Regional Banks Release Mixed Results
Good loan growth helps SouthTrust; fees rise at Wachovia, US Bancorp.
Earnings from the regional banks haven't dazzled so far this week, but shareholders can rest easier knowing that none has set off big alarm bells either.
Good loan growth and tight expense control helped SouthTrust (SOTR) increase net income by 13% from the year-earlier period to $118 million, or $0.70 per share. The company met analysts' consensus earnings-per-share estimate for the period thanks to a $1.7 million gain from securities transactions. Using securities gains to meet analysts' earnings estimates is usually a no-no, but it seems like a mild infraction given SouthTrust's strong record of growth.
Laura Pavlenko Lutton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.