|
Factoids Yahoo Banks Excite Banks Banking News Bankstocks.com 2007 Updates Sept Aug Jul Jun May Apr Mar Feb Jan 2006 Updates Dec Nov Oct Sept Aug July Jun May Aprl Mar Feb Jan 2005 Updates Dec Nov Oct Sept Aug July Jun May Aprl Mar Feb Jan 2004 Updates Dec Nov Oct Sept Aug July Jun May Aprl Mar Feb Jan 2003 Updates Dec Nov Oct |
ASBC Reports EPS of $1.17 vs. $1.20 in Q3-06 Business Wire 10-18 Associated Banc-Corp earned $71.7 million [$.56/share] in Q3-07 compared to $75.8 million [$.59/share] in Q2-07 and $76.9 million [$.58/share] in Q3-06. ROA in Q3-07 was 1.38% compared to 1.48% in Q2-07 and 1.46 in Q3-06. ROE in Q3-07 was 12.69% compared to 13.49% in Q2-07 and 13.36% in Q3-06. Book value at the end of Q3-07 was $18.04 compared to $17.56 in Q2-07 and $17.44 in Q3-06. Net interest income was $163.1 million, compared to $157.5 million for Q2-07 and $168.2 million for Q3-06. The net interest margin was 3.62%, up 9 basis points over Q2-07 and down 1 basis point from Q3-06. Contributing to the net interest margin for third quarter was the growth in average deposits as a percentage of total funding, as well as an improved interest rate spread. Earning assets were $18.575 billion at an average yield in Q3-07 of 7.03% compared to 6.67% in Q2-07. Interest-bearing liabilities were $15.818 billion at an average rate in Q3-07 of 4.03% in Q3-07 compared to 3.62% in Q2-07. Noninterest income was $84.9 million for the third quarter of 2007, down $6.6 million compared to the second quarter of 2007, largely the result of $6.7 million lower net mortgage banking income and $2.4 million lower investment and asset sale gains, partially offset by $2.5 million growth in all other noninterest income categories combined. Core fee-based revenues for the quarter were $65.4 million, up $1.7 million or 3 percent higher than second quarter and up 14 percent over the third quarter of 2006. On a year-to-date basis, core fee-based revenue was $189.3 million, up $16.8 million or 10% over the nine-month period last year, with solid growth in deposit service charges (12%), trust service fees (16%), card-based and other fees (13%) and a 1% increase in retail commissions. Trust service fees in Q3-07 were $10.886 million; Service charges on deposit accounts $26.609 million; Card-based and other nondeposit fees $12.436 million; Retail commissions $15.476 million; and Mortgage banking, net $3.006 million. Net mortgage banking income was $3.0 million, compared to $9.7 million for Q2-07. The quarterly results were affected in part by lower secondary mortgage production (down 23%) and by lower valuation reserve recoveries (that is, a $0.1 million recovery in Q2 versus a $3.8 million recovery in Q2). Net charge offs to average loans were 38 basis points for the quarter and 22 basis points for the nine months ended Sept. 30, 2007. Q3-07’s net charge offs of $14.7 million included a $6 million charge off related to an individual commercial credit. Commercial nonperforming loans decreased by $29 million or 21% from June 30, 2007. Total nonperforming loans declined to 0.99% of total loans compared to 1.19% of loans at June 30. From the Conference Call: BB&T Corporation reported net income for Q3-07 totaling $444 million [$.80/share] compared with $417 million [$.77/share] earned during Q3-06. ROA was 1.37% compared to 1.42% in Q3-06. ROE was 14.24% compared to 14.39% in Q3-06. Book value per share $ 22.58 compared to $21.70 in Q3-06. FTE Net interest income in Q3-07 was $992 million compared to $960 million in Q3-06. In Q3-07 there was a shift to higher priced deposits and there was a shift in loan mix that hurt earning asset growth. FTE net yield on earning assets [NIM] was 3.45% compared to 3.86% in Q3-06. Total earning assets had an average yield of 7.11% compared to 6.99% in Q3-06. Total interest-bearing liabilities cost 4.20% compard to 3.91% in Q3-06. Noninterest income in Q3-07 was $675 million compared to $660 million in Q3-06. Service charges on deposits in Q3-07 were $157 million; Other nondeposit fees and commissions $129 million; Investment banking and brokerage fees and commissions $87 million; Trust revenue $40 million; and Mortgage banking income $27 million. Nonperforming assets as a percentage of total assets were .42% at Sept. 30 compared to .33% at June 30 and .28% at Sept. 30, 2006. Annualized net charge-offs were .40% of average loans and leases for Q3-07, up from .27% in Q3-06. Excluding losses incurred by BB&T's specialized lending subsidiaries, annualized net charge-offs were .23% of average loans and leases compared with .14% in Q3-06. From the Conference Call: BBT maintained or gained market share [based on FDIC data] in every state in which we operate. We are out of community bank acquisitions due to high pricing - and it is harder to do due diligence on loan portfolios [community banks are real estate lenders of last resort]. We will do relatively small insurance acquisitions and consumer finance companies. Residential real estate - mortgage origination should benefit due to our quality. We operate with established regional builders. Prices have not fallen materially, but volumes have. We project another year to 18 months before we get through cycle. Consumers appear to think prices will keep falling. But we have in-migration of population in our markets. Affordability of prices in Atlanta is good - as in most of our markets. We are liability sensitive by design - a way of hedging real estate risk. So we are better positioned than most banks. Risk spreads are returning to normal. We tend to originate and hold [with exception of our business with Freddie and Fannie]. It is those who originated and sold who have been most negatively affected recently. Gary Townsend with FBR wanted to know BBT's home builders loan exposures. BBT: For residential construction - we lend to established builders and we are secured lenders - builders are having liquidity problems and hurt by lack of available mortgages for some segments - and foreclosures coming back to the market - residential market that has discounts - so there is slowed activity. We have some problem loans in Atlanta - majority was from the Main Street bank acquisition, and problems in suburbs in DC. Percentage wise there are more problems in Florida [we are not big there]. There have been residential