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HBAN & SKYF Completes Merger Press release of 7-02 Huntington Bancshares Incorporated (HBAN) announced that the merger with Sky Financial Group (SKYF), originally announced 12-20-06, was completed on July 1, 2007. Sky Financial shareholders of record as of the close of trading on 6-29-07, will receive 1.098 shares of Huntington common stock, on a tax-free basis, and a taxable cash payment of $3.023 for each share of Sky Financial Group. "This merger positions Huntington as a more formidable competitor in our markets," said Thomas Hoaglin, chairman and chief executive officer. "Our deposit share in Ohio is a strong #3 position, with #1 positions in the Columbus, Toledo, Canton, and Youngstown markets, and a much stronger #5 position in the Cleveland area. We significantly strengthen our presence in Indianapolis to a #3 position, and enter the Western Pennsylvania market with a nice presence. Overall, Huntington will become the 24th largest U.S.-based bank, with assets over $50 billion. ASBC Reports EPS of $0.59 vs. $0.63 in Q2-06 Business Wire 7-19 Associated Banc-Corp earned $75.8 million [$.59 per share] in Q2-07 compared to $73.4 million [$.57 per share] for Q1-07 and $83.5 million [$.63 per share] forQ2-06. ROA in Q2-07 was 1.48% compared to 1.46% in Q1-07 and 1.58% in Q2-06. ROE for Q2-07 was 13.49% compared to 13.35% in Q1-07 and 14.86$ in Q2-06. Book value at the end of Q2-07 was $17.56 compared to $17.20 at the end of Q2-06. Net interest income for Q2-07 was $157.5 million compared to $168.4 million in Q2-06. The net interest margin was 3.53% compared to 3.59% in Q2-06. Total interest-earning assets in Q2-07 were $18.605 billion and earned $324.397 million at an average yield of 6.99% [vs. 6.74% in Q2-06]. Total interest-bearing liabilities in Q2-07 were $15.835 billion and cost $160.198 million at an average yield of 4.06% [vs. 3.12% in Q2-06]. Noninterest income for Q2-07 was $91.5 million compared to 77.2 million in Q2-06. Deposit service charges were up 11%, trust service fees were up 15%, card-based and other fees were up 10% and insurance commissions declined 3%. Total nonperforming assets in Q2-07 were $198.986 million and were 0.95% of total assets, compared to $169.459 million in Q1-07 that were 0.83% of total assets. BBT Reports Income of $0.83 vs. $0.79 in Q2-06 PRNewswire 7-19 BB&T Corporation reported record net income for Q2-07 totaling $458 million, or $.83 per diluted share, compared with $429 million, or $.79 per diluted share, earned during Q2-06. ROA in Q2-07 was 1.47% compared to 1.53% in Q2-06. ROE was 15.18% compared to 15.34% in Q2-06. Book value per share at the end of Q2-07 was $21.97 compared to $21.48 at the end of Q1-07 and $20.79 at the end of Q2-06. Net interest income in Q2-07 was $966 million compared to $917 million in Q2-06. Net yield on earning assets was 3.55% compared to 3.76% in Q2-06. Total earning assets had an average yield of 7.14% compared to 7.17% in Q1-07 and 6.77% in Q2-06. Total interest-bearing liabilities had an average cost of 4.15% in Q2-07 compared to 4.11% in Q1-07 and 3.60% in Q2-06. Total noninterest income increased 12.0% to a record $729 million for the current quarter compared with the same period in 2006. Commissions from BB&T's insurance operations increased 7.0% to a record $229 million in Q2-07 compared with $214 million earned during Q2-06. Investment banking and brokerage operations generated revenues of $89 million in Q2-07, an increase of 12.7% compared to $79 million earned in Q2-06. Service charges on deposit accounts totaled $151 million for Q2-07, an increase of 9.4% compared to $138 million earned in Q2-06. Nonperforming assets as a percentage of total assets, were .33% at June 30 compared to .30% at March 31 and .27% at June 30, 2006. From the Conference Call: Margins continue to be are problem and noninterest incomes continues to be our strength. Insurance commissions continue to be the biggest driver of noninterest income. And there was a 61,000 increase in net transaction accounts that aided the increase in service charges. Some regional banks have backed away from aggressive CD rates - so the competitive environment for deposits is slowly becoming more benign. BBT has a very small exposure to sub-prime loans. BBT's Alt-A's loans [just over $3 billion] continue to perform well. BBT has only 3 NPAs over $5 million. BBT continues to look for more acquisitions, but pricing is an issue. There were two insurance acquisitions in Q2. BBT is looking at non-bank acquisitions. We think we are at the bottom in net interest margins. BBT expects a return to normal with NPAs [50 basis points] and charge-offs [35 to 38 basis points]. BBT expects good loan and deposit growth and for fee income growth looks to continue. BBT opened 14 new branches and closed three in Q2. BBT was asked what percentage of home buyers in their markets have used sub-prime and Alt-A? BBT stated that it was a very small percentage in sub-prime, but there are even a good bit of high net worth individuals that use Alt-A loans. While in other geographies there are a significant percentage of loans that originate with less than 5% down - or are interest only loans, this is not the case with home mortgages at BBT. But if that kind of loan origination goes away, that will adversely affect the total housing market. While sub-prime housing loans are making news, sub-prime auto loans have not been upset. There was a shake-out a few years ago in this category. The large Hispanic market 'drives' the auto sub-prime loan market. CBH Reports Net Income of $0.39 vs. 0.41 in Q2-06 PRNewswire 7-24 Commerce Bancorp reported net income of $76.9 million for Q2-07 [$0.39/share] compared to $79.5 million [$0.41/sahre] for the Q2-06. ROA in Q2-07 was 0.65% compared to 0.68% in Q1-07 ROE in Q2-07 was 10.57% compared to 10.87% in Q1-07. Book value at the end of Q2-07 was $14.55 compared to $12.96 at the end of Q2-06. Net interest income for Q2-07 totaled $342.8 million, a 7% increase over the $318.9 million recorded a year ago. FTE net interest income in Q2-07 was $350.1 million, an increase of $25.1 million or 8% over Q2-06. The net interest margin for Q2-07 decreased slightly to 3.22%, compared to 3.27% for Q1-07, and was down 17 basis points from the 3.39% margin for Q2-06. The year over year compression in net interest margin was primarily caused by the continuing difficult interest rate environment. Total earning assets in Q2-07 were $43.622 billion earnings $664.427 million at an average rate of 6.11% [compared to 5.93% in Q2-06]. Total deposits and interest-bearing liabilities in Q2-07 were $35.129 billion costing $314.283 million at an average yeild of 3.59% [compared to 2.54% in Q2-06]. Non-interest income for Q2-07 increased to $176.6 million from $143.0 million a year ago, a 24% increase. Deposit Charges & Service Fees contributed $116.913 million [66%] to noninterest income in Q2-07; Commerce Banc Insurance $23.084 million [13%]; Capital Markets $8.037 million [4%]; Operating Lease Revenue $4.797 million [3%]; and Loan Brokerage Fees $2.641 million [1%]. Total non-performing assets and loans past due 90 days or more at the end of Q2-07 were $56.880 million [0.31% of total loans] compared to $52.379 million [0.29%] at the end of Q1-07. Net charge-offs were $7.148 million [0.18% of average loans] in Q2-07 compared to $2.030 million [0.06%] in Q2-06. CHZ Reports Core Earnings of $0.47 vs. 0.45 in Q2-06 Business Wire 7-19 Chittenden Corporation announced earnings for Q2-07 of $9.0 million [$0.20/share]. Excluding the non-recurring loss on the repositioning of the securities portfolio and the one time charge related to the merger of Merrill Merchants Bancshares, CHZ'sQ2-07 core earnings per share were $0.47 per diluted share or $21.6 million, compared to $21.0 million or $0.45 per diluted share for Q2-06. ROE in Q2-07 was 5.35% compared to 12.21% in Q1-07, 13.20% in Q4-06 and 12.75% in Q2-06. ROA in Q2-07 was 0.55% compared to 1.26% in Q1-07, 1.39% in Q4-06 and 1.30% in Q2-06. Book Value per share at the end of Q2-07 was $15.57 compared to $14.85 at the end of Q1-07, $14.79 at the end of Q4-06 and $14.26 at the end of Q2-06. Net Interest Income in Q2-07 was $61.954 million compared to $62.052 million in Q2-06. Net Yield on Earning Assets in Q2-07 was 4.14% compared to 4.06% in Q1-07, 4.29% in Q4-06 and 4.22% in Q2-06. Total Noninterest Income [which in Q2-07 included a loss of $14.1 milllion on on Sales of Securities] were $4.772 compared to $18.528 million in Q2-06. Investment Management and Trust contributed $6.183 million to noninterest income in Q2-07 and Service Charges on Deposits added $4.420 million. NPAs were $29.5 million at June 30, 2007, compared to $24.7 million at June 30, 2006. The increase in NPAs related to a number of small commercial loans, the largest of which was $1.5 million and the addition of $1.4 million related to Merrill Merchants. NPAs as a percentage of total loans at the end of Q2-07 were 58 basis points, which was up from 54 basis points in Q2-06. Net charge-offs as a percentage of average loans were 2 basis points for both periods. CRBC Reports EPS of $0.13 vs. $0.49 in Q2-06 PRNewswire 7-19 Citizens Republic Bancorp announced net income of $9.6 million [$0.13/share] for Q2-07, compared to $31.5 million [$0.41] in Q1-07 and $20.9 million [$0.49] in Q2-06. Q2-07 income includes a credit-related charge and restructuring and merger-related expenses associated with the Republic Bancorp merger. ROA in Q2-07 was 0.29% compared to 0.94% in Q1-07 and 1.09% in Q2-06. ROE in Q2-07 was 2.49% compared with 8.23% for Q1-07 and 12.96% for Q2-06. Book value at the end of Q2-07 was $20.28 compared to $20.78 at the end of Q1-07 and $15.15 at the end of Q2-06. Net interest income was $96.8 million for Q2-07 compared with $98.3 million for Q1-07 and $66.0 million for Q2-06. The decrease in net interest income compared with Q1-07 was due to a $270.3 million decrease in average earning assets due to branch divestitures required with the merger with Republic, a decrease in investment portfolio balances due to maturing balances not being fully reinvested, and the portfolio restructuring during the Q1-07 as part of the post-merger balance sheet restructuring strategies. Net interest margin was 3.44% for Q2-07 compared with 3.44% for Q1-07 and 3.84% for Q2-06. Noninterest income for Q2-07 was $31.3 million, essentially unchanged from Q1-07 and an increase of $7.5 million over Q2-06. The increase over Q2-06 was almost entirely due to incorporating Republic revenue and, to a lesser extent, growth in legacy Citizens' revenue stream. CRBC did have record income from brokerage fees in Q2-07. Total Nonperforming Loans in Q2-07 were $116.4 million and were 1.26% of total loans - compared to NPAs of $27.3 million in Q2-06 that were 0.48% of total loans.Nonperforming commercial loan inflows were $48.4 million in Q2-07 compared with $37.4 million in Q1-07. Nonperforming commercial loan outflows were $28.5 million in Q2-07 compared with $10.6 million in Q1-07. The Q2-07 outflows primarily consisted of $16.7 million in charged-off loans and a transfer of $5.1 million from nonperforming loan status to other repossessed assets acquired. From the Conference Call: NPAs increased $26 million and virtually all of the increase in NPAs came from non owner occupied commercial real estate. Q2-07 also had $20 million in charge-offs. In Q2-07 we had $200 million on our watch list. A Loan review found that we needed $181 million in reserves - thus the increase of $31.9 million loan loss provision. We will no longer make non-recourse loans. The CNI loans had 40 basis points in NPAs and charge-offs at 35 basis points - no deterioration of this portfolio. Residential mortgage that are over 30 days past due are up slightly - they are 2.85% of portfolio. Residential mortgage NPAs are up, but charge-offs are nominal. Wisconsin, South-east Michigan and Ohio have been markets of opportunity. Treasury sales are up 171%. SBA loans were up and were a strength of Republic. 37% of deposits were low cost deposits compared to 26% in Q2-06. CRBC will still have an overall higher cost of funds - just like our peers. CMA Reports EPS of $1.25 vs. $1.19 in Q2-06 PRNewswire 7-18 Comerica today reported Q2-07 income from continuing operations of $196 million, or $1.25 per diluted share, compared to $189 million, or $1.19 per diluted share, for Q1-07 and $195 million, or $1.19 per diluted share, for Q2-06. ROE in Q2-07 was 15.41% compared to 14.86% in Q1-07 and 15.50% in Q2-06. Net interest income in Q2-07 was $509 million compared to $502 in Q1-07 and $500 million in Q2-06. Net interest margin in Q2-07 was 3.76% compared to 3.82% in Q1-07 and 3.82% in Q2-06. Noninterest income was $225 million for the second quarter 2007, compared to $203 million for both Q1-07 and Q2-06. Nonperforming assets of $259 million were 53 basis points of total loans and foreclosed property for Q2-07, compared to $174 million and 37 basis points in Q2-06. FITB Reports EPS of $0.69 vs. $0.69 in Q2-06 PRNewswire 7-19 Fifth Third Bancorp reported Q2-07 earnings of $376 million [$0.69/share] compared with $359 million [$0.65/share] in Q1-07 and $382 million [$0.69/share] for Q2-06. Q2-07 results included a $0.02 per share credit on the sale of credit card accounts, partially offset by a loss of $0.01/share share associated with the implementation of expense reduction initiatives, including severance. Q2-06 results included a pre-tax gain of $24 million from the redemption of a portion of the common shares of MasterCard Incorporated held by Fifth Third, which was partially offset by $10 million of losses on certain securities sold during that quarter. These items benefited earnings per share in the second quarter