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Factoids Yahoo Banks Excite Banks Banking News Bankstocks.com 2007 Updates Oct Sept Aug Jul Jun May Apr Mar Feb Jan 2006 Updates Dec Nov Oct Sept Aug July Jun6 May April 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 |
Using the Forecaster Model In 2006, geography was destiny - and the metrics were misleading. It was a winning strategy to 'avoid' California and Oregon and 'buy' Texas and Oklahoma. The stocks that the analyst liked did not out-'total return' the stocks the analysts did not like. The low yielders failed to out-return the high yielders. Nor was buying the high P/E stocks or high Price/Book stocks a winning strategy. In a sector where the dividend payout ratio varies from 21% to 80%, it is not a surprise that the dividend discount model fails to be predictive. This sector sells at a fairly consistent P/E ratios despite wide variations in CAGRs. That is not logical. And the CAGRs also fail to be predictive of the stocks with high price to book ratios. That is not logical. I am not giving up hope that this sector can be forecasted. But my readers should be pessimestic about the predictions in the forecaster spreadsheet until it shows more signs of some success. This is the link to the 2006 stats for this sector, showing the projections based on 2006 begining of the year stats - along with the 2006 returns in the 'forecasting' spreadsheet which is the last of five spreadsheet posted - or roughly in the middle of the long page. Stats on CATY Earnings per share was $0.68 compared to $0.60 in Q3-06. 2006 diluted earnings per share was $2.27 compared with $2.05 in 2005, and $1.72 in 2004. ROA was 1.46% for Q3-07 compared to 1.40% for Q2-07 and 1.60% for Q3-06. ROA was 1.40% for Q2-07 compared to 1.45% for Q1-07 and compared 1.59% for Q2-06. ROA was 1.45% for Q1-07 compared to 1.67% for Q1-06. ROA was 1.54% for Q4-06, compared to 1.60% for Q3-06 and 1.70% Q4-05. ROE was 14.45% for Q3-07 compared to 13.13% for Q2-07 and 13.76% for Q3-06. ROE was 13.13% for Q2-07 compared to 12.87% for Q1-07 and 13.70% for Q2-06. ROE was 12.87% Q1-07 compared to 14.06% for Q1-06. ROE was 13.03% for Q4-06 compared to 13.76% for Q3-06 and 13.93% for Q4-05. Book value per share per Yahoo! was $19.05. At the end of Q3-07, Total liabilities and stockholders’ equity was $948.919 million and there were 49,813,181 shares outstanding. [$19.04 calculated book value.] At the end of Q2-07, Total liabilities and stockholders’ equity was $916.942 million and there were 49,963,215 shares outstanding. [$18.35 calculated book value.] At the end of Q1-07, Total liabilities and stockholders’ equity was $938.638 million and there were 51,154,356 shares outstanding.[$18.35 calculated book value.] At the end of Q4-06, Total liabilities and stockholders’ equity was $943.074 million and there were 51,930,955 shares outstanding.[$18.16 calculated book value.] At the end of Q3-06, Total liabilities and stockholders’ equity was $902.810 million and there were 51,548,829 shares outstanding.[$17.51 calculated book value.] CAGRs: Forward = 10.00% Historical = 13.10% Divs by year: 2007 0.09 / 0.105 / 0.105 / 0.105 2003 0.007 / 0.070 / 0.070 / 0.070 2006 0.09 / 0.090 / 0.090 / 0.090 2002 0.625 / 0.070 / 0.070 / 0.070 2005 0.09 / 0.090 / 0.090 / 0.090 2001 0.625 / 0.625 / 0.625 / 0.625 2004 0.07 / 0.070 / 0.070 / 0.090 Net interest income was $79.8 million compared to $70.7 million during Q3-06 and $61.058 million in Q3-05. Q2-07 was $74.397 million compared to $69.550 million in Q2-06. Q1-07 was $71.752 million compared to $63.641 million in Q1-06. Q4-06 was $72.4 million compared to $62.4 million in Q4-05.. Non-interest income was $8.9 million compared to $5.404 million for Q3-06 and 5.853 million in Q3-05, Q2-07 was $6.162 million compared to $5.751 million in Q2-06, Q1-07 was $5.884 million compared to $5.075 