Back to top

Zacks Industry Outlook Highlights: Metrocorp Bancshares, Texas Capital BancShares, Viewpoint Financial Group, S&T Bancorp and Sterling Bancorp

Read MoreHide Full Article

For Immediate Release

Chicago, IL – January 13, 2012 – Today, Zacks Equity Research discusses the U.S. Banks, including Metrocorp Bancshares Inc. ( , Texas Capital BancShares Inc. ( (TCBI - Free Report) , Viewpoint Financial Group ( , S&T Bancorp Inc. ( (STBA - Free Report) and Sterling Bancorp ( (STL - Free Report) .

A synopsis of today’s Industry Outlook is presented below. The full article can be read at

While the financials of a few large banks have been stabilizing on the back of an economic recovery, the industry is still on shaky ground. Nagging issues like depressed home prices along with still-high loan defaults and unemployment levels continue to trouble such institutions.

Lingering economic uncertainly and its effects also continue to weigh on many banks. The need to absorb bad loans offered during the credit explosion has made these banks susceptible to severe problems.

Furthermore, government efforts have not succeeded in restoring lending activity at the banks. Lower lending will continue to hurt margins, though the low interest rate environment should be beneficial to banks with a liability-sensitive balance sheet.

Increasing loan losses on commercial real estate could trigger hundreds of bank failures in the upcoming years. However, the worst appears to be over and the pace of bank failures is expected to be slower. Considering the course of failure last year, the number of bank failures in 2012 is not expected to exceed the 2011 tally.

Eventually, the strong banks will continue to take advantage of strategic opportunities, with the big fish eating the little ones.


Clearly, the banking system is not yet out of the woods, as there are several nagging issues that need to be addressed by the government before shifting the strategy to growth. We believe that the U.S. economy will regain its growth momentum once these are resolved.

However, before the banking sector regains investors’ confidence, it is likely to meet several disappointments on the way that would offset positive developments.


The regulatory requirement of focusing on banking institutions toward higher-quality capital will help banks absorb big losses. Though this would somewhat limit the profitability of banks, a proper implementation would bring stability to the overall sector and hopefully keep bank failures in check.

Specific banks that we like with a Zacks #1 Rank (short-term Strong Buy rating) include Metrocorp Bancshares Inc. ( , Texas Capital BancShares Inc. ( (TCBI - Free Report) , Viewpoint Financial Group ( , S&T Bancorp Inc. ( (STBA - Free Report) , Sterling Bancorp ( (STL - Free Report) , among others.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting

About Zacks is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment

Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at

Visit for information about the performance numbers displayed in this press release.

Follow us on Twitter:

Join us on Facebook:

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Texas Capital Bancshares, Inc. (TCBI) - free report >>

S&T Bancorp, Inc. (STBA) - free report >>

Sterling Bancorp (STL) - free report >>

More from Zacks Press Releases

You May Like