of 2006 by net $0.02 per share. ROA in Q2-07 was 1.49% compared to 1.47% in Q1-07 and 1.45% in Q2-06. ROE in Q2-07 was 15.7% compared to 14.6% in Q1-07 and 16.0% in Q2-06. Net interest income of $745 million on a taxable equivalent basis was up $3 million from the first quarter. Growth was driven by consumer deposit production and modest reductions in consumer deposit rates, loan growth, and day count. These contributions were offset by the impact of the first quarter issuance of $750 million trust preferred securities and share repurchase activity during the first and second quarters. Net interest margin in Q2-07 was 3.37% in Q2-07 copmpared to 3.44$ in Q1-07 and 3.01% in Q2-06. Total noninterest income in Q2-07 was $707 million compared to $648 million in Q1-07 and $655 million in Q2-06. Second quarter 2007 results included a gain of $16 million on the sale of $89 million in credit card accounts. Q2-06 results included a $24 million gain from the redemption of common shares of MasterCard held by FITB, partially offset by $10 million of losses on certain securities sold in Q2-06. Total nonperforming assets in Q2-07 were $528 million [0.70% of total loans] compared to $494 million [0.66%] in Q1-07 and $358 million [0.49%] in Q2-06. FMBI Reports Net Income of $0.59 vs. 0.57 in Q2-06 Market Wire 7-25 First Midwest Bancorp reported net income for Q2-07 of $29.3 million [$0.59/share] compared to Q2-06's earnings of $28.7 million [$0.57/share]. Second quarter 2007 performance resulted a ROA 1.44% compared to 1.33% for Q2-06 and a ROE of 15.5% compared to 16.5% for Q2-06. Book value per share at the end of Q2-07 was $14.97 compared to $15.16 at the end of Q1-07 and $13.92 at the end of Q2-06. Net interest income in Q2-07 was $60.964 million compared to $65.958 million in Q2-06. On a linked-quarter basis, net interest margin of 3.61% improved 8 basis points from the first quarter and reflects the benefit of a decline inFMBI's funding costs, coupled with continued improvement in asset yields. Asset yields reflect the benefits of FMBI's strategy to reduce the size of its securities portfolio and the benefit of higher short term rates on our floating rate loan portfolios. Total noninterest income in Q2-07 was $30.623 million compared to $25.267 million in Q2-06. Service charges on deposit accounts contributed $11.483 milllion [37%] in noninterest income in Q2-07; Trust and investment management fees $3.916 million [13%]; Card-based fees $4.181 million [14%]; and Corporate owned life insurance income $1.982 million [7%]. At June 30, 2007, nonperforming assets represented 0.38% of loans plus foreclosed real estate, compared to 0.42% at March 31, 2007. As of June 30, 2007, nonperforming assets totaled $18.6 million compared to $20.8 million as of March 31, 2007. Net charge-offs for second quarter 2007 improved to 0.14% of average loans, down from 0.24% for the first quarter 2007. FMER Reports Net Income of $0.37 vs. 0.35 in Q2-06 PRNewswire 7-24 FirstMerit Corporation announced Q2-7 net income of $29.9 million [$0.37/share] compared with $27.7 million [$0.35/share] for Q2-06. ROE in Q2-07 was 13.75% compared to 12.75% in Q2-06. ROA in Q2-07 was 1.16% compared to 1.10% in Q2-06. Book value at the end of Q2-07 was $10.71 compared to $10.78 at the end of Q1-07 and $10.88 at the end of Q2-06. FTE Net interest income was $85.6 million in Q2-07 compared with $83.2 million in Q1-07 and $86.4 million in Q2-06. Net interest margin was 3.62% for Q2-07 compared with 3.58% for Q1-07 and 3.78% for Q2-06. Total earning assets in Q2-07 were $9.485 billion earning $160.827 million at an average rate of 6.80% [ compared to 6.51% in Q2-06] Total interest bearing liabilities were $7.846 billion costing $75.234 million at an average yield of 3.85% [ compared to 3.32% in Q2-06]. Noninterest income net of securities transactions for Q2-07 was $48.9 million, compared with $48.9 million in Q1-07 which included net gains of $3.5 million from previously disclosed asset sales. Excluding loan sales and servicing income, which declined $3.5 million compared with Q1-07, all other fee income categories increased in Q2-07. Service charges on deposits contributed $17.0 million [35%] to noninterest income in Q2-07; Credit card fees $11.7 million [24%]; Trust department income $6.1 million [12%]; ATM and other service fees $3.2 million [6%]; Bank owned life insurance income $3.3 million [6%]; and Investment services and insurance $2.7 million [5%]. Nonperforming assets totaled $37.0 million at June 30, 2007, compared with $32.7 million on March 31, 2007 and $58.8 million on June 30, 2006. Nonperforming assets at June 30, 2007 represented 0.52% of period-end loans plus other real estate, compared with 0.47% at March 31, 2007 and 0.86% at June 30, 2006. Net charge-offs totaled $7.6 million, or 0.43% of average portfolio loans, in the second quarter of 2007, $3.5 million, or 0.21% of average portfolio loans, in the first quarter of 2007 and $13.0 million, or 0.78% of average portfolio loans, in the second quarter of 2006. FULT Reports EPS of $0.23 vs. 0.27 in Q2-06 From the 8-K issued 7-17 Fulton earned $39.8 million In Q2-07, a 14.7% decrease from Q2-06. Diluted net income per share for Q2-07 decreased to 23 cents from the 27 cents in Q2-06 and 24 cents in Q1-07. FULT recorded a $3.4 million contingent loss during Q2-07 related to losses expected to be incurred due to the potential repurchase of residential mortgage loans and home equity loans that had been originated and sold in the secondary market. FULT also recorded a $1.5 million severance expense related to corporate-wide workforce management and centralization initiatives. ROA in Q2-07 was 1.08% comapred to 1.32% in Q2-06. ROA in Q2-07 was 10.52% compared to 13.01% in Q2-06. Shareholders’ equity at the end of Q2-07 was $8.84 compared to $8.31 at the end of Q2-06. Net interest income in Q2-07 was $120.908 million [or $124.219 after FTE adjustment] compared to $122.851 million in Q2-06. FULT’s net interest margin was 3.70% for Q2-07 compared to 3.90% for Q2-06 and 3.74% for Q1-07. Interest recoveries and other nonrecurring items added approximately 11 basis points to the net interest margin in the first quarter of 2007. As a result, on a normalized basis net interest margin improved. Total Interestearning Assets at the end of Q2-07 were $13.467 billion that earned $233.432 million at an average return of 6.95%. Total Interestbearing Liabilities at the end of Q2-07 were $11.330 billion that cost $109.204 million at an average cost of 3.86%. Other income in Q2-07 was $36.376 million compared to $34.593 million in Q2-06. Other income, excluding investment securities gains, increased $1.8 million [5.2%] in Q2-07 compared to Q2-06. The increase resulted primarily from increases in investment management and trust services and in other service charges and fees, offset by a decline in gains on sales of mortgage