price decline in Florida and DC. Core markets like Charlotte and Raleigh - prices not down much but activity has declined. BBT is not having problems in home equity loans - but we had high credit scores [724 in equity loans - 1st mortgages are 78% of the portfolio - equity line scores are 757] for those borrowers - our problem in lack of volume in a high margin product. Nancy Bush with NAB Research - you have not had a good record of predicting NIM - are you getting a handle on it yet? BBT: We did see some spread compression this quarter. Our problem with rising non-accruals was more than we anticipated. And the change in assets mix also hurt NIM. The slow down in single family residential loans - which are more fee intensive and higher yielding - that hurt our margins more than expected. Higher liability costs were driven by the market disruption - that was not foreseen - as was the movement away from DDAs. But going forward, the declining rates are good for us because we are liability sensitive. Bush: CRE loans are a challenge - any heightened regulatory examination of that? BBT: We just finished a targeted exam - and it came out well. Bank regulators will be focused on real estate loans. But that type of loan problem will have more effect on community banks tham it would have on us - given our systems of controls on loans. We were not in the sub-prime loan market. We did not do negative amortization mortgages. We were not in the private equity markets. These are the things [which we did not do] that are getting regulatory attention. In commercial real estate - Office and shopping center markets are doing well. Office occupancy rates are high and apartments are doing well. Traditionally office and apartments have followed problems in residential - but traditionally it was higher rates that caused problems in residential. Cap rates have gone up. But economy would need to get in trouble to hurt commercial real estate. Will it continue to be harder to pass along fed cuts in deposit pricing? BBT: Wachovia has been more price competitive in deposit pricing. Community banks [which are more of our competition] have backed down the pricing pressure, possibly because they lack loan demand and they have other challenges. We project CD deposit pricing will go down to reflect lower fed fund rates. Steven with JP Morgan - NPA and charge offs to go up - will loan loss reserves go up? BBT: I don't know. GAAP rules cause that to be a mathematical process. Steven: Why won't margins stay under pressure due to increased wholesale funding? BBT: Deposit costs declined in Q1 and we expect that trend to return. Rate drop happened Sept 18th - and we did not get much benefit to that in Q3. Everyone is under margin pressure - so competitive rates should lessen. Todd Hagerman with Credit Suisse - with your 40-50 basis points in loan losses - and with the housing market taking 18 months to get back - why are you confident that losses will stay low? BBT: It is a guess. And we are a secured lender - so we will not have high losses on even the foreclosures. But we expect the economy will not tank - so housing demand will return. Traditionally our losses have been 27-28 basis points while peers were in the 70s. We tend to not fund spec houses. We do not do big subdivisions. We do not have a concentration in any one market. We lend in markets where we know the markets. The big losses will be in condos - there are more speculators in condos - and we are light in condos. We are not immune to the cycle - we just are not in that markets that will be hurt the most. David Pringel with Phelps Point Research wanted to know the impact of non-accruals on NIM? BBT: two basis points. DDAs - consumer DDAs rising and commercial is falling. Builders and title insurers have less liquidity. Betsey with Morgan Stanley - on your home equity loans - and with home prices deteriorating - do you refresh FICO scores or other examinations of those loans? BBT: We continually look at FICO and home values - but it is atypical for us to cut credit lines if loans are current. We are not having problems. Our customers are keeping their jobs - and that is where there could be risks. CMA Reports EPS of $1.17 vs. $1.20 in Q3-06 PRNewswire 10-17 Comerica reported Q3-07 income from continuing operations of $180 million [$1.17/share] compared to $196 million [$1.25/share] for Q2-07 and $195 million [$1.20/share] for Q3-06. ROE in Q3-07 was 14.38% compared to 15.41% in Q2-07 and 15.38% in Q3-06. ROA in Q3-07 was 1.23% compared to 1.35% in Q2-07 and 1.41% in Q3-06. Book value per share at the end of Q3-07 was $33.62 compared to $32.80 at the end of Q2-07 and $32.84 at the end of Q3-06. Net interest income in Q3-07 was $503 million compared to $509 million in Q2-07 and $502 million in Q3-06. The net interest margin was 3.66% compared to 3.76% in Q2-07, largely due to an increase in the investment securities portfolio and funding earning asset growth with more costly funds in a volatile capital markets environment. Average loans increased four percent, led by growth of 20% in the Texas market, 10% in the Florida market and 6% in the Western market, with the Midwest market down 2%. Total earning assets in Q3-07 was $54.641 billion earning $953 million at a yield of 6.91% compared to $54.304 billion earning $934 million at a yield of 6.89% in Q2-07. Total interest-bearing sources of fund was $41.406 billion costing $449 million at a cost of 4.29% compared to $40.157 billion costing $424 million at a cost of 4.24%. Noninterest income was $230 million compared to $225 million for Q2-07 and $195 million for Q3-06. The $5 million increase from Q2-07 reflected positive trends in commercial lending fees, letter of credit fees, foreign exchange income, brokerage fees and investment banking fees, an increase in net income (loss) from principal investing and warrants ($5 million), and securities gains of $4 million, partially offset by an $8 million decrease in deferred compensation plan asset returns. Service charges on deposit accounts was $55 million; Fiduciary income was $49 million; Commercial lending fees was $19 million; Letter of credit fees was $16 million; Foreign exchange income was $11 million; Brokerage fees was $11 million; Card fees was $14 million; Bank-owned life insurance was $8 million. Net