For Immediate Release
Chicago, IL - January 13, 2012 - Today, Zacks Equity Research
discusses the U.S. Banks, including
Metrocorp Bancshares Inc.
(
MCBI
),
Texas Capital BancShares Inc.
(
TCBI
),
Viewpoint Financial Group
(
VPFG
),
S&T Bancorp Inc.
(
STBA
) and
Sterling Bancorp
(
STL
).
A synopsis of today's Industry Outlook is presented below. The
full article can be read at
http://www.zacks.com/stock/news/67721/U.S.+Banks+Stock+Outlook+-+Jan.+2012
While the financials of a few large banks have been stabilizing
on the back of an economic recovery, the industry is still on shaky
ground. Nagging issues like depressed home prices along with
still-high loan defaults and unemployment levels continue to
trouble such institutions.
Lingering economic uncertainly and its effects also continue to
weigh on many banks. The need to absorb bad loans offered during
the credit explosion has made these banks susceptible to severe
problems.
Furthermore, government efforts have not succeeded in restoring
lending activity at the banks. Lower lending will continue to hurt
margins, though the low interest rate environment should be
beneficial to banks with a liability-sensitive balance sheet.
Increasing loan losses on commercial real estate could trigger
hundreds of bank failures in the upcoming years. However, the worst
appears to be over and the pace of bank failures is expected to be
slower. Considering the course of failure last year, the number of
bank failures in 2012 is not expected to exceed the 2011 tally.
Eventually, the strong banks will continue to take advantage of
strategic opportunities, with the big fish eating the little ones.
Conclusion
Clearly, the banking system is not yet out of the woods, as there
are several nagging issues that need to be addressed by the
government before shifting the strategy to growth. We believe that
the U.S. economy will regain its growth momentum once these are
resolved.
However, before the banking sector regains investors' confidence,
it is likely to meet several disappointments on the way that would
offset positive developments.
OPPORTUNITIES
The regulatory requirement of focusing on banking institutions
toward higher-quality capital will help banks absorb big losses.
Though this would somewhat limit the profitability of banks, a
proper implementation would bring stability to the overall sector
and hopefully keep bank failures in check.
Specific banks that we like with a Zacks #1 Rank (short-term Strong
Buy rating) include
Metrocorp Bancshares Inc.
(
MCBI
),
Texas Capital BancShares Inc.
(
TCBI
),
Viewpoint Financial Group
(
VPFG
),
S&T Bancorp Inc.
(
STBA
),
Sterling Bancorp
(
STL
), among others.
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METROCORP BANCS (
MCBI
): Free Stock Analysis Report
S&T BANCORP INC (
STBA
): Free Stock Analysis Report
STERLING BANCRP (
STL
): Free Stock Analysis Report
TEXAS CAP BCSHS (
TCBI
): Free Stock Analysis Report
VIEWPOINT FINL (
VPFG
): Free Stock Analysis Report
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