CHICAGO, Jan. 14, 2011 /PRNewswire/ -- Today, Zacks Equity Research discusses the U.S. Banks Industry, including: Sandy Spring Bancorp Inc. (Nasdaq: SASR), Bank of the Ozarks Inc. (Nasdaq: OZRK), Wilmington Trust Corporation (NYSE: WL) and Zions Bancorp (Nasdaq: ZION).

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A synopsis of today's Industry Outlook is presented below. The full article can be read at http://www.zacks.com/stock/news/45937/U.S.+Banks+Stock+Update+-+January+2011

U.S. Banks Stock Update - January 2011

The Treasury's requirement of focusing on banking institutions towards 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 address bank failures.

Specific banks that we like with a Zacks #1 Rank (short-term Strong Buy rating) include Sandy Spring Bancorp Inc. (Nasdaq: SASR) and Bank of the Ozarks Inc. (Nasdaq: OZRK).

The financial system is going through massive de-leveraging, and banks in particular have lowered leverage. The implication for banks is that the profitability metrics (like returns on equity and return on assets) will be lower than in recent years.

Furthermore, the financial crisis has dramatically accelerated the consolidation trend in the industry. As a result, failure of a large financial institution will be a major concern in the upcoming quarters as weaker entities are being absorbed by the larger ones.

We think banks with high exposure to housing and Commercial Real Estate loans, like Wilmington Trust Corporation (NYSE: WL) and Zions Bancorp (Nasdaq: ZION), will remain under pressure.

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