Insiders at regionals saw bargains where investors feared to tread.

Insiders at a host of regional banks bought large blocks of their institutions' shares between September and November, indicating optimism about the companies' fortunes in the new year.

Among the institutions that showed high levels of insider activity were those whose shares have been battered the most during the recent dip in bank stocks -- notably Banc One Corp., U.S. Bancorp, and First Interstate Bancorp.

The high level of insider buying signals that bankers disagree with the prevailing view that charges for securities losses and shrinking net interest margins will result in a poor 1995 for their companies.

"Certainly these guys feel that they don't see anything internally happening in the next few quarters to affect them negatively," said Robert Gabele, president of CDA/Investnet, which provided the data.

"If they had seen anything bad, they would have held off on the stock purchases."

Bank stocks have been battered for most of the past four months, so many of the insiders see this as a value opportunity, Mr. Gabele said.

While the insiders are not in a position to know if the Federal Reserve will hike short-term interest rates again, or if so by how much, they do have a sense of their industry, he said.

"They must have a lot of confidence in what they see at this time," he said.

At Mark Twain Bancshares, bank director Michael M. McCarthy bought 41,700 shares at $26.25 and $26.31 on Oct. 7, to bring his told holdings, both direct and indirect, to nearly 170,000 shares, or 1% of all shares outstanding.

One month later the company's chairman, Alvin J. Siteman, announced in New York that several non-Missouri banks had contacted the St. Louis-based company about acquiring it.

The news sent the stock soaring to more than $28. The stock was unchanged at $26.75 on Wednesday.

Mark Twain's chief financial officer Keith Miller said Mr. McCarthy had a standing order for eight weeks to buy when the price fell under $26.50, and no one had advance word of Mr. Siteman's remarks.

At the other banks, most representatives cited the low equity prices and the executives' confidence in the future of the institutions as reasons for the buying.

U.S. Bancorp's CEO Gerry B. Cameron purchased 10,000 shares at $25.25 and $25.375 on Oct. 20. A bank spokeswoman said Mr. Cameron felt the company's low stock price represented a value opportunity, and he had confidence in the future of the company.

Other U.S. Bancorp insiders felt similarly, as 19 other insider buys occurred or options were exercised from September to November. The stock closed unchanged at $22.375 Wednesday.

At Banc One, heavy insider buying was led by John G. McCoy, currently a director and formerly CEO, and by his son and CEO John B. McCoy. Together they bought more than 10,700 shares in September and November.

The elder McCoy bought most of the shares at $24.50. Banc One stock finished unchanged at $25.75 on Wednesday.

Banc One spokesman John Russell said the McCoys purchased the stock because it was an exceptional deal, given the low price. The company's stock declined almost 28% this year.

"When you look at the insider trading at many companies, it should give great confidence to outside investors what management thinks of the institutions," he said.

Both Wells Fargo & Co. and First Interstate had high levels of insider trading. But here the buying and selling had as much to do with exercising options as it did with confidence in the bank.

At First Interstate, CEO Edward Carson exercised options in October on 20,000 shares at between $40 and $53 a share, but sold 20,000 shares at roughly $78 a share. The stock finished down 87.5 cents to close Wednesday at $67.375.

Similarly, Wells Fargo president Paul Hazen exercised options in November on 40,000 shares at $51.375, but sold 40,000 shares at between $145 and $147. The stock closed down $1.75 Wednesday to $144.625.

Barnett Banks Inc. is another institution where heavy insider buying took place. There Thompson L. Rankin, the largest inside owner, purchased 10,000 shares at $40.75 in November. The stock closed down 12.5 cents to $38.75 on Wednesday.

At Trustmark Corp., the Mississippi bank often mentioned as a takeover candidate, CEO Frank R. Day bought nearly 15,000 shares in October and November at between $17.25 and $18. But other insiders at the bank were also extremely active. The bank's stock finished up 50 cents to $16.25.

Integra Financial Corp.'s top inside owner, director Robert A. Paul, bought nearly 35,000 shares on Nov. 29 at $40.125. The stock finished down 12.5 cents to $38.625 on Wednesday.

Heavy insider buying also occurred at State Street Boston Corp. and Meridian Bancorp.

Different Goals First Interstate Insider: Edward M Carson, CEODate: Oct. 21Action: Exercises options on 20,000 sharesDate: Oct. 24Action: Sells 10,000 sharesDate: Oct. 27Action: Sells 10,000 shares U.S. Bancorp Insider: Gerry B. Cameron, CEODate: Oct. 20Action: Buys 10,000 shares

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