|
Biz Links Current Issue Q3-02 Index Q2-02 Index Q1-02 Index Q4-01 Index Q3-01 Index Q2-01 Index Q1-01 Index Prior Financial Services Updates April 2005 March 2005 Feb 2005 Jan 2005 Dec 2004 Nov 2004 Oct 2004 Sept 2004 August 2004 July 2004 June 2004 May 2004 Feb 2004 Jan 2004 Dec 2003 Nov 2003 Oct 2003 |
NOTE: Please confirm through your own research any numbers on which you are to make a buy, sell or hold decision. The page is ment to be a supliment for those already getting monthly sector updates from their broker. It is the goal of this page to provide more timely data - and perhaps cover a wider array of stocks and different valuation metrics. Data entry errors sporadically happen. Monthly Sector Summary During a flat May [where the monthly price changes were up 0.63%], the year-to-date sector price performance rose to a loss of 5.59% from April's year-to-date loss of 6.13%. 05 EPS growth estimates ended April with a fall of to -2.69% vs April's fall of -2.27% - primarily cuase by downward expectations for Citigroup. Sector average yields fell 2 basis points to 3.57% from April's 3.59%. The ten year treasury ended the month yielding 4.00% [vs 4.20% on 4-29 - a fall of 20 basis points]. During April, the year-to-date sector price performance rose to a loss of 6.13% from March's loss of 7.30%. 05 EPS growth estimates ended April with a fall of to 2.27% vs March's fall of 2.39%. Yields fell 2 basis points to 3.59% from March's 3.61%. The ten year treasury ended the month at 4.20% [vs 4.50% on 3-31 - a fall of 30 basis points] after reaching a low of 4.17%. Over the last two months, this sector has gone from a March ending spread to the ten year treasury of an 89 basis point premium to the May ending spread of 43 basis point premium. Bank Stocks Appealing vs 10-year Note Greg Morcroft, MarketWatch 5-27-05 Investors should seriously consider adding bank stocks to their portfolios as the spread between the dividend yield on the sector's largest 50 issues and the 10-year U.S. Treasury note is more than a full percentage point below historic levels, Piper Jaffray analysts say. "In our assessment, bank stocks are becoming exceptionally attractive when viewed against the U.S. Treasury market, particularly when the stability of cash income and earnings growth is considered," Piper's analysts wrote. "In fact," they said, "we found that the spread between the 10-year U.S. Treasury yield and the dividend yield of the top 50 banks is currently only 1.16%, versus an average of 3.46% during the last 19 years." The analysts say they expect the average yield among the nation's top 10 banks, excluding Bank of New York, to near 3.93% over the next 6 to 9 months, which would put their yield a mere 0.15% shy of the current 10-year Treasury yield. They said as well that the highest yielding bank stocks are likely to remain U.S. Bancorp, Piper Jaffray's former parent, and National City. They added that they expect dividend increases at Bank of America and Wachovia. "Under a scenario where Bank of America raises the common stock dividend by 10% in the third week of June, the annualized yield increases to 4.25%, compared to 4.08% on the U.S. Treasury currently," they noted. As for Wachovia, they said the company may well boost its dividend 10% or more by the third quarter of this year, which would put the yield at 3.9%. Angling For North Fork? Gene Marcial, BusinessWeek 5-20-05 North Fork Bancorp (NFB) has caught the eye of Jacqueline Reeves, managing director at investment firm Ryan Beck. She ranks the bank holding company, with 355 branches in New York, New Jersey, and Connecticut, as "one of the best in profitability and productivity" -- and an attractive buyout target. She says NFB fits the profile of a "consolidation candidate." It operates in markets "with alluring demographics and growth characteristics." NFB, with assets of $60 billion, has the financial flexibility bigger banks pine for, she adds. It has been paying down debt, and in the first quarter, loans soared 18%, deposits 20%, and demand deposits 22% -- "very solid numbers," says Reeves. Also, gains on mortgage loan sales soared 99%, to $105 million. Reeves says a giant rival such as Wachovia seeking a foothold in New York State would be drawn to NFB, with its 4.6% market share on deposits of $30 billion. Wachovia does not have much New York presence but has 10.3% in New Jersey -- second only to Bank of America's 17%. Gary Townsend of securities outfit Friedman, Billings, Ramsey says he's upbeat on NFB, now at 27, for its fast growth, profitability, and