Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Today's Regional Bank Earnings Roundup

Another quarter has ended, and with that come earnings releases. For those investors who follow the financial sector, earnings may have started when JPMorgan Chase and Wells Fargo posted their results last Friday. However, a handful of smaller banks followed their big brothers with results released Tuesday morning.

Savings and loans tend to limit operations to smaller regions of the country, but regional banks are generally less exposed to the risky and exotic activities of some of their larger brethren. Their results can often be an indicator of what has been happening in smaller segments of the economy.


Average Estimated EPS

Actual EPS


Pinnacle Financial Partners (Nasdaq: PNFP  ) $0.16 $0.21 31.2%
Comerica (NYSE: CMA  ) $0.55 $0.66 20.0%
State Street Corporation (NYSE: STT  ) $0.87 $0.85 (2.3%)
US Bancorp (NYSE: USB  ) $0.64 $0.67 4.7%
Webster Financial (NYSE: WBS  ) $0.40 $0.42 5.0%

Sources: Yahoo! Finance and company press releases.

After missing on estimates during the fourth quarter, Pinnacle Financial started off fiscal year 2012 with a strong earnings result, with net income per share up 258% over the same quarter last year. Total nonperforming assets declined for the seventh consecutive quarter, while nonperforming loans declined for the eighth consecutive quarter.

Comerica's net income increased to $130 million, up 36% from the fourth quarter of 2011. In March, the Federal Reserve approved the bank's plan to repurchase $375 million through the first quarter of 2013, as well as a potential dividend increase that would increase the quarterly dividend to $0.15 -- a 50% boost.

Despite a 3% increase in revenue over the same quarter last year, State Street saw a 9% decline in net income from the same period. Nevertheless, the board increased the quarterly dividend to $0.24 a share, returning the dividend to its previous high. The company also approved a new stock repurchase program, authorizing up to $1.8 billion in stock repurchases through the first quarter of 2013.

Warren Buffett favorite U.S. Bank saw increases in many of its business lines during the first quarter, including $56 billion in new lending activity, deposit growth of 11.7% from the same quarter last year, and year-over-year growth in fee revenue. After passing the Federal Reserve stress tests back in March, the Minneapolis bank announced that it would increase its dividend by 56% this year, and continuing strong performance could see future increases.

Webster Financial's net income was down slightly from the previous quarter, but there are many indicators of a strong 2012. Nonperforming assets are down 36.6% from the same quarter last year, while deposits and loan activity are both up during the same period.

Opportunities in regional banks
I like the potential of regional banks personally, but they may not be for everyone. Earnings are just one thing to consider when choosing an investment, so view these results as a small piece of a much larger puzzle. In fact, a bank similar to the ones here is featured prominently in our brand-new free report, "The Stocks Only the Smartest Investors are Buying." To find out which one it is, get your copy today before it's too late.

Fool contributor Robert Eberhard holds no position in any company mentioned. Follow him on Twitter @GuruEbby, or click here to see his holdings and a short bio. The Motley Fool owns shares of JPMorgan Chase. The Fool owns shares of and has created a covered strangle position in Wells Fargo. Motley Fool newsletter services have recommended buying shares of Wells Fargo. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1863868, ~/Articles/ArticleHandler.aspx, 10/26/2016 7:32:00 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 10 hours ago Sponsored by:
DOW 18,169.27 -53.76 -0.30%
S&P 500 2,143.16 -8.17 -0.38%
NASD 5,283.40 -26.43 -0.50%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/25/2016 4:00 PM
CMA $51.80 Up +0.09 +0.17%
Comerica CAPS Rating: ***
PNFP $51.06 Down -0.03 -0.06%
Pinnacle Financial… CAPS Rating: No stars
STT $70.89 Down -0.54 -0.76%
State Street CAPS Rating: *****
USB $43.84 Down -0.18 -0.41%
US Bancorp CAPS Rating: ****
WBS $39.82 Down -0.01 -0.03%
Webster Financial CAPS Rating: *****