5 Regional Bank Stocks Analysts Love

5. U.S. Bancorp

Shares of U.S. Bancorp (USB) have given up 6% in 2011.

The bank saw strong lending trends in the third quarter, driving a net income growth of 40% year-over-year to $1.273 billion or 64 cents per share from $908 million or 45 cents per share in the third quarter of September 2010. Net revenues rose 4.5% on a year-on-year basis and 2.2% quarter on quarter.

U.S. Bancorp saw average total loans increase 5% over the corresponding quarter of the previous year- 4.5% excluding acquisitions. Average total commercial loans jumped nearly 12%, with the quarterly average commercial and commercial real estate commitments growing 16.8% year-on-year.

"For all the talk earlier this year about when will loan growth come back, we are surprised that more isn't being made about the solid growth at USB," Oppenheimer analyst Chris Kotowski wrote in a report following the results. "Not only was the growth significant (7% annualized including the covered assets and 9.5% annualized excluding the covered assets), it's coming across almost their entire portfolio."

The bank is also simultaneously benefiting from improving credit quality, with the net charge-offs declining 10% in the third quarter over the previous quarter. Provision for loan losses fell 48% to $519 million.

The company released reserves totaling $150 million, slightly lower than the previous quarter, as credit trends stabilized.

22 out of the 34 analysts covering the stock rate it a buy. 12 analysts maintain a hold rating and one analyst has a sell rating.

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