top-notch management. He sees earnings of $2.27 a share in 2005 and $2.66 in 2006, vs. 2004's $1.81. His 12-month price target: 36.00. NFB hasn't indicated it is for sale, but it might well be -- after "a couple more acquisitions of its own," says Thomas Monaco of Moors & Cabot, who rates it a buy. NFB CEO John Kanas wouldn't comment on the buyout talk but says "we're continuing to build value for our shareholders." Wachovia declined comment. Banks Urged to Seek More Retail Customers Jonathan Stempel, Reuters 5-19-05 Big banks need to do a better job attracting retail customers and selling them multiple products, as lending growth slows amid increased competition and rising interest rates, consultants said. There had been a tremendous amount of traffic into branches with low interest rates for mortgages, loans and other products," said John Durocher, a partner for branch strategies at Accenture, the consulting firm. "Now rates are moving in the opposite direction, and banks have to decide how to maintain this foot traffic," he said. "Banks are trying to get much more intelligence about what they can offer that's of value to the customer." Toni Langlinais, an Accenture managing partner in financial services, said customers care mainly about price, service and speed, in that order. The need to attract retail customers comes as rate changes cause lending, or net interest, margins to shrink, crimping banks' ability to increase profit. Short-term interest rates have risen 2 percentage points since June, while long-term rates are little changed. This compresses margins, because banks have to pay more on deposits, and yet can't charge more on loans. Several banks have projected slowing consumer loan growth. Wachovia, for one, expects mid- to- high- single-digit growth this year. It grew 36 percent in the year ending March 31, partly because of an acquisition. On top of this, several banks have said loan credit quality may have peaked, though Standard & Poor's this week said "asset quality remains stellar." Bank of America and U.S. Bancorp, among others, have stressed they will not chase after riskier loans to help improve profit. "If that lowers our (growth) rates versus our peers, then that's the way it's going to be," U.S. Bancorp Chief Financial Officer David Moffett said last month. But large U.S. banks have adopted a variety of strategies to attract retail customers. U.S. Bancorp has placed thousands of automated teller machines with Safeway, Walgreen and other retailers so customers can bank where they shop. Washington Mutual and New Jersey's Commerce Bancorp (CBH) , among others, rely more on "de novo" growth, opening dozens of branches a year. In contrast, Wells Fargo relies heavily on the sale of multiple products to each customer, known as cross-selling. Its average retail customer uses 4.6 products. "If you go into any Wells Fargo branch and ask a teller what their strategy is, they'll say it in a few words," said Langlinais. "It's understood from the top to people who have (direct) contact with the customer." Durocher said "a number of institutions are catching up and saying, what we need to do is go out and hire 'retailers,' rather than people who can (just) perform transactions." Convenience, of course, is still important. For example, J.P. Morgan Chase on Thursday introduced a credit card that consumers need only wave past a sensor, rather than slide through a machine, to make payments. Chains such as 7-Eleven have signed on to use it. "The concern is the ability to break away from competitors during a period of constrained growth," said Langlinais. "That's the period we're moving into now." Merrill Lynch Downgrades Regional Banks AP 5-06-05 North Fork and Regions Financial shares fell Friday after a major brokerage downgraded the regional banks on concerns credit losses will rise with loan loss reserves currently at historic lows. The two large-cap regional financial firms might see profits fall in the upcoming quarters due to the flattening yield curve as the Fed pushed up short-term rates while long-term rates hold steady or decline, according to a report from Merrill Lynch. Competition is also expected to make it harder to grow both deposits and new commercial loans during the period. Regional banks have recently been considered to be a safe haven for investors worried about some of the scandals which plagued bigger financial institutions such as Citigroup and JPMorgan Chase. The Merrill report that contained the two downgrades sounded a cautious tone for the broader banking sector on worries weak credit could spread, with the Philadelphia Bank Index -- which tracks both money center and regional banks -- falling 1 percent to 97.79 points. "Competition is heating up," said Merrill Lynch analyst Edward R. Najarian, in a research note. "Bankers are indicating that price competition for new commercial loans is ruthless, and we expect price competition for deposits to increase over the next several quarters." North Fork's rating was cut to "Neutral" from "Buy," with Merrill citing the bank's exposure to the flattening yield-curve environment. The Melville, N.Y.