Tuesday, June 29, 2010

The Bank Survival Formula

3 FDIC Acquisitions And Strong West Coast Chinese Banking Franchise Makes East West Bancorp (EWBC) A Stock Winner In The Regional Banking Sector

www.twst.com: Mary Lisanti Interview Excerpt

WST: Were you seeing some opportunities in areas that you wouldn't have found a year ago? You mentioned financial.

Ms. Lisanti: Yes, financial sector is one for sure. There are two things going on with financials that we find interesting. One is that the small bank consolidation has begun. Those companies that are able to purchase companies from the FDIC and consolidate assets are getting fabulous margins, prices that you will never see again for generations. As we consolidate the country from 1,200 banks to 600 banks, there are going to be a lot of winners and a lot of losers and the consolidators are going to really benefit. You look at a company like East West Bancorp (EWBC). They've made three acquisitions out of the FDIC, and I do not believe they are finished making acquisitions of this type. They have a very strong franchise in Chinese banking on the West Coast and I think that will continue to grow.

Mary Lisanti is a 30-year veteran of small cap growth research and investing. She is the Founder, President and Chief Investment Officer and manages the firms' only product; a small cap growth strategy.