The piece is a virtual hit list of banks that need to refinance: Bank of America (BAC), Citigroup (C), Citizens Republic Bancorp (CRBC), Colonial Bancgroup (CNB), Comerica (CMA), East West Bancorp (EWBC), First Horizon (FHN), Huntingon Bancshares (HBAN), KeyCorp (KEY), Marshall & Ilsley (MI) (conviction sell!!) National City (NCC), Popular Inc. (BPOP) and South Financial (TSFG).

Buy - Price 5.75 on May 21
by Sandler O'Neill

Upgrading from Hold...primarily on valuation...[yet to] reflect a more aggressive assumption for credit costs over the next several quarters...we are lowering our '08 EPS estimate by 38 cents (from a loss per share of 27 cents to a loss of 65 cents)...and now [foresee] $350 million of credit costs over the next seven quarters [versus] prior $240 million. Target: 7.25. Market cap: $417 million.

Barrow Hanley stated that it is considering withholding its support for re-election of the company's slate of directors at the 2008 annual meeting.

The South Financial Group recently announced a $100 million dollar buyback.

The South Financial Group, Inc. operates as the holding company for Carolina First Bank and Mercantile Bank that provide a range of financial products and services to small and middle market businesses, and consumers in South Carolina, Florida, and North Carolina.

The stock has a PE of 16.

From Barron's 7-2-07:

Hold - Price 23.21 on June 28
by Sandler O'Neill
"Reducing our '07 EPS estimate by two cents to $1.35 and '08 EPS estimate by five cents to $1.56...We expect TSFG to report 2Q07 operating EPS of 33 cents, up from 30 cents in 1Q07 and down 15.4%, year-over-year...Target [cut] by 50 cents to $24.50, owing mainly to lower peer valuations."

holding