< The 2014 All-America Research TeamKenneth ZerbeMorgan StanleyFirst-place appearances: 0

Total appearances: 5

Team debut: 2009Although he drops to No. 3 after two years in second place, Kenneth Zerbe wins plaudits for “providing comprehensive, expert coverage of all the midcap banks,” in the words of one investor. The Morgan Stanley researcher observes that markets are pricing in a higher-interest-rate environment, which he considers a generally positive development for the sector. His modeling indicates that the benchmark federal funds rate will rise in early 2016, but the sector’s above-average valuations imply that investors expect that to happen sooner. In addition, loan growth, especially in commercial and industrial markets, remains robust and continues to surprise to the upside, he notes. Zerbe’s choices for names that he believes will “meaningfully outperform” over the next year include BankUnited, a Miami Lakes, Florida–based regional bank whose long-term earnings-per-share growth potential he deems underappreciated. With new loans increasing at a rate of about $1 billion per quarter, BankUnited is gaining market share in both Florida and New York, and the analyst expects that to continue. New York’ Signature Bank, which he dubs “one of the few organic growth stories in the midcap bank space,” is also a favorite, as is Zions Bancorp. of Salt Lake City. Zerbe anticipates that Zions is well positioned to deliver multiples expansion because it is “highly asset sensitive and operates in a favorable geographic footprint that will provide long-term growth opportunities.”