-based bank's shares fell 66 cents, or 2.3 percent, to $27.89 in afternoon trading on the New York Stock Exchange. Regions was cut to "Sell" from "Neutral" due to what Merrill believes is an overvalued stock price. Merrill said Regions' shares are now trading at a 12 percent premium to the median large regional bank. Additionally, Merrill cited Regions' "disappointing" expense controls and weak loan and deposit growth for the downgrade. Regions shares fell 49 cents to $33.45 on the NYSE. For the sector at large, Najarian added that valuations were not compelling as median large regional banks trade about 13 times estimated 2004 earnings -- slightly higher than the 10-year average. The brokerage said that at this time it will recommend only large regional banks in which it sees attractive relative value, strong cash flows that can fund share buybacks and high dividend yields. Merrill also cut the price targets of Wells Fargo to $66 from $71, Bank of America to $50 from $54, U.S. Bancorp to $32 from $35, and Wachovia to $57 from $62. Shares of all four companies fell less than 1 percent in afternoon trading. From Jonathan Stempel, Reuters 5-06:Merrill analyst Brian Bedell trimmed his 2005 profit estimates for trust banks, including Bank of New York, Mellon Financial, Northern Trust Corp. (NTRS) and State Street (STT). He cited a weaker capital markets outlook that might hurt foreign exchange revenue, equity trading volume and investment management fees. Bedell downgraded Bank of New York to "neutral" from "buy." He said the bank, which generates much of its business from securities processing rather than branch banking, may see slowing growth in profit per share as trading volume, especially in retail equities, declines. The analyst also said he expects Bank of New York to spend more on its retail bank and compete more aggressively for deposits, possibly hurting margins. He said it is "unlikely" that Bank of New York will sell the retail bank, which recently operated 341 New York area branches, in the intermediate term. Rapid Expansion Lead to Slide for Fifth Third Lisa Cornwell, AP via Ft Worth Star-Telegram 5-22-05 Rapid expansion helped make Fifth Third Bancorp a Wall Street darling for years, with booming earnings and a stock price to match. Now growth and subsequent regulatory problems have contributed to an 8% slide in earnings in 2004 and 6% in Q1-05. And shares of the nation's 10th largest banking company have fallen nearly 40% since peaking in 2002. "Fifth Third has been very aggressive through the years and has managed acquisitions very efficiently," said Rick Wayman, an analyst with Researchstock.com. "But it has consistently produced such great earnings that the law of large numbers is now catching up, and Fifth Third is starting to show some cracks in its armor." Fifth Third has been historically one of the best performing banking companies in the country. Its rapid expansion into Michigan, Illinois and south Florida has helped create a company with assets of $103 billion and operations in nine states. Analysts say the company remains in solid shape but has a challenge in regaining momentum. Even top executives have acknowledged unhappiness with the stock price. "We recognize that when stock performance isn't there, it's not a great deal of fun for anyone, but we think we are doing the right things to grow our business and earnings," said Brad Adams, Fifth Third vice president and investor relations officer. "Ultimately, the banking business is pretty simple," he said. "It's about adding customers everyday. It's about bringing in deposits." Fifth Third's problems began to appear in September 2002 when the company said it would take a $54 million writeoff against third-quarter profits because of accounting errors in investments in mortgage-based securities. No customer accounts or loans to customers were involved in the losses, Fifth Third said. Two months later, the company announced that it was cooperating with a