. Banking Review 2013 Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: U.S. Banking Review 2013

Companies include: MB Financial Inc. (MBFI), Pinnacle Financial Partners In (PNFP), Eagle Bancorp, Inc. (EGBN), BB & T Corp. (BBT), SunTrust Banks, Inc. (STI), Regions Financial Corp. (RF), Fifth Third Bancorp (FITB), KeyCorp (KEY), Bank of America Corporation (BAC) and many others.

In the following excerpt from the U.S. Banking Review 2013 Report, expert analysts discuss the outlook for the sector for investors:

...The second name was Pinnacle Financial (PNFP); this is a name based out of Nashville. Again, they've done a very good job on the credit perspective over the last couple of years, and that credit rehab is largely complete, and now they've turned more offensive and are focused on growing loans. And they've made several key hires. My expectation was that they discontinued the blocking and tackling and are growing loans, which will be a key positive to help the company grow their net interest income in 2013. That was sustainable, whereas a lot of other companies we're looking at we're not as optimistic on loan growth going forward.

Mr. Marinac: From my standpoint, one of the best growing companies in the country has been Eagle Bancorp (EGBN). The company has had a very nice consecutive string of positive earnings surprises, including fourth quarter announced last week. The company, I think, is still well-positioned to grow and produce a healthy return on tangible common equity over 13% in 2013.

I think the company is capable of surprising Street estimates again. They have had a knack for delivering very strong loan growth, but also maintaining expenses fairly well. It's a perfect example of a company who made a strategic decision not to do M&A, and by virtue of not doing M&A they're keeping their overhead very low and they're getting a fair amount of operating leverage, which in plain English means that your expenses are growing a lot slower than your revenues. When you've got your revenues outpacing expenses, it's causing your efficiency ratios to go down, which is positive, and it's causing your earnings and your returns to go up. I think that the company has more to demonstrate of this in the next couple of quarters, and the stock, while it has responded very nicely, I still think has the ability to receive an above-average premium, both on price to tangible book as well as a price to earnings basis, for the coming year.

The other name, a larger cap name that we have a lot of conviction on this year...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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