loans. Non-performing assets were 0.49% of total assets at 6-30-07, compared to 0.29% at 6-30-06 and 0.40% at 3-31-07. HBAN Reports EPS of $0.34 vs. $0.46 in Q2-06 PRNewswire 7-19 Huntington Bancshares reported Q2-07 earnings of $80.5 million [$0.34/share] compared to $111.6 million [$0.46/share] in Q2-06. The Q2-07 results were negatively impacted by higher loan loss provision expense, primarily related to two eastern Michigan credit relationships and one northern Ohio credit (costing $0.07/share) and expenses related to the merger with Sky Financial ($0.02/share). ROA in Q2-07 was 0.92% compared to 1.11% in Q1-07 and 1.25% in Q2-06. ROE in Q2-07 was 10.6% compared to 12.9% in Q1-07 and 14.9% in Q2-06. Book value at end of Q2-07 was $12.97 compared to $12.95 at the end of Q1-07 and $12.38 at the end of Q2-06. FTE net interest income in Q2-07 was $253.391 million compared to $255.555 million in Q1-07 and $262.195 million in Q2-06. NII decreased $8.7 million from Q2-06 reflecting the unfavorable impact of a $0.3 billion, or 1%, decrease in average earning assets and a decrease in the fully taxable equivalent net interest margin of 7 basis points to 3.27%. The decline in the net interest margin reflected a reversal of accrued interest on new non-accrual loans, lower loan fees due to a reclassification of the amortization of deferred fees on undrawn lines of credit to non-interest income, and higher funding costs. Non-interest income in Q2-07 was $156.193 million compared to $145.177 million in Q1-07 and $163.019 million in Q2-06. Non-performing assets were $261.2 million [0.97% of related assets] at 6-30-07 compared to $206.7 million [0.79% of related assets] in Q1-07 and $171.1 million [0.65% of related assets] in Q2-06. MI Reports EPS of $0.83 vs. $0.74 in Q2-06 PRNewswire 7-18 Marshall & Ilsley reported Q2-07 core operating income of $222.6 million, or $0.84 per share, as compared to $203.7 million, or $0.79 per share, in Q2-06. Core operating income grew 9.3%. On a GAAP basis, MI reported net income of $220.3 million, or $0.83 per share, as compared to $190.5 million, or $0.74 per share, in Q2-06. During the second quarter of 2007, the Corporation realized a $19.0 million pre-tax gain from the sale of MasterCard Class B shares. The impact of this gain was partially offset by an $8.9 million increase in the provision for loan and lease losses compared with the prior quarter. ROA based on core operating income for Q2-07 was 1.55% compared to 1.52% for Q2-06. ROE based on core operating income was 13.69% this quarter compared to 14.36% for Q2-06. Book Value at the end of Q2-07 was $25.20 compared to $22.68 at the end of Q2-06. MI's net interest income FTE rose $18.4 million to $402.9 million in the second quarter of 2007 -- up 5 percent compared to Q2-06. The net interest margin was 3.17%, down 6 basis points on a linked quarter basis. This ratio fell 9 basis points versus Q2-06. Avg. Interest Earning Assets returned 7.16% in Q2-07 compared to 6.91% in Q2-06. Total Interest Bearing Deposits cost 4.33% in Q2-07 compared to 3.98% in Q2-06. Total non-interest revenue was $537.0 million for the current quarter, an increase of $55.3 million or 11.5% compared with Q2-06. This increase included improved revenues from data processing services (Metavante), wealth management, and net investment securities gains (sale of MasterCard B shares). Non-performing loans and leases were 0.89% of total loans and leases at 6-30-07, compared to 0.49% at 6-30-06. On a linked quarter basis, the non- performing loan ratio increased 6 basis points. MTB Reports EPS of $1.95 vs. $1.87 in Q2-06 PRNewswire 7-12 M&T reported diluted earnings per share for Q2-07 were $1.95, up from $1.87 in the year-earlier quarter. Net income totaled $214 million, compared with $213 million in Q2-06. ROA was 1.49% compared to 1.54% in Q2-06 and ROE was 13.92% compared with 14.35% in Q2-06. For the first six months of 2007, EPS was $3.51, compared with $3.64 in the similar 2006 period. Net interest income totaled $467 million in Q2-07, up 3% from $451 million in Q2-06. Growth in average loans and leases, which rose 6% to $43.6 billion in the recent quarter from $41.0 billion in Q2-06, was the most significant contributor to the improvement. Such growth was attributable to average outstanding balance increases in commercial loans, commercial real estate loans and residential real estate loans. Net interest margin was 3.67% in Q2-07, compared with 3.66% in Q2-06 and 3.64% in Q1-07. The Yield on average earning assets was 6.95% in Q2-07 compared to 6.63% in Q2-06. The Cost of interest-bearing liabilities was 3.87% in Q2-07 compared to 3.56% in Q2-06. Total interest-bearing deposits cost was 3.16% compared to 2.99% in Q2-06. Noninterest-bearing deposits fell slightly to $7.339 billion from $7.446 billion. Noninterest income in Q2-07 totaled $283 million, an increase of 8% from $263 million in Q2-06. Contributing to the increase were higher deposit account service charges, revenues from providing brokerage, trust and corporate advisory services, and $8 million relating to M&T's pro-rata portion of the operating results of Bayview Lending Group. Loans classified as nonperforming totaled $296 million, or .68% of total loans at June 30, 2007, compared with $156 million or .38% a year earlier, $224 million or .52% at 12-31-06 and $273 million or .63% at 3-31-07. Contributing to the increase in nonperforming loans from March 31, 2007 was the addition of a $34 million loan to a residential home builder and developer in the Mid-Atlantic region. From the conference call: Deposit costs rose in Q1 and eased late in Q1 and the trend continued in Q2. This was positive to our margin. DDA's were down - primarily due to decreases in commercial DDAs. We do not see a change in this trend. Stagnant DDA growth will hurt interest margins but may help fee income. Deposit service charges were up in Q2 - why? MTB has a promotion in process that makes ATMs free of charge - and that has driven consumer deposit volume growth. On NPA's, there were 10 loans of $5 million or greater. One $34 million NPA loan where the customer is current in payments was placed in NPAs when a review devalued the property, so the 'loan to value' fell to an unacceptable level. This loan is for vacant lots. We think we are on top of it. In Q2 the flow of dollars into NPA's slowed because we scrubbed that portfolio in Q1. MTB was asked about their construction loan re-appraisal that added the $34 million loan to NPAs. MTB stated that all loans re-appraised at least annually. MTD did reappraisals in Sept 06 and again in May 07. Their real estate portfolios differ by region. In the East, MTB believes those loans are insulated from the negative real estate trends because more of those loans are for second homes to individuals where there is high in equity content - around 30%. We tend to be have been and will continue to be