NEW YORK (TheStreet) -- A couple of weeks ago I reviewed four of the largest money center banks in Trading Bank Earnings, Part 1, which broke down the earnings results and identified the best investment opportunities among those.
Now, I will focus on the 12 regional banks, with assets ranging from $50 billion to almost $400 billion. The last two articles in the series will focus the nine financial service firms (credit card companies, asset management firms) and eight global banks with an extensive U.S. presence.
Below I will give you some of my picks and pans in the group.
So, how did the "super-regional" banks fare, and how can you profit going forward? Among the groups I follow, the regionals had a 75% rate of meeting or beating analysts' estimates and stock price appreciation of just 0.5% over three weeks.
This is the second lowest of all other groups including the four money center banks, at 0.4%, eight global banks, at 0.9%, and the nine financial service companies, at 1.6%. The table below indicates key metrics and highlights which banks met or beat earnings and those that missed and by how much.
Of the 12 "super regionals," five exceeded first-quarter 2014 expectations: PNC Financial Services Group
(PNC) beat by 9.6%; KeyCorp
(KEY) beat by 8.3%; Bank of New York Mellon Corp.
(BK) beat by 7.5%; SunTrust Banks
(STI) beat by 10.6% and Regions Financial
(RF) beat by 10%.
Four banks just met estimates: U.S. Bancorp (USB); M&T Bank (MTB); Comerica (CMA) and Huntington Bancshares (HBAN).
Most of the earnings misses were due to a revenue shortfall from the prior quarter for BBT and FITB with declines of 4.2% and 6.3%, respectively for both banks. Zions was hampered by other operating issues including failing both parts of the Federal Reserve's stress test.