These 3 Regional Banks are in Focus After Earnings

Fifth Third Bancorp (NASDAQ:FITB) reported net income above Wall Street’s expectations for the third quarter. Net income for Fifth Third Bancorp rose to $381 million (40 cents per share) vs. $238 million (22 cents per share) in the same quarter a year earlier. This marks a rise of 60.1% from the year earlier quarter. Noninterest income was $665 million last quarter. FITB beat the mean analyst estimate of 33 cents per share.

“Fifth Third’s third quarter results showed continued strength as we generated a profit of $373 million, up 14 percent from last quarter and more than doubling from last year,” said Kevin T. Kabat, president and CEO of Fifth Third Bancorp. “Return on assets was 1.34 percent and we generated a return on average tangible common equity of nearly 15 percent. Tangible book value per share grew a strong five percent sequentially. Revenue increased three percent sequentially. The primary driver of growth during the quarter was a four percent increase in net interest income. Average loan balances excluding loans held-for-sale were up one percent over last quarter and up two percent on a period end basis.”

Competitors to Watch: Huntington Bancshares Inc. (NASDAQ:HBAN), FirstMerit Corporation (NASDAQ:FMER), Dearborn Bancorp, Inc. (NASDAQ:DEAR), Marshall & Ilsley Corp. (NYSE:MI), Wells Fargo & Company (NYSE:WFC), Bank of America Corp. (NYSE:BAC), PNC Financial Services (NYSE:PNC), JPMorgan Chase & Co. (NYSE:JPM), Citigroup (NYSE:C), SunTrust Banks, Inc. (NYSE:STI), and PrivateBancorp, Inc. (NASDAQ:PVTB).

BB&T Corporation (NYSE:BBT) reported net income above Wall Street’s expectations for the third quarter. Net income for BB&T Corporation rose to $366 million (52 cents per share) vs. $210 million (30 cents per share) in the same quarter a year earlier. This marks a rise of 74.3% from the year earlier quarter.Revenue was $2.1 billion last quarter. BBT beat the mean analyst estimate of 49 cents per share. It fell short of the average revenue estimate of $2.18 billion.

 “We are very pleased to report our strongest earnings quarter in three years,” said Chairman and Chief Executive Officer Kelly S. King. “The increase was driven by significantly improved credit quality and improved net interest income. Net revenues totaled $2.1 billion this quarter, led by taxable-equivalent net interest income of $1.5 billion, up 8% compared to last year. BB&T also posted very healthy, broad-based loan growth,” King said. “BB&T’s average loans held for investment grew an annualized 4%, and, excluding our covered and residential ADC portfolios, increased an annualized 7%. Further, all our leading indicators for loan growth are positive, with robust pipelines and solid momentum as we enter the fourth quarter. “We continue to see impressive growth rates in low-cost deposits and to improve our deposit mix,” King said. “Average deposits increased 32% on an annualized basis compared to the second quarter, and noninterest-bearing deposits and interest checking increased 22% and 14%, respectively. We have reduced the average cost of interest-bearing deposits from 0.72% last quarter to 0.65% this quarter.”

Competitors to Watch: JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Company (NYSE:WFC), SunTrust Banks, Inc. (NYSE:STI), PNC Financial Services (NYSE:PNC), Pinnacle Financial Partners (NASDAQ:PNFP), Regions Financial Corp. (NYSE:RF), Bank of America Corp. (NYSE:BAC), Citigroup (NYSE:C), First Horizon National Corp. (NYSE:FHN), First Security Group, Inc. (NASDAQ:FSGI), and First Citizens BancShares Inc. (NASDAQ:FCNCA).

KeyCorp (NYSE:KEY) reported its results for the third quarter. Net income for KeyCorp fell to $217 million (24 cents per share) vs. $219 million (20 cents per share) a year earlier. This is a decline of 1%. KEY beat the mean analyst estimate of 21 cents per share.

Quoting Management: Chairman and Chief Executive Officer Beth Mooney stated, “Our financial results demonstrate consistent positive momentum for Key as we continue executing our relationship strategy, improving credit quality and maintaining disciplined expense control. We are also pleased that our commercial, financial and agricultural loan portfolio grew for the second consecutive quarter. Our clients continue to benefit from our ability to work together across business lines to deliver value by combining local knowledge and service with specialized industry expertise and advisory capabilities.”

Competitors to Watch: Wells Fargo & Company (NYSE:WFC), SunTrust Banks, Inc. (NYSE:STI), JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corp. (NYSE:BAC), PNC Financial Services (NYSE:PNC), Citigroup Inc. (NYSE:C), Regions Financial Corp. (NYSE:RF), Northrim BanCorp, Inc. (NASDAQ:NRIM), Pacific Continental Corp. (NASDAQ:PCBK), and Zions Bancorporation (NASDAQ:ZION).