Slightly Positive Trends Out of Wunderlich Bank Field Trip

Wunderlich Securities hosted a bank field trip in Memphis, Tennessee, earlier this week, with a few particular, generally positive key themes coming out of the event. Pinnacle Financial Partners (NASDAQ: PNFP), First Horizon (NYSE: FHN), IberiaBank (NASDAQ: IBKC), BanCorp South (NYSE: BXS), Renasant (NASDAQ: RNST) participated in the event. Wunderlich lists all but BanCorp as a Buy; BanCorp is listed as a Hold.

In a report released by Wunderlich, it said that local economies appear to have stabilized, and in somewhat better economic shape across the American South. Declining unemployment, activity levels among companies, and somewhat healthier housing markets, it went on to say, suggest “modestly improving asset quality trends” for the third quarter.

However, expectations remain that economic growth will be below average for a prolonged time period, which leads to a very low new loan demand. As such, the only way banks will be able to win out will be to take market share from their competitors at this point.

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