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Five analysts and top management from twenty-five sector firms examine the eastern regional banks sector in this special 127-page Eastern Regional Banks issue from The Wall Street Transcript, available at (212/952-7433) or http://www.twst.com/info/info481.htm.

TWST: Chris, how have the Eastern bank stocks performed in 2001?

Mr. Marinac: For the most part it was a mixed bag, whether you look at the BKX Index or the broader indices. Certainly banks outperformed the S&P 500 and other indices. But there was a real dichotomy. Some of the stocks that had interest rate sensitivity, particularly those in the “asset-sensitive” camp, did not do as well. They seem to be doing a bit of catch-up. The other issue is that the trust-oriented banks vastly underperformed for 2001. But that is basically a full year comment. If you look at the last two to three months, the trust names have done much better vis-à-vis the market.

TWST: Chris, what issues have shaped the environment for regional banks in 2001? Have there been any issues specific to the Eastern banks?

Mr. Marinac: I wouldn’t necessarily say that. I think that some of the same issues that we were covering before — interest rate changes, credit quality and so on — clearly are still the current issues. Debate still exists over whether these companies can become even more efficient than in the last several years and if they can grow revenues at a faster clip. I think that is an issue faced by all banks around the country, not just the Eastern banks.

TWST: Chris, what are your top stock picks and what is your outlook for 2002?

Mr. Marinac: First, I think Nancy is 100% on the money with her perceptions on SunTrust (NYSE:STI), particularly on the changes, what’s happened internally, since the Wachovia merger fallout from the summer of 2001, for whatever that’s worth. My final idea is a sleeper candidate, located in the Southeast, which some probably forgot about, NetBank (Nasdaq:NTBK). NTBK is a name that most people may have written off with the dot-com fallout. NetBank is in the process of buying a mortgage company called Resource Bancshares Mortgage (Nasdaq:RBMG) that is actually going to create a new niche and also enhance management. The new CEO of NetBank is Doug Freeman, who, as Nancy and Gerard may recall, used to be part of Barnett Banks’ consumer finance subsidiary called EquiCredit in the 1990s. EquiCredit became part of the NationsBank, then BankAmerica combinations, and in fall 2001 was spun out of BofA and sold back to Doug Freeman and his team at Resource Bancshares Mortgage. Now, NetBank is buying Resource, if I have not lost you with all the changes. The point is that I think Freeman is a very credible fellow. He now has a company that can generate assets, but needs a funding source. NetBank has actually had some pretty good success at raising deposits through the Internet, despite not having a branch network. They’ve been one of the exceptions to the general agreement in our industry that the brick-and-mortar combination of the Internet and bank branches is the preferred route. NetBank has certainly been able to survive as a result of core checking account focus, some first-mover customers who were retained, and it also had the luxury of a heavy capital base. So I think it’s a stock worthy of a look as a high growth vehicle. The stock has been acting better recently, and we would encourage taking a look, particularly with this new marriage of Doug Freeman and his team with NetBank.

This special issue includes:

1) Eastern Regional Banks - In an in-depth (13,500 words) Analyst Roundtable, Nancy A. Bush, Managing Director at Ryan Beck & Co., Gerard S. Cassidy, Managing Director of Equity Research at RBC Capital Markets and Christopher Marinac, Managing Director at SunTrust Robinson Humphrey, examine the outlook for the sector including stock performance in 2001, regulatory outlook and share specific stock recommendations.

2) Super-Regional Banks - In an in-depth (4,100 words) Analyst Interview, Jennifer A. Thompson, Analyst at Putnam Lovell Securities, Inc., examines the outlook for the sector including and shares specific stock recommendations.

3) Eastern Banks - In an in-depth (3,100 words) Analyst Interview, Jacqueline Reeves, Managing Director at Putnam Lovell Securities, Inc., examines the outlook for the sector including and shares specific stock recommendations.

4) The TWST confidential Off-The-Record survey of management performance of nineteen sector firms asked market insiders about the ability of management teams to create shareholder value.

5) CEO interviews (average 2,500 words). Top management of twenty-five sector firms examine the outlook for their firm and the sector.