SEC review of its accounting procedures. State and federal regulators ordered a halt on acquisitions - the process the company had used to grow. Fifth Third later agreed to improve accounting procedures. The moratorium on was lifted last year. "They lost some momentum during that time and became more focused on internal controls, which was the right thing to do," said Gary Townsend, senior analyst with Friedman, Billings, Ramsey & Co. "But they lost some traction compared with their competitors." Fifth Third has since acquired Franklin Financial Corp. of Tennessee and purchased First National Bank Bankshares of Florida for $1.5 billion. Still, the company is having trouble getting back on track. For the first quarter ended March 31 profits fell 6% to $405 million and earnings of 72 cents a share missed analysts' estimates by a penny. For 2004, the company made $1.53 billion, down from $1.67 billion in 2003. Analysts surveyed by Thomson First Call have projected earnings of $3.08 per share for the year, but that may prove difficult to reach. Peter Winter, banking analyst with Harris Nesbitt, said the company has had good loan growth, but margins have been weaker than expected because of competition on deposits and loan pricing. Fifth Third has consistently outperformed the major exchange-traded banks in the United States. A $1,000 investment in April 1975 when the stock began trading was worth $461,208 when the stock peaked at $69.70 in 2002, according to the company. The value of that same investment fell to $389,933 by Dec. 31, and the stock hit a multiyear low of $40.24 last month. Some analysts suggest Fifth Third may hold off on acquisitions for now because of the weaker stock price, but company officials say long-term growth won't be sacrificed just to meet an earnings forecast. "If an acquisition opportunity presents itself, we would look at it to see if there would be a good return on investment," Adams said. "But we are focusing on areas where we are trying to build our presence." That includes attracting more business in places such as Chicago where Fifth Third now has 40 branches following its acquisition of Old Kent Financial Corp., of Grand Rapids, Mich., in 2001. Analysts are dubious. "Competitors have done a better job there in terms of retaining clients," and smaller banks often can offer more personalized service, Winter said. Fifth Third has traditionally attracted customers with lower rates on loans and higher rates on deposits rather than with service, Townsend said. "What may have worked well for Fifth Third in Ohio and Indiana may not work as well in competitive markets like Chicago and Florida," he said. "The question is whether Fifth Third can continue the same approach to markets and customers that it has in the past." Adams noted that while Fifth Third has had a tough time of late, earnings of $2.68 per share in 2004 still were up 75% from 1999. He said the key to improving Fifth Third's profits and revenue - and ultimately its stock price - varies by market. In some areas, it requires better locations; in others, stronger salespeople, Adams said. "Banking always has been a relationship business," he said. One shareholder from suburban Cincinnati said he prefers Fifth Third focus for now on current operations rather than pursue acquisitions. "A lot of outstanding people have left," said George Rehfelt, who recently bought 100 shares to push his total to about 600 shares. "New players will have to step up, and it will be up to the board to replace them if they don't perform." Credit-Card Firms Bank on New Ways To Counter Fraud David Enrich, Dow Jones Newswires 5-24-05 Credit cards are going high-tech in an effort to combat fraud, but some banks and issuers fear the changes could make it harder for consumers to reach for the plastic. The next generation of credit and debit cards is squarely aimed at fighting theft and fraud. These cards will run on paper-thin batteries and feature liquid-crystal-display screens that frequently generate fresh card numbers. The theory is that oft-changing card numbers will be useless to thieves who intercept Internet transactions or get access to databases of card numbers. A number of major banks and data-security firms have designed prototypes of the new dynamic-number cards, but it isn't clear when they will be available to consumers. Some industry officials expect to start testing the cards with consumers later in 2005, and others say they could be ready for production within a year. Banks -- recognizing that preventing fraud will cut their