Who knows why the Treasury gives our money to some banks and not to others. That comes to mind when considering that we just gave $18 billion to 10 regional banks -- three of which are unprofitable. Why does this matter? Because giving taxpayer money to an unprofitable bank could be as good as flushing it away. I guess Treasury figures it can always get more where that came from, so why not?

Here are the lucky winners of the government bailout lottery that earned a profit and their pre-market stock price change:

• SunTrust (NYSE: STI): $540 million -4.6%
• Capital One Financial Corp. (NYSE: COF): $374 million -2.3%
• Northern Trust (NASDAQ: NTRS): $214 million -2.1%
• Regions Financial (NYSE: RF): $206 million -0.8%
• Huntington Bancshares (NASDAQ: HBAN): $115 million +6.1%
• Valley National Bancorp (NYSE: VLY): $41 million 0%
• City National (NYSE: CYN): $16.6 million 0%

And here are the three that lost money but still got taxpayer capital -- the amount of their latest loss is in parentheses:

I have been concerned about the strength of the banks insured by the FDIC. One commenter asked whether there were any good banks. To that end, I have identified four that might be among the more solid. I did this by screening for regional banks with profit margins over 30%, a stock market capitalizations above $500 million, and a recent improvement in operating performance accompanied by a rise in stock price.

Here are four to consider. The list below includes their name, location, and (net profit margin):

• City Holdings (NASDAQ: CHCO) Charleston, WV (33.7%)
• First Midwest Bankcorp (NASDAQ: FMBI) Itasca, IL (32.6%)
• Valley National (NYSE: VLY) Wayne, NJ (34.4%)
• Prosperity Bancshares (NASDAQ: PRSP) Houston, TX (35.0%)

If you're nervous about where your money is currently deposited, these four might be worth considering. But before you move your money, it would be worth reading their most recent annual reports and quarterly financial statements. Red flags to watch out for include negative cash flow; rising charge-offs and loan loss reserves, and lawsuits.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

Although Doug Hughes, Bill Martin and Charles Mizrahi each take differing approaches to stock selection, their latest buys all share several elements. First, while operating in diverse markets, Hawaii, Boston and New York – all three are regional banks.

In addition, all three advisors see their banking bets as value-oriented positions with solid, long-term fundamentals. All three are also buyback and/or takeover plays.

Bill Martin, editor of FindProfit newsletter recommends Valley National Bancorp (NYSE: VLY), which he notes is based in the prime New York City metropolitan banking market.

He states, "VLY has seen its bottom line pressured, primarily due to the flat yield curve. However, there have been no credit issues at very conservatively run VLY, and we don't expect any to develop."

Looking forward, he says, we continue to believe that margins are 'as bad as they will get' for many banks, at least,he notes, for conservative banks without credit challenges such as Valley.

According to Martin, "This means that VLY's bottom-line results should bottom this year and start to improve in 2008."

Meanwhile, he speculatives, "We believe that VLY continues to be a takeout target, as the bank's footprint and under-leveraged balance sheet remains extremely attractive." Further, he states, "With outright ownership of more than 90 buildings in the NYC area, we believe its book value is materially understated."