BofA (NYSE:BAC), JPMorgan (NYSE:JPM), PNC Financial (NYSE:PNC) Top Ideas of FBR Capital

After 17 of the 25 major banks reported earnings, FBR Capital says there's little that has gotten them excited or changed their outlook of the industry, adding at this time their top picks are Bank of America (NYSE:BAC), JPMorgan (NYSE:JPM) and PNC Financial (NYSE:PNC).

FBR noted, "With 17 of the top 25 banks by asset size having reported, we have insights into industry trends. Quarterly results felt like baby steps back toward whatever "normal" is, with some loan growth, slowly improving credit, hints about coming capital deployment, and improving profitability, but nothing exciting enough to change our view of the industry's earnings power or timeline to get there. Our main takeaways: (1) loan growth turned positive and outpaced securities growth for the first time in recent history; (2) NIM narrowed for most of the group, but net interest income was still generally good, with NIM compression reflecting marginal investment of excess liquidity at narrower spreads; (3) credit continues to improve, and reserve releases are accelerating a return to "normal"; (4) companies are eager to start deploying capital through dividends, buybacks, and acquisitions; (5) mortgage banking results were expectedly strong but should taper off in 2011. We continue to favor large-cap banks over regional banks, given their valuation and the fact that they have more levers to manage revenue headwinds. Our top ideas include BofA (BAC), JPMorgan (JPM), and PNC Financial (PNC)."

Bank of America was trading at $13.96, down $0.29, or 2.04 percent, as of 2:41 PM EST. JPMorgan was trading at $45.01, down $0.28, or 0.62 percent. PNC Financial was trading at $60.51, down $0.32, or 0.53 percent, as of 2:42 PM EST.