A few banks offer strong potential upside amid a climate of rising interest rates, Mendon Capital Advisors President Anton Schutz said Monday.
"I think the market's been a little early in terms of expecting results immediately," he said. "I've been on four separate road trips, and what's very clear is the security portfolios of these banks are going to take a little hit."
On CNBC's "Fast Money," Schutz added that over the longer term regional banks would likely see strong earnings from lending, although mortgages could experience headwinds and refinancing has calmed down.
(Read More: 2 Sectors to Play Amid Rising Rates)
Margins not going to change dramatically until LIBOR moves
"Earnings near-term, I think, are going to be suspect," he said. "They're still really cheap to where they were long-term, and I still see them as great return-to-capital stories through dividends and buybacks."