low loan to equity lenders. In Mid-Atlantic, move up homes and low condo exposure - still high equity content of loans. On the Alt-A loans - there were no bulk sales during Q1, but there were some small sales - and pricing was holding up nicely - with an average gain on sale of 100 basis points. Alt-A's were 5% of MTB's loan volumes. There was no margin compression during the quarter - but we have seen a 10 basis point fall in margins so far in Q3. We believe pressure will continue on margins for Alt-A for the next two quarters. $1 billion of Alt-A loans were retained. Are the Alt-As performing in line with the rest of the home loan portfolio? No. Of the $883 million portfolio - marked to market and kept on books. The do have higher delinquencies. But price to sell them we felt was irrational. There will be more charge-offs. Are the Alt-A's performing in line with expectations? Yes. As prepayments slow on mortgages, there will be downward pressure on margins. There were $6.4 million in prepayment penalties vs. $3.6 million in Q1. But if you look at first 6 months of 2007, there were $20.6 million in prepayments vs. $20.4 million for prior 6 months. Prepayments pace has not changed - it is just lumpy from quarter to quarter. Real estate consumer loans fell - why? That was primarily due to a decline in Alt-A's. Growth in loan loss provisions was up - and that was due to loan growth. More banks have said that they are open to a merger of equals - it is a sign of a tough banking environment. NCC Reports EPS of $0.60 vs. $0.77 in Q2-06 PRNewswire 7-26 National City Corporation reported Q2-07 net income of $347 million [$.60/share] compared to $319 million [$.50/share] for Q1-07, and $473 million [$.77/share] for Q2-06. For the first half of 2007, net income was $666 million [$1.09/share] compared to $932 million [$1.51/share] for the first half of 2006. ROE in Q2-07 was 11.37% compared to 8.99% in Q1-07 and 15.10% in Q2-06. ROA in Q2-07 was 1.00% compared to 0.94% in Q1-07 and 1.35% in Q2-06. Book value at the end of Q2-07 was $21.45 compared to $22.12 at the end of Q1-07 and $20.84 at the end of Q2-06. FTE net interest income in Q2-07 was $1.096 billion compared to $1.118 billion in Q1-07 and $1.167 billion in Q2-07. Net interest margin for Q2-07 was 3.59%, down 10 basis points from Q1-07, and down 14 basis points Q2-06. Noninterest income was $764 million in Q2-07, compared to $621 million in Q1-07 and $784 million in Q2-06. Deposit service fees contributed $223 million [36%] in Q2-07; Brokerage revenue $54 million [7%]; and Loan sale revenue $110 [18%]. Second quarter 2007 net charge-offs were $98 million, compared to $147 million in the preceding quarter, and $76 million in the second quarter a year ago. The first quarter of 2007 included some relatively large charge-offs for passenger airline leases and nonconforming mortgage loans. Nonperforming assets were $848 million [.085% of loans] at June 30, 2007 compared to $732 million [.080%] at December 31, 2006. NTRS Reports EPS of $0.92 vs. $0.76 in Q2-06 PRNewswire 7-18 Northern Trust reported record net income per common share of $.92 for Q2-07, an increase of 21% from $.76 per share a year ago. Net income increased 23% to a record $206.9 million, up from $167.9 million earned in Q2-06. Northern Trust's second quarter consolidated revenues reached a record $882.4 million, up 11% from last year's second quarter. Trust, investment and other servicing fees increased 18% from last year to a record $532.7 million and represented 60% of second quarter revenues. Total fee-related income represented 76% of revenues. ROA in Q2-07was 1.40% compared to 1.33% in Q1-07 and 1.28% in Q2-06. ROE in Q2-07 was 20.23% compared to 19.21% in Q1-07 and 18.05% in Q2-06. Book Value at the end of Q2-07 was $19.21 compared to $18.43 at the end of Q1-07 and $17.48 at the end of Q2-06. FTE Net interest income for Q2-07 totaled $208.6 million, up 5% from $199.0 million reported in Q2-06. The increase reflects higher levels of average earning assets, partially offset by a decline in the net interest margin. The net interest margin equaled 1.58%, down from 1.73% in the prior year quarter. The decline in the net interest margin reflects the impact of FSP 13-2 and the narrowing of the interest rate spread. Nonperforming Assets to Loans & OREO [other real estate owned] was 32.4 million or 0.13 % compared to $37.0 million or 0.17 % in Q1-07 and $32.8 million or 0.15 % in Q2-06. PRK Reports EPS of $1.62 vs. 1.70 in Q2-06 Prime Newswire 7-16 Park National Corporation reported net income for Q2-07 totaled $23.5 million compared to $23.9 million in Q2-06. EPS for Q2-07 were $1.62 compared to $1.70 in Q2-06. ROA in Q2-07 was 1.51% compared to 1.78% in Q2-06. ROE in Q2-07 was 14.73% compaerd to 17.89% in Q2-06. Book value at the end of Q2-07 was $43.81 compared to $38.72 at the end of Q2-06. Net interest income in Q2-07 was $60.410 million compared to $53.822 million in Q2-06. Net interest margin in Q2-07 was 4.32% compared to 4.38% in Q2-06. Yield on earnings asset in Q2-07 was 7.33% compared to 6.76% in Q2-06. Cost of interest bearing liabiities in Q2-07 was 3.55% comapred to 2.89% in Q2-06. Nonperforming loans at the end of Q2-07 was $38.754 million [0.94% of total loans] compared to $23.087 million [0.69%] in Q2-06. Net charge-offs as a percent of laons in Q2-07 was 0.28% compared to 0.18% in Q2-06. ONB Reports Net Income of $0.30 vs. $0.30 in Q2-06 Prime Newswire 7-30 Old National Bancorp announced Q2-07 net income of $19.6 million, or $.30 per share, up significantly from the $.16 per share earned in Q1-07 and unchanged from the $.30 per share earned in Q2-06. The Q1-07 contained pre-tax charges totaling $7.7 million, or approximately $.08 on an after-tax per share basis, related to the execution of various strategic initiatives. ROA in Q2-07 was .96% compared to .97% in Q2-06. ROE in Q2-07 was 12.30% compared to 12.82% in Q2-06. Book Value at the end of Q2-07 was $9.45 compared to $9.24 at the end of Q2-06. FTE net interest income during Q2-07 was $58.6 million with a net interest margin on total average earning assets of 3.20%. This compared to $56.0 million and a margin of just 3.00% for Q1-07. Old National reported total fees, service charges and other revenue of $39.0 million for Q2-07, a $2.8 million increase from Q1-07 and a $2.6 million increase from Q2-06. Q1-07 contained charges of $1.2 million relating to the extinguishment of debt and $1.2 million in seasonal commission adjustments, or contingency income, from the insurance business compared to just $.2 million received in Q2-07. Q2-07 contained an increase of $1.0 million in service charges on deposit accounts, an additional $.5 million in property and casualty commissions for the insurance line of business as well as an additional $.4 million in gain on sales of OREO property. Net charge-offs declined from Q1, at $3.8 million, or an