credit-related charge-offs were $40 million, or 32 basis points as a percent of average total loans for Q3-07, compared to $30 million, or 24 basis points as a percent of average total loans for Q2-07. Nonperforming assets were 59 basis points of total loans and foreclosed property for Q3-07, and below historical averages. From the Conference Call: Gary Townsend wanted CMA to discuss their residential construction book. CMA: We have one Michigan developer with projects in Florida. Gary: Is there a problem with the builders who have Florida exposure? CMA: The Michigan portfolio - $900 million - is a small piece of our portfolio. Our local developers will do business in Michigan and elsewhere. This developer [with the problem loan] we have known well - are we are working through project with him. The property has a good location. Terry McAvoy noted CMA's 20% loan growth in Texas comp to 6% last quarter and wanted to know the cause - was it due to agressibe marketing? CMA: Our strategy is working. Being 'here' [being now based in Texas] means something. Texas has loan growth in the energy sector. And CMA is now active in non-marketing activities in Texas. To generate that 20% growth there was no strectching done in pricing. And growth was across all sectors. Top management has been active in community - and that has accelerated opportunities. Mike Mayo wanted more color on the margin outlook - you projected it to be down in Q4 - are you hurt by lower rates? CMA: There will be a positive impact from maturing swaps. Deposit environment is still very competitive - rates for deposti products are not coming down. Wholesale funding cost will increase going forward. We increased our securities portfolio - and will do more of that going forward - and that will impact margins. CRBC Reports EPS of $0.42 vs. $0.49 in Q3-06 PRNewsWire 10-18 Citizens Republic Bancorp reported Q3-07 net income of $31.8 million [$0.42/share] compared to $21.0 million [$0.49/share] in Q3-06, which does not include Republic activity for that acquisition. ROA was 0.96% compared to 1.08% in Q3-06. ROE was 8.20% compared to 12.63% for Q3-06. Book value at the end of Q3-07 was $20.65. Net interest income was $94.9 million compared with $96.8 million for Q2-07 and $65.6 million for Q3-06. Net interest margin was 3.39% compared with 3.44% for Q2-07 and 3.78% for Q3-06. Total earning assets were $11.708 billion with an average yield of 7.01%. Total interest-bearing liabilities were $10.353 billion with an average cost of 4.10%. Noninterest income was $30.6 million, a decrease of $0.7 million from Q2-07 and an increase of $7.1 million over Q3-06. Service charges on deposit accounts for Q3-07 were $12.5 million; trust fees $5.0 million; Mortgage and other loan income $2.9 million; and Brokerage and investment fees $2.1 million. Nonperforming assets totaled $191.0 million [2.06% of total loans plus other repossessed assets] at September 30, 2007, an increase from $146.4 million [1.58%] in June 30, 2007 and $40 million [0.69%] in September 30, 2006. Net charge-offs totaled $7.9 million [0.34% of average portfolio loans] in Q3-07 compared with $20.0 million [0.87% of average portfolio loans] in Q2-07 and $2.7 million [0.19% of average portfolio loans] in Q3-06. CBH Reports EPS of - $0.24 vs. + $0.41 in Q3-06 PRNewsWire 10-25 Commerce Bancorp reported a net loss of $47.9 million [- $0.24/share] compared to $79.7 million [+ $0.41/share] for Q3-06. During Q3-07 CBH transferred approximately $7.4 billion of primarily fixed-rate investment securities from its available for sale portfolio to a trading portfolio to reduce its exposure to changes in interest rates. CBH recorded a pre-tax loss of approximately $175.3 million on those and intends to sell the securities in Q4-07 and reinvest those proceeds in short-term, floating rate, AAA-rated securities. Primarily as a result of two residential development credits being moved to non-accrual status, CBH's Q3-07 provision for loan losses totaled $26.0 million, an increase of $13.5 million over Q2-07. ROE was -6.47% compared to 12.06% in Q3-06. ROA was -0.39% compared to 0.74% in Q3-06. Book value was $14.68 compared to $13.85 at the end of Q3-06. Net interest income for Q3-07 was $347.1 million [FTE net interest incomes was $354.0 million] compared to $322.0 million recorded Q3-06. The net interest margin decreased to 3.13% compared to 3.22% for Q2-07 and 3.27% for Q3-06. Total earning assets were $44.820 billion earning $688.225 million at an average yield of 6.09%. Total deposits and interest-bearing were $36.380 billion costing $334.221 at an average yield of 3.64%. Excluding net investment securities losses, non-interest income increased to $179.0 million from $150.6 million a year ago. Deposit Charges & Service Fees $120 million; Commerce Banc Insurance $21.8 million; and Commerce Capital Markets $6.9 million. Non-performing assets and loans past due 90 days at September 30, 2007 totaled $101.9 million or .20% of total assets, versus $56.9 million, or .12% of total assets, at June 30, 2007 and $47.8 million, or .11% of total assets, at September 30, 2006. Net charge-offs in Q3-07 was $9.493 million [0.23% of average loans] compared to $3.310 million [0.09% of average loans] in Q3-06. FITB Reports EPS of $0.71 vs. $0.68 in Q3-06 PRNewsWire 10-19 Fifth Third Bancorp reported Q3-07 earnings of $376 million [$0.71/share] compared with $376 million [$0.69/share] in Q2-07 and $377 million [$0.68/share] for Q3-06. ROA was 1.46% compared to 1.41% in Q3-06. ROE was 16.0% compared to 15.1% in Q3-06. Book value from Yahoo was $17.54. FTE Net interest income of $760 million was up $15 million from Q2-07. Growth was driven by a 2% increase in earning assets, wider asset spreads, and lower wholesale borrowing rates during the quarter. FTE net interest margin was 3.34% compared to 2.99% in Q3-06. Yield on interest-earning assets was 6.74% compared to 6.40% in Q3-06. Yield on interest-bearing liabilities was 4.04% compared to 4.14% in Q3-06. Noninterest income was $722 million and rose $15 million from Q2-07 on higher revenues in payment processing, deposit service charges and corporate banking, as securities gains were more than offset by a sequential reduction in mortgage banking revenue. Electronic payment processing revenue in Q3-07 was $253 million; Service