Even after watching Southeastern banks rise to national prominence, Keefe, Bruyette & Woods analyst Richard Stillinger still finds reason to get excited about the group.
"The Southeast is one of the stronger economic regions of the country," says Mr. Stillinger, whose admiration for the companies he covers is returned by bankers, who praise his experience and accessibility.
"What I like to see in the banks that I cover is quality," he said. "Quality of earnings, quality of management and quality of their historical record. I don't just look at the numbers."
Looking to 1995, he is recommending Birmingham, Ala.-based Regions Financial, which he believes is undervalued. He is also a fan of First Union Corp., which he says continues to have a low multiple because of unwarranted concerns that it is taking big risks.
"It is one of the powerhouses," he says of the Charlotte-based regional. "Their recent emphasis on capital markets has probably hurt them. I think its an unfair negative perception."
