Technical Research on Zions and Comerica: Regional Banks Focus on Efficiency more than Size

 Technical Research on Zions and Comerica: Regional Banks Focus on Efficiency
                                more than Size

PR Newswire

LONDON, February 13, 2013

LONDON, February 13, 2013 /PRNewswire/ --

Regional banks, such as Zions Bancorp (NASDAQ: ZION) which is a Pacific-based
regional bank and Comerica Inc. (NYSE: CMA) a more Midwest focused one, offers
many competitive advantages to national banks. Since they are more tied in to
the economics of the local markets, they offer shareholders a more focused
diversification. This means, their coverage is much more specific, so when one
buys into a regional bank, one knows where he is buying into. However, for
national banks, one does not know what country or sector the bank is exposed
to, so the diversification is uncertain. StockCall has posted free technical
research reports on Zions Bancorp. and Comerica, and these can be accessed by
signing up at

Regional v/s National Banks

In the last five years, regional banks as a whole have performed much better
than national banks as can be seen by the relative performances of ETFs
focusing solely on regional banks as opposed to those comprising national
banks. Throughout these years, their lower exposure to Europe, their loyal
customer-base and their focus on core efficiencies have helped these regional
banks perform extremely well despite the downturn. However, in the ensuing
low-interest rate scenario, they may perform less robustly due to a lack of
economies of scale compared to national banks.

Zions Earnings Review

Last month, ZION released earnings for the last quarter. For common
shareholders, net income applicable was $35.6 million, or $0.19 per diluted
common share, for the quarter, according to the earnings call. The company
stated that their net quarterly charge-off ratio was 0.2%, which is comparable
to what they had for the whole of 2007. The company's non-performing asset
ratio dropped below 2% which shows that the bank is focusing on increasing its
core competencies and performing segments. Download the free report on Zions
Bancorp. upon registration at 

ZION's net income showed a slight decline of 2% compared to the last quarter,
or about $8 million. This is in-line with the guidance provided by Zions in
November. The company last week declared a $0.01 per share dividend for the
quarter, which is the same as the dividend announced in the last quarter.

Comerica, a Strong Regional Bank

Comerica reported decent earnings last month. Its Q4 EPS was at $0.68, beating
street's estimates by 2 cents, and last quarter EPS by 7 cents. Net income
stood at $130 million, $13 million more than the previous quarter. The company
reported that the increase in net income to the tune of 11% was a product of
various factors, such as expense control and various positive cost-cutting
measures in-line with the economic scenario. More importantly, this was a
result of loan and fee income growth in the preceding quarter. Comerica Inc.
technical report can be accessed for free by signing up at 

Comerica also acquired Sterling Bancshares in July of last year in a
stock-for-stock transaction. The acquisition helped Comerica extend its
network across Sterling's customer-base, although ATMs will continue to
operate under the latter's banner. Comerica, with a market cap of about $6.58
billion, is currently trading at $35.06, and has a 52 week range of$27.46 -

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