charges on deposits $151 million; Investment advisory revenue $95 million; Corporate banking revenue $91 million. Net charge-offs as a percentage of average loans and leases were 60 bps in Q3-07, compared with 55 bps last quarter and 43 bps in Q3-06. NPAs at quarter end were $706 million, or 92 bps of total loans and leases and other real estate owned, up from 70 bps in Q2-07 and 56 bps in Q3-06. FITB will acquire First Charter Bank [to close in Q1-08], which operates 57 branches in North Carolina and two in Atlanta, Georgia. FITB will acquire nine branches in the Atlanta metro area from First Horizon [also to close in Q1-08]. From the Conference Call: Walgreens credit processing business added during the quarter. Credit card business up 57% over Q3-06. CNI growth 7%. DDAs up 6% - even in a tough environment. FITB added 14 net new branches in Q3 and is on pace to add net 59 in 2007. Will have one third of branches in growth markets [in Chicago and the South East] - that is double the number two years ago. Mike Mayo with Deutsche Bank noted that FITB said it had a footprint that was one third in growth markets - how do you define growth markets? FITB: Where there is population growth exceeding national averages. We want to get to a 50/50 mix in growth markets in a short period of time. Most of the current increase in the mix has been through De nova or organic expansion. Mike: Are you looking at any market outside SE and Chicago? FITB: Mid Atlantic is being looked into. Mike: Is the plan to get to that mix through acquisitions? FITB: It currently is a very challenging environment for acquisitions [problems at banks are rising while prices have been flat]. We are open to acquisitions, but we are very happy with our organic growth. Mike wanted some detail on FITB's auto loan problem. FITB: In autos - the 2005 vintages are hitting us with higher than expected delinquencies. Mike: Why? Is it customers with mortgage problems spilling over to other areas? FITB: Good questions - but we do not know what happened in 2005 to make it different. If it was spill-over - it would hit credit card debt [which has not been hurt] and other vintages of auto loans. And the car re-sale market has been weak, hurting losses on re-pos. Mike: How long does it take for auto loan to go bad? FITB: Even as short as 90 days out, loans can go delinquent. Matthew O'Conner with UBS noted that mortgage spreads had stayed wide and wondered if FITB was planning on buying more of those securities? FITB: Spreads are not where we want to see them before we would add. Mat: Is that dependent on fed? FITB: Yes - if fed cuts more, mortgage purchases would look more appetizing. Mat: Would you like to bring down the auto loan portfolio? FITB: Yes - maybe to half what it is today. John McDonald with Banc of America wanted more color on reserve builds - why was there not a growth in reserve to loan ratios? FITB: There is not a linear ratio between the two. the vast majority going into NPAs are commercial loans, and we look at past experience - especially to the last quarter - and we look at cure rates and losses. John: Is the NPA re-sale market getting better? FITB: Can't tell tell you until you put a portfolio on the market. We pulled the last group of planned NPA sales because everyone came to market at the same time - thus curring the prices. Ed Nagerian with Merrill noted that in Q3-07 commercial construction loans charge offs were down and commercial mortgage loans were down. Why low charge-offs rates? Are they being deferred? FITB: We are not deferring loss recognition. It is hard to reconcile increase in NPAs to charge offs one to one. Ed: Did additions to NPAs not come with write-downs? FITB: If we had done the planned NPA sale, then you would have seen larger charge-offs. Ed: On your De novo expansion - do you plan 50 branches in Chicago next year? FITB: There are 59 stores to open this year and 80 next year. But not 50 in Chicago only - maybe 20. There will be more branches in Florida and Tennessee. This will cost us about 2 cents in EPS dilution from expense drag. FMER Reports EPS of $0.38 vs. $0.39 in Q3-06 PRNewsWire 10-23 FirstMerit Corporation announced Q3-07 net income of $30.3 million [$0.38/share] compared with $31.2 million [$0.39/share] for Q3-06. ROE for Q3-07 was 13.71% compared with 13.93% in Q3-06. ROA was 1.16% compared with 1.22% for Q3-06. Book value/share at the end of Q3-07 was $11.00 compared to $11.28 at the end of Q3-06. FTE Net interest income $86.6 million compared with $85.6 million in Q2-07 and $85.9 million in Q3-06. Net interest margin was 3.61% for Q3-07 compared with 3.62% for Q2-07 and 3.68% for Q3-06. Total earning assets in Q3-07 were $9.513 billion earnings $164.059 million at an average yield of 6.84%. Total interest bearing liabilities in Q3-07 were $7.891 billion costing $77.477 million at an average yield of 3.90%. Total other income in Q3-07 was $49.124 million compared with $49.341 million in Q3-06. Trust department income in Q3-07 was $5.657 million; Service charges on deposits $17.003 million; Credit card fees $11.679 million; ATM and other service fees $3.306 million; Bank owned life insurance income $3.735 million; and Investment services and insurance $3.007 million. Net charge-offs totaled $7.9 million, or 0.45% of average portfolio loans, in Q3-07, $7.6 million, or 0.43% of average portfolio loans, in Q2-07 and $11.6 million, or 0.67% of average portfolio loans, in Q3-06. Nonperforming assets totaled $34.2 million [0.49% of period-end loans plus other real estate] at September 30, 2007, compared with $37.0 million [0.52% of loans and ORE] on June 30, 2007 and $72.5 million [1.05% of loans and ORE] on September 30, 2006. FULT Reports EPS of $0.09 vs. $0.28 in Q3-06 MarketWire 10-16 Fulton Financial Corporation earned $33.6 million [$0.19/share] for Q3-07 compared to xx [$0.28/share] in Q3-06. FULT recorded a $16.0 million charge related to mortgage banking operations at Resource Bank. The $16.0 million charge included $9.9 million related to two specific situations where potential misrepresentation of borrower information exists, $3.6 million related to revaluations of repurchased loans and foreclosed real estate and $2.2 million related to outstanding repurchase requests. The majority of the loss is attributable to Resource