NEW YORK (TheStreet) -- Jefferies analyst Ken Usdin on Friday highlighted five regional bank "winners" based on first-quarter earnings reports this week.
The analyst said that in addition to beating consensus earnings estimates, the group of five banks "have also put up decent loan growth and kept [net interest margin] relatively stable," which isn't easy in the prolonged low-rate environment.
Usdin said the only "definitive miss" this week was First Horizon National (FHN) of Memphis, Tenn., which on Thursday reported first-quarter net income available to common shareholders of $30.5 million, or 12 cents a share, missing the consensus EPS estimate of 13 cents, among analysts polled by Thomson Reuters, which the analyst blamed on higher-than-expected mortgage putback expenses, along with net interest margin pressure.
The analyst said that "as expected," industry "loan growth has moderated in the first quarter, driven by a seasonal slowdown in [commercial and industrial lending] and continued real estate-related run-off, adding that "management teams continue to sound upbeat about growth prospects for the remainder of the year."
Heading into next week, Usdin thinks that Signature Bank (SBNY) and SVB Financial Group (SIVB) "could fare better on loan growth," while Regions Financial (RF) and Zions Bancorporation (ZION), "could be a bit more challenged." Usdin also said that among banks that haven't yet reported, SunTrust (STI) "is most exposed" to new mortgage repurchase claims. The following are the five regional bank earnings winners for this week, from Jefferies:Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Product Features:
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV
