Obama Home State Bank Is Pick Of The Litter For Credit Suisse Research Analyst

• On 11:08 am EDT, Monday October 5, 2009

67 WALL STREET, New York - October 5, 2009 - The Wall Street Transcript has just published its Northeast & Mid-Atlantic Regional Banks Report offering a timely review of the sector to serious investors and industry executives. This 130 page 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: Residential Mortgage Situation -- Regional Banks Mergers and Acquisitions Timing Strategy -- Commercial Mortgage Portfolio Decay -- Timing Of Commercial Mortgage Portfolio Bad Debt Write Offs-- FDIC Hit List For Bank Closings -- Mutual Holding Company Structure -- Interest Rate Scenarios -- Banking Pricing Power -- Expensive Bank Valuations -- Tangible Book As Guide For Bank Stock Pricing -- Distressed Sales Of Community and Regional Banks -- TARP Program -- Attitude Of Institutional Investors Towards Resurgence in Community Banking -- Unique Business Models -- Regional Bank Boards Looking For Exit

Companies include: BB and T (BBT); Colonial (CNB); First Niagara (FNFG); PNC (PNC); National City (NCC-PA); Harleysville National (HNBC); Citizens First Bancorp (CTZN); Regions Financial (RF); Bank of America (BAC); SunTrust Banks (STI); Pinnacle Financial (PNFP); Northwest Bancorp Inc. (NWSB); Beneficial (BNCL); Investor Savings Bancorp (ISBC); Territorial Bancorp (TBNK); FNB Bancorp (FNBG.OB); National Penn (NPBC); Trustco Bank (TRST); KeyBank (KEY); MandT Bank (MTB); New York Community Bancorp (NYB); Bank of New York Mellon (BK); Wells Fargo and Company (WFC); JPMorgan Chase and Co. (JPM); Wachovia (WB); Harleysville Savings Bank (HARL); SVB Financial (SIVB); Signature Bank (SBNY); Provident Bank (PBKS); Valley National Bank (VLY); Community Bank System (CBU); NBT Bankcorp (NBTB); Fulton (FULT); Citibank ©; Allied Irish (AIB); Bank of Hawaii (BOH); First Horizon Bank (FHN); Comerica (CMA); Synovus (SNV); Zions (ZION); South Financial Group (TSFG); Bancorp (TBBK); Legg Mason (LM); IBERIABANK Corp. (IBKC); Wilmington Trust (WL); S and T Bancorp (STBA); PHH (PHH); Goldman Sachs (GS); Citigroup ©; U.S. Bancorp (USB); Fifth Third Bancorp (FITB); KeyCorp (KEY); Lehman Brothers; Colonial; Washington Mutual; TD Banknorth (TD), Lakeland (LBAI), Westfield Financial, Inc. (WFD), United Financial Bancorp, Inc. (UBNK), Chicopee Bancorp, Inc. (CBNK)

In the following brief excerpt from just one of the 21 interviews in the 130 page report, the Credit Suisse financial sector analyst discusses the outlook for the sector and for investors.

Craig Siegenthaler is a Senior Equity Research Analyst who covers the financial sector for Credit Suisse in New York. His industry focus includes U.S. regional banks and asset managers.

TWST: Are there any stocks that you like at the moment and are recommending?

Mr. Siegenthaler: Yes, I actually like Bank of Hawaii (BOH). It's not in the region we're discussing, but Bank of Hawaii has a lot of capital. It's very safe on the capital front. Their actual reserve levels are also very, very high, especially relative to the net charge-offs. So it's a well-capitalized, well-reserved bank. Its charge-offs and credit trends are below anybody I cover. I believe the Hawaiian market is an earlier cycle market, especially relative to the Mid-Atlantic. So it's going to get through the credit cycle earlier. Also with Bank of Hawaii, its loan mix is mostly consumer, which is early cycle. So Bank of Hawaii could be pretty close to a peak in its credit trends.

TWST: Any other banks you are excited about?

Mr. Siegenthaler: Not too excited, I can tell you. First Horizon Bank (FHN), they are a Tennessee bank. They have been a troubled bank because they have a lot of problem loans. They had a high level of charge-offs, but they have been very proactive in taking losses. So the one thing I like about First Horizon is they are going to be the first bank to start bleeding reserves into earnings - the first bank to really show a decline in problem loans. So if you are looking for a kind of distressed bank that will be one of the first ones to make it through, that's First Horizon. That's my second favorite bank. The thing is First Horizon's stock has been doing really well, which has taken out some of the upside. But it's still one of my favorite stocks here. Comerica (CMA) is also an interesting bank among the larger ones. Comerica is a Texas-based bank with a lot of business in other places in U.S. They are very big in the Midwest, especially Michigan, which people have been concerned about, but they ended up being very good underwriters in the auto business. Where they weren't great underwriters was on the construction side of things, especially on the West Coast. But I can tell you on a price-to-book basis, it's a very cheap stock. Its credit trends are actually much more attractive than the other banks that trade around that multiple. Then I also believe they have a strong ability to improve their net interest margin, which will raise their earnings power.I mean, they basically are a Michigan-focused bank with exposure to some other geographies, but they've moved to Texas.

TWST: I always associated them with Michigan.

Mr. Siegenthaler: I know. They recently moved to Texas and they're very diversified. They've built a lot of branches out in the West Coast, and they've been building some in Florida - kind of at the wrong time, that's where their problem loans have come from, not Michigan. Michigan has been in a bad economy for like 10 years, not just the last two years. So they are kind of used to operating in the bad economic environment in Michigan and underwriting around it.

The Wall Street Transcript is a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This 130 page special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online .

The Wall Street Transcript does not endorse the views of any interviewees nor does it make stock recommendations.

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