Following the lead of their much larger compatriots JPMorgan Chase, Citigroup, and Wells Fargo, many regional banks released second-quarter earnings this week. It was good news for 25 banks, decent news for three banks, and seven banks can be viewed as disappointments depending on how you look at them.
One-time credit equals big earnings beat
Among the bigger surprises of the week was the performance of California-based bank Hanmi Financial
Regional bank favorites continue to impress
Regional banking stalwarts Huntington Bancshares
US Bancorp, on the other hand, was recently lauded by rating agency Fitch for its great performance relative to its regional bank peers, which helps place it in high esteem among some of the largest U.S. banks. The second quarter saw the Minnesota-based bank report record earnings per share, primarily driven by increases in net interest and noninterest income. Furthermore, mortgage banking revenue more than doubled, while its provision for loan losses declined by 18%.
Two who failed to meet expectations
The biggest miss of the week belonged to Independent Bank
Another that failed to meet expectations was Northern Trust
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 to 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 more about the opportunity, get your copy today, before it's too late.
Fool contributor Robert Eberhard holds no position in any company mentioned. Follow him on Twitter, or click here to see his holdings and a short bio. The Motley Fool owns shares of Huntington Bancshares, Citigroup, and JP Morgan Chase. Motley Fool newsletter services have recommended buying shares of Wells Fargo. The Motley Fool has a disclosure policy.