annualized .31% of total average loans for Q2-07, compared to $4.6 million, or .38% on an annualized basis, for Q1-07. SNV Reports EPS of $0.49 vs. 0.38 in Q2-06 Business Wire 7-24 Synovus' second quarter earnings grew 6.5% over the second quarter of 2006 to $162.8 million, which represented diluted earnings per share growth of 5.0% to $.49 per share. ROA in Q2-07 was 2.00% compared to 2.07% in Q2-06. ROE was 16.69% compared 18.45% in Q2-06. FTE Net Interest Income in Q2-07 was $291.906 million compared to $286.262 million in Q1-07 and $287.203 million in Q2-06. The net interest margin for the quarter was 4.05%, compared to 4.10% last quarter and 4.39% in the second quarter of last year. Total Non-Interest Income in Q2-07 was $552.048 million compared to $514.059 million in Q1-07 and $514.509 milllion in Q2-06. Electronic Payment Processing Services contributed $243.411 million [47%] to noninterest income in Q2-07; Merchant Acquiring Services $64.277 million [12%]; Other Transaction Processing Services Revenue $55.121 million [11%]; Service Charges on Deposits $28.050 million [5%]; Fiduciary and Asset Management Fees $12.434 million [2%]; Brokerage and Investment Banking Revenue $7.809 million [1%]; Mortgage Banking Income $7.695 million [1%]; and Bankcard Fees $11.567 million [2%]. The ratio of nonperforming assets to loans and other real estate was 0.87%, 0.68% in Q1-07 and 0.48% in Q2-06. The net charge-off ratio was 0.25% compared to 0.13% last quarter and 0.17% in Q2-06. SUSQ Reports EPS of $0.19 vs. 0.38 in Q2-06 Business Wire 7-24 Susquehanna Bancshares announced net income for Q2-07 was $9.8 million [$0.19/share] compared to $19.3 million [$0.38/share] for Q2-06. SUSQ completed a restructuring of its bank investment portfolio, which was meant to reduce administrative costs, improve the yield on the portfolio, and enhance related net interest margin and net interest income. The restructuring involved the sale of $233 million in available- for-sale securities, or approximately 16% of SUSQ's total investment portfolio. The sold securities had a weighted average yield of 3.76%, and the proceeds were reinvested in securities with an expected yield of 5.75%. The restructuring resulted in a pre-tax charge of $11.8 million in June 2007. ROE in Q2-07 was 4.16% compared to 8.88% in Q2-06. ROA in Q2-07 was 0.48% compared to 0.97% in Q2-06. Book Value per share at the end of Q2-07 was $18.11 compared to $17.47 at the end of Q2-06. Net interest income after provision for loan and lease losses $61.504 million in Q2-07 compared to $64.834 million in Q2-06. Net interest margin for Q2-07 decreased 22 basis points to 3.67% compared to 3.89% for Q2-06. Total interest-earning assets in Q2-07 were $7.028 billion earning $121.856 million at an average rate of 6.95% compared to 6.76% in Q2-06. Total interest-bearing liabilities in Q2-07 were $6.112 billion costing $57.608 million at an average yeild of 3.78% compared to 3.35% in Q2-06. Total noninterest income in Q2-07 was $19.151 million compared to $32.078 million in Q2-06. [Due to the high losses on loan sales, the following percentage numbers are calculated as a percentage of Q2-06's income] Service charges on deposit accounts contributed $7.181 million [22%] in Q2-07; Vehicle origination, servicing, and securitization fees $3.888 million [12%]; Asset management fees $4.792 million [15%]; Income from fiduciary-related activities $1.755 million [5%]; Commissions on brokerage, life insurance and annuity sales $1.567 million [5%]; Commissions on property and casualty insurance sales $2.941 million [9%]; Income from bank-owned life insurance $2.641 million [8%]; Net gain on sale of loans and leases $1.474 million [5%]; and Net loss on securities was $11.801 Net charge-offs as a percentage of average loans and leases for the quarter ended June 30, 2007 were 0.14% compared to 0.05% for Q2-06. Total nonperforming assets at the end of Q2-07 were $36.893 million [0.66% of total Loans & leases & OREO] compared to $21.739 million [0.38%] in Q2-06. STBA Reports EPS of $0.56 vs. $0.43 in Q2-06 PRNewswire 7-17 S&T Bancorp announced net income of $13.9 million [$0.56/share] for Q2-07 compared to $11.2 million [$0.43/share] for Q2-06. ROA in Q2-07 was 1.66%, 1.62 in Q1-07, 1.60% in Q4-06, 1.77$ in Q3-06, 1.37% in Q2-06 and 1.80% in Q1-06. ROE in Q2-07 was 17.07%, 15.90% in Q1-07, 15.30% in Q4-06, 16.95% in Q3-06, 13.01% in Q2-06 and 16.20% in Q1-06. Book Value at the end of Q2-07 was $12.98 compared to $13.16 at the end of Q1-07, $13.37 at the end of Q4-06, $13.24 at the end of Q3-06, $13.14 at the end of Q2-06 and $13.41 at the end of Q1-06. FTE Net interest income for Q2-07 was $30.2 million compared to $29.2 million for Q2-06. FTE net interest margin in Q2-07 was 3.86% compared to 3.85% in Q1-07 and 3.94% in Q2-06. Total Noninterest Income in Q2-07 was $9.043 million compared to $8.516 million in Q1-07 and $9.090 million in Q2-06. Service Charges and Fees contributer $2.529 million [28%] to noninterest income in Q2-07; Wealth Management $1.978 million [22%]; and Insurance $1.792 million [20%]. Nonperforming assets totaled $15.6 million or 0.46 percent of total assets at June 30, 2007 as compared to $20.5 million or 0.61% at March 31, 2007 and $20.4 million or 0.61% at December 31, 2006. Net loan charge-offs on an annualized basis for the first six months of 2007 were $0.9 million or 0.07% of average loans compared to $5.2 million or 0.41% for the first six months of 2006. USB Reports EPS of $0.65 vs. 0.66 in Q2-06 Businesswire 7-17 U.S. Bancorp reported net income of $1,156 million for Q2-07, compared with $1,201 million for Q2-06. Diluted earnings per common share of $.65 in Q2-07 were lower than Q2-06 by 1.5%, or $.01 per diluted common share. ROA was 2.09% compared to 2.27% in Q2-06. ROE was 23.0%, compared with 24.3% for Q2-06. Book value per share at the end of Q2-07 was $11.19 compared to $11.37 at the end of Q1-07 and $10.89 at the end of Q2-06. FTE Total net revenue for Q2-07 was $3.505 billion, and was up $53 million primarily reflecting a 5.7% increase in noninterest income partially offset by a 2.8% decline in net interest income from Q2-06. Noninterest income growth was driven primarily by organic business growth of 7.8% offset somewhat by the impact in Q2-06 of a $35 million gain from the initial public offering of a card association. On a linked quarter basis, total net revenue increased $143 million (4.3%), primarily reflecting organic growth and seasonally higher transaction volumes in several revenue categories. Q2-07 FTE net interest income was $1,650 million, compared with $1,697 million in Q2-06. Average earning assets for the period increased over Q2-06 by $7.4 billion (4.0%), primarily driven by an increase of $6.3 billion (4.5%) in total average loans. The positive impact to net interest income from the growth in earning assets was more than offset by a lower net