costs -- are scrambling to incorporate new dynamic-number technology into their cards. U.S. card issuers last year racked up about $788 million in losses from credit-card theft and fraud, according to the Nilson Report, an industry publication. That doesn't include losses stemming from fraudulent online or phone transactions, which are estimated to have run into the billions of dollars. Compared with their peers overseas, U.S. banks and card issuers have been slow to upgrade security. In Europe, computer chips are embedded in many "smart" credit and debit cards, and some banks require customers to use number-generating devices to access bank or credit-card information online. In the U.S., card issuers have balked at those added levels of security. They are expensive, and banks are reluctant to impose inconveniences on American consumers. As a result, there is a premium on high-security but easy-to-use cards that allow consumers "to continue using their standard behavior patterns," said David Watkins, the CEO of QueueCard, one of several firms working with card issuers to develop cards with changing numbers. On some of the new cards, as many as 10 of the 16 digits on the front of the card would appear in a digital screen and would automatically change periodically -- perhaps every 60 seconds. For purchases over the Internet or phone, users would supplement that number with a personal identification number. The system also is designed to enhance the security of in-store transactions. Other cards would require users to punch in a PIN on a touchpad on the card every time they make an online or phone transaction. A screen on the card would then produce a one-time password, which the user would enter along with the credit-card number. Patrick Gauthier, Visa USA's senior vice president of emerging-products development, said card issuers will need to clear a number of "significant hurdles" if the new cards are to win broad consumer acceptance. "Not the least of the complications is to train the consumer on this new method of shopping," he said. Wachovia Considers Credit Cards Rick Rothacker, Knight Ridder 5-28-05 Five years after getting out of credit cards, Wachovia Corp. may be looking to get back in. As part of a massive restructuring in 2000, predecessor First Union Corp. sold its $5.5 billion credit card portfolio to MBNA Corp. Now Wachovia Chairman Ken Thompson says a return could help him add consumer loans and get a bigger foothold in electronic payments. "As I look at the future, I think I would like to be in the card business," Thompson told investors on a Merrill Lynch & Co. conference call Monday. But he added: "I'm not ready to say we've definitely made that decision." Analysts say Wachovia could buy a credit card company or start a portfolio from scratch. The company is unlikely to make it into the industry's top tier, but it could wring new revenue from a customer base that stretches from Connecticut to Texas, they said. "It's a recognition that money is on the table," says David Robertson, publisher of The Nilson Report, a credit card industry newsletter. One hurdle for Wachovia is an ongoing agreement with MBNA to issue co-branded cards for the bank. Customers can apply for a card at one of the bank's branches, but MBNA takes over after that. Thompson said he couldn't comment on the MBNA agreement. But Robertson said the five-year deal runs out this year. Wachovia could try to start a business on its own like Washington Mutual is doing or target issuers such as Providian Financial or Direct Merchants Bank, Robertson said. In a report Wednesday, analyst Dick Bove of Punk, Ziegel & Co. said it would be tough for Wachovia to start a credit card business. He said a better move would be buying Discover, which is being spun off by Morgan Stanley, or a card company such as MBNA or Capital One Financial Corp. "Our favorite target would be MBNA due to Wachovia's current contractual relations there," wrote Bove, who does not own Wachovia stock but whose firm seeks business with the company. In 2004, JPMorgan Chase was the industry leader with $134.7 billion in outstanding credit card balances, according to The Nilson Report, followed by Citigroup ($115.9 billion) and MBNA ($82.1 billion). Bank of America was No. 5, with $61 billion in credit card loans. Besides giving Wachovia new loans, re-entering the credit card business would give Wachovia a "safety blanket" against changes in the electronic payments business, Thompson said in the conference call. Payments with debit and credit cards are increasingly