Mortgage wholesale branch offices that have been closed or sold. ROA was 0.88% compared to 1.31% in Q3-06. ROE was 8.67% compared to 13.26% in Q3-06. Book value at the end of Q3-07 was $8.96 as reported in the key stats at Yahoo. Net interest income was $122.410 million compared to $125.924 million in Q3-06. The net interest margin was 3.62% compared to 3.85% for Q3-06 and 3.70% for Q2-07. During Q3-06, $3.3 million of interest recoveries on loans added 10 basis points to net interest margin. Total Interest-earning Assets were $13,855 billion earning $242.102 million at an average yield of 6.95%. Total Interest-bearing Liabilities were $11.747 billion costing $116.330 million at an average yield of 3.93%. Other income, excluding investment securities losses and gains was $36.743 million compared to $36.912 million in Q3-06. Service charges on deposit accounts in Q3-07 was $11.293 million and Investment management and trust services $9.291 million. Non-performing assets were $107.0 million [0.69% of total assets] at September 30, 2007, compared to $46.8 million [0.31%] at September 30, 2006 and $74.1 million [0.49%] at June 30, 2007. Annualized net charge-offs were 0.08% of average total loans, compared to annualized net recoveries of 0.01% for the quarter ended September 30, 2006 and annualized net charge-offs of 0.14% for the quarter ended June 30, 2007. HBAN Reports EPS of $0.38 vs. $0.65 in Q3-06 PRNewsWire 10-18 Huntington Bancshares reported earnings of $138.2 million [$0.38/share] compared to $157.4 million [$0.65/share] in Q3-06 and compared to $80.5 million [$0.34/share] in Q2-07. Earnings were negatively impacted by $0.09/share due to merger costs associated with the acquisition of Sky Financial. Q3-06 was positively impacted by a net $0.18/share, reflecting a reduction of federal income tax expense, partially offset by the negative impacts of a securities impairment related to a balance sheet restructuring initiative. ROA was 1.02% compared to 1.75% in Q3-06. ROE was 8.80% compared to 21.0% in Q3-06. Book value at the end of Q3-07 was $17.08 [big jump due to merger] compared to $12.97 at the end of Q2-07 and $13.15 in Q3-06. FTE Total non-interest income in Q3-07 was $204.7 million compared to $97.9 million in Q3-06. Service charges on deposit accounts $78.1 million; Trust services $33.6 million; Brokerage and insurance income $28.8 million; Service charges and fees $21.0 million' Bank owned life insurance income $14.8; Securities losses $13.2 million. Total net charge-offs were $47.1 million [an annualized 0.47% of average total loans and leases] compared with $21.2 million [0.32%] in Q3-06 and $34.5 million [0.52%] in Q2-07. NPAs were $435.0 million [1.08% of related assets] at September 30, 2007, compared with $171.2 million [0.65%] at the end of Q3-06 and $261.2 million [0.97%] at the end of Q2-07. MI Reports Core EPS of $0.85 vs. $0.81 in Q3-06 PRNewsWire 10-18 Marshall & Ilsley reported core operating income of $225.3 million [$0.85/share] as compared to $210.9 million [$0.81/share] in Q3-06. On a GAAP basis, the net income was $219.9 million [$0.83/share] as compared to $238.9 million [$0.92/share] in Q3-06. The $5.4 million difference between core operating income and GAAP net income only reflects the costs associated with the transaction to separate Metavante and M&I. ROA was 1.51% compared to 1.53% in Q3-06. ROE was 13.2% compared to 14.2% in Q3-06. Book value at the end of Q3-07 was $26.45 compared to $23.51 at the end of Q3-06. FTE net interest income was $407.5 million compared to $400.5 million in Q3-06. The net interest margin was 3.10% compared to 3.29% in Q3-06. Interest Earning Assets had an average yield of 7.12%. Interest Bearing Liabilities had an average yield of 4.64%. Total core operating non-interest revenue was $545.3 million compared with $477.3 million in Q3-06. This increase included improved revenue from data processing services (Metavante) and wealth management. Data Processing Services income in Q3-07 were $375.1 million; Wealth Management $66.5 million; Service Charge on Deposits $29.3 milion; and Net Investment Securities Gains $8.9 million. Net charge-offs for the period were $26.0 million [0.23% of total average loans and leases] compared to $8.1 million [0.08% of total average loans and leases] in Q3-06. Non-performing loans and leases were 1.01% of total loans and leases at September 30, 2007, compared to 0.53% at September 30, 2006. MTB Reports EPS of $1.83 vs. $1.85 in Q3-06 PRNewsWire 10-11 M&T Bank Corporation reported net income totaled $199 million [$1.83/share] compared with $210 million [$1.85/share] in Q3-06. ROA was 1.37% compared to 1.49% in Q3-06. ROE was 12.78% compared to 13.72% in Q3-06. Book value at the end of Q3-07 was $58.40 per Yahoo stats. FTE net interest income was $473 compared to $462 million in Q3-06. The net interest margin was 3.65% compared to 3.68% in Q3-06 and 3.67% in Q2-07. Yield on average earning assets was 6.94%. Cost of interest-bearing liabilities was 3.88%. Total other income was $252.899 million compared to $273.902 million in Q3-06. Mortgage banking revenues $31.643 million; Service charges on deposit accounts in Q3-07 was $104.402 million; Trust income $38.168 million; Brokerage services income $14.978 million; and Trading account and foreign exchange gains $7,279 million. Net charge-offs of loans $22 million [.20% of average loans] compared to $17 million [0.16%] in Q3-06. Loans past due 90 days or more and accruing interest totaled $140 million at September 30, 2007, compared with $112 million a year earlier. Loans classified as nonperforming totaled $371 million [0.83% of total loans] at the end of Q3-06 compared to $180 million [0.43%] at September 30, 2006. NCC Reports EPS of $0.18 vs. $0.86 in Q3-06 PRNewsWire 10-24 National City Corporation reported net income of $106 million [$.18/share] compared to $347 million [$.60/share] for Q2-07, and $526 million [$.86/share] for Q3-06. Q3-07 results include a net loss of $152 million [$.25/share] in the mortgage banking business. ROE was 3.31% compared to 16.45% in Q3-06. ROA was 0.29% compared to 1.51% in Q3-06. Book value at the end of Q3-07 was $22.05 compared to $21.44 at the end of Q3-06. FTE net interest income was $1.1 billion, about equal to Q2-07, but down 4% from Q3-06. Net interest margin