interest margin. The net interest margin in Q2-07 was 3.44% compared with 3.51% in Q1-07 and 3.68% in Q2-06, reflecting the competitive environment and the impact of the flat yield curve during the past several quarters. Average noninterest-bearing deposits for Q2-07 decreased $972 million [3.4%] compared with Q2-06 and Average noninterest-bearing deposits for Q2-07 had an increase of $300 million [1.1%] compared with Q1-07. Funding costs have increased as rates paid on interest-bearing deposits have risen and the funding mix continues to shift toward higher cost deposits and other funding sources. An increase in loan fees partially offset these factors. Q2-07 noninterest income was $1,855 million, an increase of $100 million (5.7%) from Q2-06 and $159 million (9.4%) higher than Q1-07. The increase was driven by organic growth of 7.8 percent offset somewhat by a $35 million gain on the initial public offering of a card association recorded in Q2-06. Nonperforming assets to loans plus ORE in Q2-07 was .39% compared to .40% in Q1-07 and .39% in Q2-06. From the Conference Call: USB was asked if they want into the capital markets business. USB stated that they felt good about not having that business segment, that they liked being a simpler company. One way USB plans to unlock the value of their large corporate payment business is to deepen their of customer relationships. They want to use the payments business as an opening to do more cross selling to their customers. USB is doing this through changes in compensation, with thousands of employees paid out of a corporate pool - rewarding cross selling behavior. USB also is spending on R&D - with a goal to develop the next new thing that our customers will need. Currently 4600 US financial institutions use US Bank for payment services. When asked about opportunities in M&A, USB said that they expect to do more of the same - find small banks [$500 million to $2 billion in market cap] located in growth markets in the West. They are looking for private deals, not auctions. In payments and processing, USB continues to look for opportunities. When asked how USB can competitively bid again all the private equity capital out there, USB stated that some owners want to keep jobs and sell the company. This is something USB is willing to do that private equity tends not to do. The card portfolio loss rate was 2.7% last year compared to 3.56% this quarter. Bankruptcies slowed in 2006 due to 2005 law change, but that rate is returning to normal. USB projects that a mid 3.5's loss rate should continue. USB has only prime credit cards - they do not have any sub-prime card customers. And 3.5% to 4.0% charge-offs reflects prime quality. Even prime customers will have charge-offs. The card business is growing at 20%/annum. Year-to-date USB has purchased 23 portfolios of card debt from other banks. USB stated that every Wednesday top management meets with the heads of tech and legal departments to discuss M&A's and organic initiatives. If an idea has legs, USB then moves quickly. Organic growth initiatives are treated with the urgency of an outside deal. What gets tracked gets done. USB tracks their investments in organic programs. We project a NPV, we forecast ROIs, we look at cost of capital. We target new ideas that can have at least a 14%-20% return with a payback two years to 18 months. VLY Reports EPS of $0.33 vs. $0.33 in Q2-06 PRNewswire 7-18 Valley National Bancorp announced net income for Q2-07 of $39.7 million, which includes a $1.8 million net loss on trading securities after taxes, compared to $40.8 million for Q2-06, which included a $191 thousand net gain on trading securities after taxes. Adjusted for a five percent stock dividend issued on May 25, 2007, fully diluted earnings per common share were $0.33 for Q2-07, unchanged from Q2-06. ROE in Q2-07 was 16.98% compared to 17.25% for Q2-06. Annualized ROA was 1.30% in Q2-07 compared to 1.33% in Q2-06. Book value at the end of Q2-07 was $7.72 compared to $7.69 at the end of Q2-06. FTE Net interest income for Q2-07 was $97.4 million, a $2.6 million decrease from Q2-06 and a decrease of $386 thousand from Q1-07. The moderate decline in net interest income during Q2-07 was mainly a result of lower average earning assets and a $75 million investment in bank owned life insurance. The change in the cash surrender value of the additional bank owned life insurance generated $827 thousand of non-interest income during the three months ended June 30, 2007 which is not shown in the net interest margin calculation. The FTE net interest margin was 3.45% for Q2-07, unchanged from Q1-07 and a decrease of 3 basis points from Q2-06. The yield on average interest earning assets increased 8 basis points mainly due to a 13 basis point increase in the yield on average total loans from Q1-07. However, the cost of average interest bearing liabilities increased 11 basis points from Q1-07 as deposits and other borrowings continue to reprice at higher interest rates. Valley's cost of total deposits remained relatively low by industry standards at 2.51% for Q2-07 compared to 2.44% for Q1-07. The increase of 7 basis points was primarily due to a growth in retail time deposits during the quarter partially offset by the maturity of lower cost brokered deposits. Non-interest income for Q2-07 increased $283 thousand [1.5%] from $19.396 million for Q2-06 to $19.679 million. Net gains on loans held for sale increased $2.2 million from Q2-06 primarily due to the sale of approximately $240 million residential mortgages held at fair value. Service charges on deposit accounts increased $1.0 million mainly due to better collection of overdraft fees compared to Q2-06. Bank owned life insurance income increased $849 thousand primarily due to $827 thousand of income generated from an additional investment of $75 million during Q2-07 to offset rising employee benefit costs. Partially offsetting these increases, net gains on trading securities decreased $3.1 million mainly due to the sale of approximately $1.1 billion in mortgage-backed securities and the termination of certain derivative transactions during Q2-07. Total non-performing assets, consisting of non-accrual loans, other real estate owned and other repossessed assets, totaled $30.9 million, or 0.38% of loans at 6-30-07 up slightly from $30.8 million or 0.38% of loans at 3-31-07. WBS Reports EPS of $0.63 vs. 0.81 in Q2-06 PRNewswire 7-24 Webster Financial Corporation announced net income of $35.5 million [$.63/share] for Q2-07 compared to $35.0 million [$.62/share] for Q1-07 and $43.1 million [$.81/share] for Q2-06. Q2-07 net income includes charges of $13.0 million ($8.5 million, net of tax) or $.15 per diluted share - $.07 of severance-related and other charges and $.08 of net charges in prepayment of capital trust securities. Q1-07 includes charges of $5.2 million ($3.4 million, net of tax) or $.06 per