Kevin Merritt, Wedbush Securities research director, discusses the firm’s top bank picks, opportunities in beaten-down names, and the impact of AI on various industries. He highlights Palantir Technologies and Accenture’s potential in the AI space, while also focusing on the regional banking sector’s recovery and opportunities in retail favorites like Starbucks, Nike, and Celsius.
Republic First Bancorp, a troubled Philadelphia-based regional bank, has been seized by Pennsylvania regulators, marking the first regional banking failure this year. The seizure comes amid speculation of a potential failure and after the bank had looked for a potential buyer. Despite its relatively small size compared to high-profile collapses in 2023, the bank’s seizure highlights ongoing concerns about the stability of regional banks. Fulton Bank has agreed to take over Republic First’s branches, which will reopen under the Fulton Bank name, with the Pennsylvania-based bank assuming substantially all of Republic First’s deposits and assets.
TrustCo Bank Corp NY (NASDAQ: TRST) reported solid Q1 results despite the challenging economic environment. Loan activity remained strong, revenue surpassed consensus, and asset quality metrics were solid. With the dividend yield approaching 5.5% and a valuation below book value, analysts consider TRST a Buy.