was 3.43%, down 16 basis points from Q2-07 and 30 basis points from Q3-06. Noninterest income was $624 million in Q3-07, compared to $764 million in Q2-07 and $877 million in Q3-06. Loan sale revenue was $(74) million for Q3-07, $110 million for Q2-07 and $215 million in Q3-06. Net pretax mortgage servicing right (MSR) hedging gains were $64 million in Q3-07, $10 million in Q2-07, and $9 million in Q3-06. Net charge-offs were $141 [0.54% of average loans] million in Q3-07, compared to $117 million [0.54% of average loans] in Q3-06. Nonperforming assets were $1.2 billion [1.08% of loans] at September 30, 2007 compared to $732 million [0.74% of loans] at December 31, 2006. NAL Reports EPS of $0.07 vs. $0.15 in Q3-06 Business Wire 10-30 NewAlliance Bancshares reported net income of $7.4 million [$0.07/share] lowered by two unusual items: the previously announced loss on a restructuring of its securities portfolio and a tax reserve adjustment relating back to the prior establishment of the NewAlliance Foundation in 2004. Without these two events and merger and acquisition charges, core earnings were $13.8 million [$0.13/share] compared to $11.1 million [$0.11/share] in Q2-07 and $15.099 million [$0.15/share] in Q3-06. ROA was 0.37% compared to 0.85% in Q3-06. ROE was 2.09% compared to 4.52% in Q3-06. Book value per share at the end of Q3-07 was $12.71 compared to $12.36 in Q3-06. Net interest income before provision for loan losses was $43.692 million compared to $42.537 million in Q3-06. NAL’s net interest margin increased to 2.49% compared to 2.44% for Q2-07, reflecting the benefit of restructuring its securities portfolio. NIM in Q3-06 was 2.68%. NAL’s average yield on loans was 6.13% as compared to 6.14% in Q2-07, but its yield on securities climbed to 5.14% from 4.62% for Q2-07. Average yield on interest-earning assets was 5.80% compared to 5.45% in Q3-06. Average rate paid on interest-bearing liabilities was 3.88% compared to 3.35% in Q3-06. The non-interest income increased 9.0% to $16.1 million from $14.8 million in Q2-07. Depositor service charges were $7.419 million; Loan and servicing income $.522 million; Trust fees $1.724 million; Investment and insurance fees $1.976 million; Bank owned life insurance $1.639 million; and Net (loss) gain on securities ($5.641 million). Nonperforming assets were $19.547 million [0.92% of total loans or 0.24% of assets] compared to $10.777 million [1.00% of loans or 0.15% of assets] in Q3-06. Net charge-offs were $423,000. NTRS Reports EPS of $0.93 vs. $0.74 in Q3-06 PRNewsWire 10-17 Northern Trust Corporation reported record net income of $208.3 million [$.93/share] compared to $163.7 million [$.74/share] in Q3-06. ROE was 19.5% compared to 16.96% in Q3-06. ROA was 1.35% compared to 1.23% in Q3-06. Book Value at the end of Q3-07 was $19.82 compared to $18.06 in Q3-06. FTE Net interest income totaled $228.4 million, up 15% from $198.5 million reported in Q3-06. The net interest margin equaled 1.69%, down from 1.73% in Q3-06. Total Noninterest Income was $664.1 million compared to $551.1 million in Q3-06. Total fee-related income represented 74% of revenues. Trust, Investment and Other Servicing Fees were $508.8 million in Q3-07 with the largest componesnts of that being [1] corporate & Institutional Services $282.0 million; [2] Securities lending fees $33.0 million; and [3] Fees from asset management $72.8 million. Other components of noninterest income were Foreign Exchange Trading Income $91.9 million; Security Commissions & Trading Income $18.2 million; and Treasury Management Fees $16.1 million. Net charge-offs totaled $2.0 million compared with $.1 million in Q3-06. Nonperforming loans totaled $23.4 million [.09% of total loans] at September 30, 2007, compared with $26.8 million at June 30, 2007 and $32.1 million at September 30, 2006. ONB Reports EPS of $0.34 vs. $0.32 in Q3-06 Prime NewsWire 10-29 Old National Bancorp reported earnings of $22.6 million [$.34/share] compared to $21.014 million [$.32/share] in Q3-06. ROE was 14.22% compared to 12.30% in Q2-07. ROA was 1.15% compared to 0.96% in Q2-07. Book Value at the end of Q3-07 was $9.78 compared to $9.68 at the end of Q3-06. FTE net interest income was $59.5 million and represented a net interest margin of 3.37% compared to $58.6 million and a margin of 3.20% for Q2-07 and $57.094 million in Q3-06. Interest recoveries on loans positively impacted the net interest margin by six basis points and nine basis points, respectively, for Q2 and Q3-07. Total fees, service charges and other revenue totaled $37.9 million, a $2.0 million increase from Q3-06 and a $1.1 million decrease from Q2-07. Improved performance from service charges on deposit accounts and investment product fees provided the majority of the increase from the third quarter of last year while the seasonal drop in insurance premiums and commissions contributed to most of the decline from Q2-07. Net Charge-Off Ratio was .28% of loans compared to .39% of loans in Q3-06. Non-Performing Loans $49.3 million [1.04% of ending loans] compared to 0.95% of loans in Q3-06. SNV Reports EPS of $0.43 vs. $0.47 in Q3-06 Business Wire 10-25 Synovus reported net income of $142. million [$0.43/share] compared to $154.1 million [$0.47/share] in Q3-06. The Q3-007 results include $5.6 million (net of income taxes and minority interest) in expenses related to the intended distribution of Synovus’ ownership interest in TSYS to Synovus’ shareholders in a spin-off transaction. Excluding these expenses, diluted earnings per share $0.45 while net income was $147.7 million. ROA was 1.70% compared to 2.00% in Q3-06. ROE was 14.02% compared to 17.63% in Q3-06. Book value per share at the end of Q3-07 was $12.37 compared to $10.97 at the end of Q3-06. FTE Net Interest Income was $295.401 million compared to $294.011 million in Q3-06. The net interest margin was 4.02% compared to 4.30% in Q3-06. Total Interest Earning Assets $29.263 billion at an average yeild of 7.78%. Total Interest Bearing Liabilities were $24.885 billion at an average yield of 4.43%. Total Non-Interest Income was $106.194 million compared to $527.940 million in Q3-06. Electronic Payment Processing Services $28.736 million; Fiduciary and Asset Management Fees $12.524 million; Brokerage and Invesment Banking Revenue $8.123 million; Mortgage