SOURCE: Paragon Financial Limited

Paragon Financial Limited

September 14, 2011 13:00 ET

Fundamentals Improve for Huntington Bancshares and Flagstar Bancorp -- Shares Fail to Respond

The Paragon Report Provides Equity Research on Huntington Bancshares & Flagstar Bancorp

NEW YORK, NY--(Marketwire - Sep 14, 2011) - The Paragon Report examines investing opportunities in the Regional Banking Sector and provides equity research on Huntington Bancshares, Inc. (NASDAQ: HBAN) and Flagstar Bancorp Inc. (NYSE: FBC). Access to the full company reports can be found at:

While regional banking stocks have been exceptionally volatile of late, companies in the sector have posted strong earnings over the past several quarters thanks to improving credit which allows them to release loan loss provisions to earnings. The Federal Deposit Insurance Corporation (FDIC) explains that banks are posting stronger profits despite weak revenues due to stronger balance sheets and better capital positions. The FDIC said the banking institutions it insures recorded $28.8 billion in net income over the April-June period, up 38 percent year-on-year. The increase marked the eighth straight quarter in which earnings moved in a positive direction, although revenue fell for the second quarter in a row.

Theoretically, the low interest rate environment - which the Federal Reserve has insisted will remain intact until at least 2013 - is intended to encourage the debt appetites of businesses and consumers. However, loan growth continues to lag in the regional banking space.

The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on the regional banking sector register with us free at and get exclusive access to our numerous stock reports and industry newsletters.

Huntington Bancshares showed improving financial results this summer. Second quarter net charge-offs were down 41% sequentially and 65% year over year at $97.5 million. Huntington also declared an increase in its quarterly dividend to 4 cents per share from 1 cent paid in the prior quarter.

Flagstar Bancorp posted a second-quarter loss of $78.9 million, or $0.14 per share. Flagstar has begun to focus its growth strategy on its two major markets in the Midwest and the Northeast. As a result, the company recently sold 27 of its Atlanta-area branches to PNC Financial for about $42 million.

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