share. ROE in Q2-07 was 9.28% compared to 10.35% in Q2-06. ROA in Q2-07 was 1.04% compared to 0.96% in Q2-06. Book value per common share at the end of Q2-07 was $33.63 compared to $31.22 at the end of Q2-06. Net interest income was $130.4 million in Q2-07 compared to $128.1 million in Q1-07 and $126.8 million in Q2-06. Average interest-earning assets were lower in Q2-07 compared to Q2-06 as a result of Webster's recent balance sheet repositioning actions; however, Webster's FTE net interest margin increased to 3.47% compared to 3.41% in Q1-07 and 3.13% in Q2-06. Yield on interest-earning assets in Q2-07 was 6.62% compared to 6.61% in Q1-07 and 6.11% in Q2-06. Cost of interest-bearing liabilities in Q2-07 was 3.25$ compared to 3.29% ion Q1-07 and 3.05% in Q2-06 > Total noninterest income was $64.0 million Q2-07, including the $2.1 million gain on Webster Capital Trust I and II securities held by Webster, compared to $57.4 million in Q1-07 and $57.1 million in Q2-06. Deposit service fees totaled $28.8 million [45%], with growth partly reflecting the growth in deposits and the recent implementation of a new consumer fee structure. Insurance revenue was $9.1 million [14%]; Loan-related fees were $7.9 million [12%]; and Wealth management fees totaled $7.6 million [12%]. Net loan charge-offs totaled $4.2 million compared to $5.3 million in Q1-07 and $2.5 million in Q2-06. Nonperforming assets totaled $78.7 million, or 0.63% of total loans and other real estate owned at June 30, 2007 compared to $64.8 million, or 0.53%, at March 31 and $61.8 million, or 0.49%, a year ago. WL Reports Income of $0.70 vs. $0.67 in Q2-06 Business Wire 7-20 Wilmington Trust Corporation reported that net income for Q2-07 was $48.9 million and EPS was $0.70 per share. These were increases of 4% and 5% from Q2-06. ROA in Q2-07 was 1.80% compared to 1.81% in Q2-06. ROE in Q2-07 was 17.51% compared to 17.75% in Q2-06. Book value at the end of Q2-07 was $15.77 compared to $15.54 at the end of Q2-06. Net interest income in Q2-07 was $92.8 million compared to $ 90.4 million in Q2-06. Net interest margin in Q2-07 was 3.73% compared to3.67% in Q1-07 and 3.84% in Q2-06. Total earning assets yielded an average 7.23% in Q2-07 compared to 7.22% in Q1-07. Total interest-bearing deposits cost an average 3.66% in Q2-07 compared to 3.73% in Q1-07. Noninterest income in Q2-07 was $96.9 million compared to $86.3 million in Q2-06. The Ratio of nonperforming assets to loans (in basis points) in Q2-07 were 55 bps compared to 40 bps in Q1-07 and 57 bps in Q2-06. Nonaccruing loans were $17.9 million higher at 6-30-07, than at 3-31-07. Approximately $10.3 million of this amount was for three loans to Philadelphia-based Elliott Building Group, which filed for bankruptcy in June 2007. Each of these loans, which are for residential housing projects under construction in southern New Jersey. Other real estate owned (OREO - a component of NPAs) declined due to the sale of a parcel of agricultural land in New Jersey that had been classified as OREO since Q2-06. The sale of this property resulted in a gain of $1.4 million that was recorded in other income for Q2-07. Small Cap vs. Large-Cap Banks Mark Gongloff, WSJ 7-16 The U.S. banking sector is looking a lot like it did at the end of the late-1990s tech-stock boom, “when the stocks could not be given away,” FTN Midwest Securities Analysts said in a note today. Written on the eve of a slew of bank earnings and in the wake of recent profit warnings from Citizens Republic Bancorp, Huntington Bancshares, Independent Bank Corp., Mercantile Bank and PFF Bancorp, the note points out that the end of the 1990s boom was characterized by “emerging credit issues as clearly telegraphed by widening corporate bond spreads and cracks in the leveraged finance market,” among other things. Corporate bond spreads have not yet widened, and the cracks in leveraged finance are small, but a handful of LBO targets have had to delay or alter their debt offerings as lenders grow more wary. The environment is not nearly as ugly for banks as it was at the turn of the millennium. And small-cap banks are taking it on the chin a lot harder than large-caps, which have “more-diversified revenue streams and lesser reliance on real-estate financing,” the analysts write, pointing out that the FTN Small-Cap Bank Index is down 16% so far this year, compared with a 6% loss so far for the FTN Large-Cap Bank Index. But FTN analysts are on the lookout for broader pain. “If liquidity is withdrawn from the markets — especially the leveraged finance market — issues will multiply,” they write. Their warning is based on the “Cockroach Theory,” which holds that, if you see one cockroach in your house, you have to assume there a many more lurking unseen. Similarly, in the credit market, “once a few problems emerge, investors assume there are many more to come,” the FTN analysts write. “Investors have to be sensitive to credit because nothing else will destroy earnings and capital given leverage inherent in bank balance sheets….” Ratings & Dividend Changes On 7-23 Lehman Brothers downgraded ABBC to underweight from equal-weight, saying it expects results to remain under pressure in coming quarters. The broker told clients that competitive pricing for both loans and deposits should continue to weigh on the firm's interest margin. In addition, it said more challenging economic conditions in the company's footprint make it difficult to grow loans. Finally Lehman said that Associated Banc-Corp.'s core competency, which is middle market commercial real estate lending, is especially weak. On 7-23 Stifel Nicolaus Upgraded FITB from Sell to Hold and Boenning & Scattergood Downgraded CRBC from Market Outperform to Market Perform. [Boenning & Scattergood had upgraded CRBC on March 13th, when CRBC was selling close to $23, and now downgrades when CRBC is selling around $17.] On 7-17 NTRS declared a dividend of $0.25 per share payable on October 1, 2007, to stockholders of record at the close of business on September 10, 2007. On 7-17 FULT dividend of 15 cents per share payable Oct. 15 to shareholders of record Sept. 21. On 7-18 MTB declared a dividend of $.70 per share - an increase of 17% over the $.60 prior dividend - payable September 28, 2007 to stockholders of record on September 4, 2007. On 7-18 SUSQ announced a dividend of 25 cents per share payable Aug. 17 to shareholders of record Aug. 1st. On 7-20 WL declared a dividend of $0.335 per share payable 8-15-07 to stockholders of record on 8-01-07. On 7-25 ASBC declared a dividend of 31 cents, payable Aug. 15 to shareholders of record Aug. 7. On 7-26 ONB declared a quarterly cash dividend of $.22 payable September 18, 2007, to shareholders of record September 4, 2007. On June 26 BB&T approved a 9.5% increase in the dividend to $.46 per share payable on Aug. 1 to shareholders of record on July 13. Home Page Factoids Previous Update |