banking income 5.955 million; and Bankcard Fees $11.923 million. TSYS reported net income of $68.8 million compared to $54.3 million in Q3-06, a 26.7% increase. Diluted earnings per share for the quarter increased to $0.35, up from $0.28 last year, a 26.5% increase. During the quarter, TSYS signed new agreements with Discover Financial Services, Nationwide, the world’s largest Building Society, and Tinkoff Credit Systems, a Moscow-based consumer lending bank. The ratio of nonperforming assets to loans and other real estate was 1.16%, compared to 0.87% last quarter and 0.52% in the third quarter of last year. The net charge-off ratio for the quarter was 0.51% compared to 0.25% last quarter and 0.20% in the third quarter of last year. The allowance for loan losses was 1.38% of loans, compared to 1.30% last quarter and 1.32% in the third quarter last year. The provision for loan losses covered net charge-offs by 1.78x for the quarter. SUSQ Reports EPS of $0.38 vs. $0.49 in Q3-06 Business Wire 10-23 Susquehanna Bancshares announced net income of $19.9 million [$0.38/share] compared to $25.2 million [$0.49/share] for Q3-06. Results for Q3-06 included a pre-tax loan securitization gain of $8.2 million. ROA was 0.93% compared to 1.05% in Q3-06. ROE was 8.39% compared to 9.73% in Q3-06. Book Value per share at the end of Q3-07 was $18.05 compared to $17.92 at the end of Q3-06. Net interest income was $66.074 million compared to $67.131 million in Q3-06. Net interest margin decreased 12 basis points to 3.64% compared to 3.76% for Q3-06. Total interest-earning assets were $7.290 billion earning $128.538 million at an average yield of 6.99%. Total interest-bearing liabilities were $6.400 billion earning $61.627 milllion at an average yield of 3.82%. Total noninterest income was $30.290 million compared to $39.080 million in Q3-06 [These was a fall of 7.798 million in 'gain on sale of loans and leases' between these quarters. Service charges on deposit accounts were $7.378 million; Vehicle origination, servicing, and securitization fees $3.658 million; Asset management fees $5.235 million; Income from fiduciary-related activities $1.594 million; Commissions on brokerage, life insurance and annuity sales $1.239 million; Commissions on property and casualty insurance sales $2.556 million; and Income from bank-owned life insurance $2.765 million. Net charge-offs were $5.598 million [0.39% of average loans and leases] compared to $4.277 million [0.08%] for Q3-06. Total nonperforming assets were $38.754 million [0.66% of loans and leases] compared to $25.556 million [0.46% of loans and leases] at the end of Q3-06. USB Reports EPS of $0.67 vs. $0.66 in Q3-06 PRNewswire 10-16 U.S. Bancorp reported net income of $1.176 billion for Q3-07, compared with $1.203 billion for Q3-06. Diluted earnings per common share were $.67 in Q3-07 compared to $0.66 in Q3-06. Return on average assets and return on average common equity were 2.09% and 23.3% for Q3-07, compared with returns of 2.23% and 23.6%, respectively, for Q3-06. Book value from Yahoo at the end of Q3-07 was $11.46. FTE net interest income was $1.685 billion in Q3-07 compared with $1.673 billion in Q3-06. Average earning assets for the period increased over Q3-06 by $7.7 billion (4.1%), primarily driven by an increase of $6.0 billion (4.3%) in average loans. The net interest margin in Q3-07 was 3.44%, compared with 3.56% in Q3-06, reflecting the competitive environment and the impact of a flat yield curve during the past several quarters. Since Q3-06, credit spreads have tightened by approximately 5 basis points across most lending products due to competitive loan pricing. In addition, funding costs have increased as rates paid on interest-bearing deposits have risen and USB's funding mix continues to shift toward higher cost deposits and other funding sources. Net interest margin was also impacted by a decline in net free funds due to a decline in noninterest-bearing deposits, investment in bank-owned life insurance, share repurchases and the impact of acquisitions. An increase in loan fees from a year ago partially offset these factors. Noninterest income growth was driven primarily by organic business growth in fee-based revenue. This growth in noninterest income was muted somewhat by adverse market conditions experienced during the third quarter of 2007. These market factors reduced trading and other revenue by approximately $21 million from a year ago. Net charge-offs in Q3-07 were $199 million, compared with Q2-07 net charge-offs of $191 million and Q3-06 net charge-offs of $135 million. Nonperforming assets increased $76 million (13.5%) during the third quarter of 2007. This increase reflected stress in the mortgage lending and homebuilding industries and was primarily due to two mortgage banking customers that declared bankruptcy during the quarter and continued stress in construction lending. Total nonperforming assets were $641 million at September 30, 2007, compared with $565 million at June 30, 2007, and $575 million at September 30, 2006. The ratio of the allowance for credit losses to nonperforming loans was 441% at September 30, 2007, compared with 503% at June 30, 2007, and 476% at September 30, 2006. From the Conference Call: In a response to a question by Mike Mayo with Deutche Bank, USB said that credit card losses traditionally in Q3 is low because people are improving their balance sheets to prep for the holiday borowing season. Charge-offs were 3.09% - charge-offs were at 4% run rate prior to bankrupcy reform. USB has a high concentration of prime credit cards - and they are perfroming well - the consumer held up strong. John McDonald of Banc of America asked what drove mortgage revenues. USB: Our hedging component was neutral. During the quarter there was a flight to quality. So there was activity - our mortgage group is having a solid year. We were ranked 23rd. We like the business. The vast majority is via agency credit purchases - but there were some jumbos. John asked about USB's remaining exposure to mortgage lendings and buildings. USB: We have $1.4 billion in mortgage lending and $4 billion of residential construction - of which $1 billion is condos and the condo portfolio is under stress. But it is not concentrated in any one market. Our geographic diversification will