important to banks as the use of paper checks slows. In 2004, Wachovia was No.4 among debit card issuers, as its customers spent $20.3 billion with their cards. Bank of America was No. 1 with $66.5 billion in spending. In the conference call, Thompson acknowledged abandoning the credit card business just five years ago, but he said the sale was necessary at a time the company was working to pad its balance sheet and improve earnings. "Would we have sold credit card if we hadn't had that pressure?" he asked. "Probably not." Meanwhile, a credit card acquisition may not be the only deal on tap for Wachovia, the nation's No.4 bank by assets. Analysts speculate the company could buy another bank as early as this year as it looks to expand its geographic reach. Thompson has said he is open to more bank deals, but has indicated he would wait until after completing the integration with SouthTrust Corp., which he bought last year. The final account conversion is scheduled for October or November. "Bottom line, look for Wachovia to re-enter the acquisition market soon," Bove said. Buffet Talks Fortune 5-03-05 During the annual shareholder meeting of Berkshire Hathaway, chairman Warren Buffett said he wasn’t enthusiastic right now about putting more money into stocks Berkshire already owns. But speaking of three of the company’s big holdings - American Express, Wells Fargo, and Moody's - Buffett said, “We are more likely to buy more later on than to sell.” May Ratings Changes On 5-23 Banc of America downgraded NFB from Buy to Neutral. On 5-23 Marquis Investment Research initiated USB at Hold. On 5-12 Marquis Investment Research initiated WB at Buy. On 5-16 Marquis Investment Research initiated WFC at Buy. As already mentioned in a seperate article above, on 5-06 Merrill Lynch analyst Edward R. Najarian cut NFB to "Neutral" from "Buy" citing the bank's exposure to the flattening yield-curve environment - and cut RF to "Sell" from "Neutral" due to what Merrill believes is an overvalued stock price. Merrill analyst Brian Bedell downgraded Bank of New York to "neutral" from "buy." He said the bank, which generates much of its business from securities processing rather than branch banking, may see slowing growth in profit per share as trading volume, especially in retail equities, declines. The analyst also said he expects Bank of New York to spend more on its retail bank and compete more aggressively for deposits, possibly hurting margins. On 4-8 Keefe Bruyette initiated C at Outperform. On 4-21 Prudential Downgraded JPM from Neutral to Underweight. On 4-18 Banc of America Sec Upgraded JPM from Neutral to Buy. On 4-19 Keefe Bruyette Upgrade KEY from Underperform to Mkt Perform. On 4-22 Merrill Lynch Upgraded NCC from Sell to Neutral. On 4-11 Ryan, Beck Initiated NCC at Outperform. On 4-21 Prudential Upgraded PNC from Underweight to Neutral. On 4 FTN Midwest initiated WFC at Buy. Monthly Mid-Cap Bank Sector Summary During May, the year-to-date sector prices rose to a loss of 5.98% [vs April's loss of 8.85%]. Year-to-date 05 EPS growth estimates fell to -5.00% [vs April's -4.61%]. Yields ended at 3.56% [vs April's 3.67% - a fall of 11 basis points. The ten year treasury ended the month at 4.00% [vs 4.20% on 4-29 - a fall of 20 basis points]. During April, the year-to-date sector prices fell to a loss of 8.85% [vs March's loss of 7.85%]. Year-to-date 05 EPS growth estimates fell to -4.61% [vs March's -2.99%]. Yields ended at 3.67% [vs March's 3.58% - a rise of 9 basis points. The ten year treasury ended the month at 4.20% [vs 4.50% on 3-31 - a fall of 30 basis points] after reaching a low of 4.17%. Compass Update Business Wire 5-17-05 Compass has increased its annual dividend to shareholders for 24 consecutive years and generated increased earnings per share in each of the last 17 years. Over the past 10 years, Compass earnings per share and annual dividend per share have grown at an annual compound rate of 11 percent. Compass holds Mergent's "Dividend Achiever" designation for increasing dividends for at least 10 consecutive years. Compass is also a member of the Dow Jones Select Dividend Index, a dividend-based index of 100 companies selected for their high yield and track record of increased dividends. Earlier this year, Compass was named for the sixth consecutive year to Forbes "Platinum 400" list as one of the best big companies in America. In addition, Compass is an eight-time member of the Keefe, Bruyette & Woods, Inc., "Honor Roll" for having increased earnings per share for 10 consecutive years. Colonial