Marty Mosby, Managing Director and Large-Cap Bank Analyst with Guggenheim Securities, LLC, Interviews with The Wall Street Transcript: Super-Regionals Recover and Look for Acquisition Targets

Wall Street Transcript

67 WALL STREET, New York - February 6, 2013 - The Wall Street Transcript has just published its Southeast & Midwestern Banks 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 and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Heightened M&A Activity - Consolidation in Regional Banking - Growth in U.S. Midwest - Regulatory Obstacles and Fee Income Replacement - Rise of Commercial and Industrial Lending

Companies include: Bank of America Corporation (BAC), Citigroup, Inc. (C), JPMorgan Chase & Co. (JPM), Wells Fargo & Company (WFC), US Bancorp (USB), PNC Financial Services Group I (PNC), SunTrust Banks, Inc. (STI), Regions Financial Corp. (RF), BB & T Corp. (BBT), Huntington Bancshares Inc. (HBAN), KeyCorp (KEY), Fifth Third Bancorp (FITB), M&T Bank Corp. (MTB), First Horizon National Corp. (FHN), Zions Bancorp. (ZION), The Bank of New York Mellon Co (BK), Northern Trust Corporation (NTRS), State Street Corp. (STT) and many more.

In the following excerpt from the Southeast & Midwestern Banks Report, an expert analyst discusses the outlook for the regional banking industry.

TWST: What are your top picks or favorite names right now?

Mr. Mosby: If we're looking at the turnaround stories, there are two that fit in this region that we think have not gotten credit for their earnings and the recovery that they've made so far: KeyCorp (KEY) and Regions (RF). Those are two to fit into your regional scope and that are, we think, turnaround stories that still have some credit in their valuations that they would get as they continue to solidify that recovery as they go through this year.

Many of the other Southeastern and Midwest regional banks are continuing to show progress, but are already getting valuations that reflect much of the progress they're going to make this year, so we think they're in the process of going from recovery to profitability, and as they're making that shift - this what we call "teenage years," where they're having to go back to the profitability side and so their valuations and earnings power have to catch up to the current valuations.

If you look at the high-growth quality kind of names that we like, that would be Wells Fargo (WFC), which is not just particular to these regions but serves customers in these two regions. We think that the balance that they have in their business mix will overcome the different pressures that are going on out there, and they're seeing some revenue growth and have continued efficiencies that they can gain with the scale of the company that they have, so in our opinion Wells is a high-quality super-regional bank that serves customers in these regions that we do think has a lot of upside as they go through 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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