serve us well. Mat O'Connor with UBS asked how could margins be stable despite higher liability costs. USB: Because we had growth in higher yielding assets - credit cards debt would be an example. Manual Rameriz with KBW noted that USB's loan to reserve ratio drifted down, while the NPAs were rising slightly. USB: We are not at that point yet to get inflection point. Our loan mix is towards high quality - and we have unallocated loss reserves. We have a fortress balance sheet. At this point in time, we do not see any event that will cause an increase. We have strong NPA coverage. We look at this every quarter. We are adequately reserved. Tod Hagerman with Credit Suisse wanted info on one large project that went into the NPAs in Q3. USB: We are relationship lender - this is third loan to to that lender who has a good history with us. They have incentives to work with us. This lender has other properties in which we could take an equity position to shore up the problem loan. And they want to maintain a good relationship with our bank. Lori Applebaum with Goldman asked if the loss rate on cards had improved. USB: Yes. Lori: Are there slightly higher delinquencies? USB: Yes. Q3 loss performance has always improved. We do not know why it has not returned to 4% [the level pre-bankrupcy reform] but we believe it will get there. VLY Reports EPS of $0.30 vs. $0.36 in Q3-06 PRNewsWire 10-17 Valley National Bancorp reported net income of $36.5 million [$0.30/share] compared to $43.9 million [$0.36/share] for Q3-06. The net income for Q3-06 included an $11.2 million reduction in income tax expense [$0.09/share]. ROA was 1.19% compared to 1.42% in Q3-06. ROE was 15.66% compared to 18.43% in Q3-06. Book value at the end of Q3-07 was $7.86 compared to $8.00 at the end of Q3-06. FTE Net interest income $96.6 million compared to $97.557 million in Q3-06. FTE Net interest margin was 3.43%, 2 basis points less than Q2-07, primarily due to higher funding costs related to an increase in average time deposit balance - and compared to 3.44% in Q3-06. The yield on average interest earning assets increased by 8 basis points for the second consecutive quarter mainly due to a 5 basis point increase in yield on average total loans and a 13 basis point increase in the yield on average total investments as compared to Q2-07. The cost of average interest bearing liabilities also increased 8 basis points from Q2-07, mainly due to an increase of 13 basis points in the cost of time deposits. Total interest earning assets were $11.285 billion earning $184.670 million at an average yield of 6.55%. Total interest bearing liabilities were $9.380 billion costing $88.020 million at an average yield of 3.75%. Total non-interest income was $19.972 million compared to $13.504 million in Q3-06. Service charges on deposit accounts were $7.133 million; Bank owned life insurance $3.239 million; Trust and investment services $1.897 million; and Insurance premiums $2.509 million. Net loan charge-offs were $2.9 million [0.12% of loans] compared to $3.1 million [0.09% of loans] for Q2-07. Non-performing assets totaled $32.3 million [0.39 percent of loans] at September 30, 2007 compared to $30.9 million [0.38 percent of loans] at June 30, 2007. WL Reports EPS of $0.67 vs. $0.07 in Q3-06 Business Wire 10-19 Wilmington Trust Corporation reported net income for Q3-07 of $46.2 million [$0.67/share]. ROA in Q3-07 was 1.67% compared to 0.20% in Q3-06. ROE in Q3-07 was 16.85% compared to 1.91% in Q3-06. Average stockholders' equity at the end of Q3-07 was $16.85 compared to $17.51 at the end of Q2-07 and $1.91 [and that is not a typo error on my part] at the end of Q3-06. Net interest income was $94.1 million compared to $93.0 million in Q3-06. The net interest margin for Q3-07 was 3.73%, the same as for Q2-07. The margin was stable mainly because a 4-basis-point increase in the yield on consumer loans helped offset a 3-basis-point decrease in the yield on commercial loans. On the liability side of the equation, a 9-basis-point decline in the cost of short-term borrowings helped offset a 3-basis-point increase in the rate on core interest-bearing deposits. Total earning assets had an average yield of 7.23% compared to 7.21% in Q3-06. Total interest-bearing deposits had an average cost of 3.67% compared to 3.47% in Q3-06. Total noninterest income in Q3-06 was $94.8 million compared to $96.9 million in Q2-07 and $84.6 million in Q3-06. Trust and investment advisory fees in Q3-07 were $40.5 million; Mutual fund fees $5.3 million; Planning and other services $10.3 million; Capital markets services $10.2 million; Entity management services $7.4 million; and Service charges on deposit accounts $7.2 million. Net charge-offs in Q3-07 were $4.8 million [6 bps] compared to $3.5 million [4 bps] in Q2-07 and $7.3 million [9 bps] in Q3-06. Nonaccruing loans or NPAs in Q3-07 were $54.1 million [88 bps] compared to $45.3 million [55 bps] in Q2-07 and $32.0 million [47 bps] in Q3-06. Ratings & Dividend Changes On 10-24 JP Morgan Upgraded FMER from Underweight to Neutral. On 10-19 MI declared a dividend of $0.31/share payable on December 14, 2007, to shareholders of record at the close of business on November 30, 2007. On 10-18 CRBC declared a dividend of $0.29/share payable on Nov. 15, to shareholders of record on Nov. 1. On 10-19 WL declard a dividend of 33.5/share to be paid Nov. 15 to shareholders of record on Nov. 1. On 10-24 ASBC declared a dividend of 31 cents, payable Nov. 15 to shareholders of record at the close of business on Nov. 6. On 10-24 ONB declared a dividend of $.22/share payable December 17, 2007, to shareholders of record December 3, 2007. On 9-07 Bernstein Upgraded FITB from Underperform to Market Perform. On 9-12 Credit Suisse Initiated BBT at Outperform. On 9-14 Keefe Bruyette Upgraded FITB from Underperform to Market Perform. On 9-19 Lehman Brothers Upgraded ASBC from Underweight to Equal-weight. On 9-27 Bernstein Initiated USB at Outperform. On 9-28 Keefe Bruyette Upgraded SNV from Market Perform to Outperform. On 9-05 SNV declared a dividend of 20.5 cents/share payable Oct. 1 to shareholders of record Sept. 20. On 9-18 USB declared a dividend of $0.40/share payable October 15 to shareholders of record at the close of business on September 28, 2007. Home Page Factoids Previous Update |