BancGroup Completes FFLC Acquisition Business Wire 5-19-05 Colonial BancGroup (CNB) CEO Robert E. Lowder announced that the Company completed its acquisition of FFLC Bancorp and its subsidiary, First Federal Savings Bank of Lake County, on May 18th. This acquisition brings Colonial's Florida franchise to $7.8 billion in deposits and $10.8 billion in assets, or 58% of the Company's total deposits and 52% of its total assets, respectively, in the Sunshine State. This transaction is expected to make Colonial the fifth largest commercial bank in Florida. Lake County, part of the Orlando MSA, is projected to be the second fastest growing large county (population over 200,000) in Florida over the next five years. This transaction should solidify Colonial's position as the fourth largest bank in the Orlando MSA with approximately 7.5% deposit market share. FNB the First in Region to Offer Remote Deposit Service PRNewswire 5-04-05 Today, with the introduction of First Desktop Banker, First National Bank of Pennsylvania became the first bank in the Cleveland Federal Reserve District, which includes western Pennsylvania and eastern Ohio, to offer its commercial customers a new remote deposit service that promises to revolutionize the way they manage their money. First Desktop Banker makes it possible for companies to convert any personal or business checks they receive from customers into digital files and deposit them electronically. This means companies will be able to maximize earnings potential, and reduce the costs of record keeping. Normally companies collect all checks received during a business day, prepare deposit forms, and deliver them to the bank for processing. Depending on where the checks are from, it can take several days for checks to clear and collected funds deposited into a company's account. With First Desktop Banker, companies use a lightweight desktop device provided by First National Bank. The device is connected to a phone line and personal computer that allows access to the Internet. It allows users to deposit checks -- both commercial and personal -- directly into their accounts without leaving the office. The device takes an image of the front and back of the check, including the endorsement, reads the check amount, ensures that deposits are balanced, and transmits the data to the bank. Fulton Financial Announces Accelerated Stock Repurchase PRNewswire 5-05-05 Fulton Financial (FULT) today announced that it repurchased 3,449,200 shares of its outstanding common stock in an accelerated share repurchase program on May 4, 2005. The shares were repurchased from Morgan Stanley & Co. Incorporated under an accelerated share repurchase program for a total cost of approximately $73.6 million, or $21.33 per share. Hudson United to Release Tax Reserves, Boosting 2Q Profit, Following IRS Ruling AP 5-20-05 Bank holding company Hudson United Bancorp on Friday said its second-quarter results would be boosted by the release of tax reserves, after the Internal Revenue Service said the company would have to pay back taxes in an amount below what the company had reserved for. Under a settlement signed with the IRS, Hudson said it would pay $12.6 million in additional income taxes for the years 1998 through 2002, and that its tax reserves for the period exceeded the amount. Hudson said the release of the tax reserves would increase its second-quarter earnings by about $12 million, or 27 cents per share. May Ratings Changes On 5-05 Robert W. Baird Upgraded ASBC from Neutral to Outperform. On 5-10 Banc of America Initiated CBSS at Neutral. On 5-03 Susquehanna Financial Initiated CNB at 'Net Positive'. On 5-23 Lehman Brothers Downgraded HBAN to "underweight" from "equal weight," saying the stock has been trading above $24, where the firm believes it is fairly valued. On 5-05 AG Edwards Downgraded SNV from Buy to Hold. On 5-10 Banc of America Initiated TCB at Neutral. On 5-02 Legg Mason Upgraded SUSQ from Sell to Hold. From last month: On 4-21 Keefe Bruyette Upgraded BSX from Underperform to Mkt Perform. On 4-25 Hibernia Southcoast Capital Upgraded CNB from Sell to Hold. On 4-22 Keefe Bruyette Upgraded FHN from Underperform to Mkt Perform. On 4-22 KeyBanc Capital Mkts / McDonald Downgraded FMER from Buy to Hold. On 4-15 Friedman Billings Downgraded HU from Mkt Perform to Underperform. On 4-15 Moors & Cabot downgraded HU from Hold to Sell. On 4-26 Ryan, Beck Upgraded HBAN from Underperform to Mkt Perform. On 4-26 Smith Barney Citigroup Downgraded TCB from Buy to Hold. Home Page Factoids Previous Update |