million in Q1-06, Q4-06 was $5.23 million compared to $5.18 million in Q4-05. FTE net interest margin was 3.69% for Q3-07 compared to 3.78% in Q2-07 and 4.06% in Q3-06. The FTE yield on average interest-earning assets was 7.34% and the cost of funds on average interest-bearing liabilities equaled 4.24%. Net interest margin in Q2-07 was 3.78% compared to 4.27% in Q2-06. The FTE yield on average interest-earning assets was 7.26% and the cost of funds on average interest-bearing liabilities equaled 3.32%. The net interest margin in Q1-07 was 3.83% compared to 4.33% in Q1-06. The FTE yield on average interest-earning assets was 7.44% and the cost of funds on average interest-bearing liabilities equaled 4.27%. FTE net interest margin 4.01% for Q4-06 compared to 4.06% in Q3-06 and 4.34% in Q4-05. Non-performing assets to gross loans and other real estate owned was 0.79% at September 30, 2007, compared to 0.61% at June 30, 2007, 0.63% at March 31, 2007, and 0.62% at December 31, 2006. Stats on EWBC Diluted earnings per share for Q3-07 was $0.67, up from $0.58 in Q3-06. Diluted earnings per share for 2006 was $2.35, $1.97 in 2005, $1.49 in 2004, $1.19 in 2003. ROE totaled 15.19% in Q3-07, in Q2-07 was 15.53%, in Q1-07 was 16.48%, in Q4-06 was 15.72%, in Q3-06 was 14.94%, in Q2-06 was 15.98%, in Q1-06 was 16.72% in Q4-05 was 17.36%, and in Q3-05 was 14.22%. ROA totaled 1.48%, in Q2-07 was 1.52%, in Q1-07 was 1.57%, in Q4-06 was 1.45%, in Q3-06 was 1.38%, in Q2-06 was 1.53%, in Q1-06 was 1.50%, in Q4-05 was 1.52%, in Q3-05 was 1.74%. Book value per share at the end of Q3-07 was $18.70 Book value at the end of Q2-07 was $17.34 per share. Book value at the end of Q1-07 was $17.04 per share, at the end of Q4-06 was $16.59 per share, at the end of Q3-06 was $16.03 per share, at the end of Q2-06 was $15.41 per share, at the end of Q1-06 was $14.91 per share, and at the end of Q4-05 was $12.99 per share. CAGRs: Forward = 10.20% Historical = 09.80% Divs by year: 2007 0.10 / 0.10 / 0.10 / 0.10 2003 0.050 / 0.050 / 0.050 / 0.050 2006 0.05 / 0.05 / 0.05 / 0.05 2002 0.034 / 0.034 / 0.034 / 0.034 2005 0.05 / 0.05 / 0.05 / 0.05 2001 0.015 / 0.015 / 0.015 / 0.015 2004 0.05 / 0.05 / 0.05 / 0.05 Net interest income for Q3-07 was $103.9 million, for Q2-07 was $98.9 million, for Q1-07 was $98.6 million, for Q4-06 was $97.4 million, for Q3-06 was $95.4 million, for Q2-06 was $91.6 million, for Q1-06 was $83.0 million, and for Q4-05 was $81.4 million. Noninterest income for Q3-07 was $14.0 million, for Q2-07 was $10.8 million, for Q1-07 was $12.5 million, for Q4-06 was $9.3 million, for Q3-06 was $8.1 million, for Q2-06 was $8.1 million, for Q1-06 was $8.9 million, and for Q4-05 was $7.4 million. Net interest margin in Q3-07 was 3.95%. The yield on average loans receivable for the quarter was 7.86%, an increase of 26 basis points from Q3-06. NIM in Q2-07 was 3.97%. The yield on average loans receivable for the quarter was 7.87%. NIM in Q1-07 was 3.95%. The yield on average loans receivable for the quarter was 7.84%. NIM in Q4-06 was 3.81%. The yield on average loans receivable for the quarter was 7.73%. NIM in Q3-06 was 3.89%. The yield on average earning assets for the quarter was 7.22%. NIM in Q2-06 was 4.08%. The yield on average earning assets for the quarter was 7.09%. NIM in Q1-06 was 4.18%. The yield on average earning assets for the quarter was 6.90%. NIM in Q4-05 was 4.20%. The yield on average earning assets for the quarter was 6.54%. Total nonperforming assets as of September 30, 2007 were $43.4 million or 0.37% of total assets, compared to $19.9 million, or 0.18% of total assets at December 31, 2006. Total nonperforming assets as of June 30, 2007 were $24.4 million or 0.23% of total assets. Total nonperforming assets as of March 31, 2007 were $15.6 million or 0.15% of total assets. Total nonperforming assets as of December 31, 2006 were $19.9 million, or 0.18% of total assets. Total nonperforming assets as of September 30, 2006 were $13.5 million or 0.12% of total assets. Total nonperforming assets as of June 30, 2006 were $10.5 million or 0.11% of total assets. Total nonperforming assets as of March 31, 2006 were $13.8 million or 0.15% of total assets. Total nonperforming assets as of December 31, 2005 were $30.1 million or 0.36% of total assets. Stats on FCBP EPS for 2006 was $3.21/share, $2.98/share for 2005, $2.27/share for 2004, $2.02 in 2003. ROA in Q3-07 was 1.72%, 1.75% in Q2-07, 2.10% in Q1-07, 1.73% in Q4-06, 1.87% in Q3-06, 1.39% in Q2-06, 1.92% in Q1-06, 1.87% in Q4-06, 1.71% in Q3-06. ROE in Q3-07 was 7.31%, 7.61% in Q2-07, 9.91% in Q1-07, 8.32% in Q4-06, 9.62% in Q3-06, 7.49% in Q2-06, 12.15% in Q1-06, 12.50% in Q4-06, 12.46% in Q3-06. Book value per share at the end of Q3-07 was $40.49, $40.55 at the end of Q2-07, $39.76 at the end of Q1-07, $39.42 at the end of Q4-06, $35.80 at the end of Q3-06, $35.30 at the end of Q2-06, $30.40 at the end of Q1-06, $27.30 at the end of Q4-05, $25.80 at the end of Q3-05. CAGRs: Forward = 07.40% Historical = 05.30% Divs by year: 2007 0.32 / 0.32 / 0.32 / 0.32 2003 0.150 / 0.150 / 0.188 / 0.188 2006 0.25 / 0.32 / 0.32 / 0.32 2002 0.090 / 0.150 / 0.150 / 0.150 2005 0.22 / 0.25 / 0.25 / 0.25 2001 0.090 / 0.090 / 0.090 / 0.090 2004 0.188/ 0.22 / 0.22 / 0.22 NIM in Q3-07 was 6.44%, 6.47% in Q2-07, 6.33% in Q1-07, 6.52% in Q4-06, 6.60% in Q3-06, 6.79% in Q2-06, 6.82% in Q1-06, 6.85% in Q4-05, 6.40% in Q3-05. Average earning assets yield was 8.50% in Q3-07, 8.43% in Q2-07, 8.44% in Q1-07, 8.29% in Q3-06, 8.30% in Q2-06, 8.16% in Q1-06, 7.85% in Q4-05, 7.33% in Q3-05. Average interest-bearing liabiities cost was 3.40% in Q3-07, 3.30% in Q2-07, 3.41% in Q1-07, 2.91% in Q3-06, 2.60% in Q2-06, 2.28% in Q1-06, 1.77% in Q4-05, 1.63% in Q3-05. Net interest income totaled $66.3 million for Q3-07, $66.5 million for Q2-07, 69.435 million for Q1-07, $70.222 million in Q4-06, $61.7 million for Q3-06, $58.038 million in Q2-06, $62.194 million in Q1-06, $46.858 million in Q4-05, $40.8 million in Q3-05. Noninterest income totaled $5.7 million for Q3-07, $7.5 million in Q2-07, $14.351 million in Q1-07, $xx.xxx million in Q4-06, $4.6 million in Q3-06, $4.291 million in Q2-06, $3.705 million in Q1-06, $3.5 million in Q4-05, $3.5 million in Q3-05. Nonperforming assets to total loans, including loans held for sale, and ORE at the end of Q3-07 was 0.60%, 0.63% at the end of Q2-07, 0.71% at the end of Q1-07, 0.51% at the end of Q4-06, 0.59% at the end of Q3-06, 0.45% at the end of Q2-06, 0.41% at the end of Q1-06, 0.34% at the end of Q4-05. Stats on GBCI EPS for 2006 was $1.21/share, $1.09/share for 2005, [pre-split it was 1.64] $1.43/share [there was a split] for 2004 [WSJ cites $0.96/share. $0.83 in 2003 and $0.72 in 2002]. ROA in Q3-07 was 1.50%, 1.47% in Q2-07, 1.48% in Q1-07, 1.51% in Q4-06, 1.58% in Q3-06, 1.52% in Q2-06, 1.48% in Q1-06, 1.53% in Q4-05, 1.52% in Q3-05. ROE in Q3-07 was 13.76%, 13.79% in Q2-07, 14.02% in Q1-07, 15.01% in Q4-06, 16.24% in Q3-06, 16.18% in Q2-06, 16.21% in Q1-06, 17.47% in Q4-05, 17.88% in Q3-05. Book value per share at the end of Q3-07 was $9.61, $9.34 at the end of Q2-07, $8.97 at the end of Q1-07, $8.72 at the end of Q4-06, $8.09 at the end of Q3-06, $7.25 at the end of Q2-06, $7.11 at the end of Q1-06, $6.91 at the end of Q4-05, $10.36 at the end of Q3-05. CAGRs: Forward = 10.00% Historical = 14.60% Divs by year: 2007 0.12000/ 0.12000/ 0.12000/ 0.13000 2003 0.06982 / 0.00000 / 0.08170 / 0.08533 2006 0.10667/ 0.10667/ 0.10667/ 0.11333 2002 0.05818 / 0.06206 / 0.06206 / 0.06594 2005 0.09067/ 0.09600/ 0.10000/ 0.10000 2001 0.05818 / 0.05818 / 0.05818 / 0.05818 2004 0.08533/ 0.08960/ 0.09067/ 0.09067 NIM in Q3-07 was 4.50%, 4.36% in Q2-07, 4.36% in Q1-07, 4.40% in Q4-06, 4.28% in Q3-06, 4.34% in Q2-06, 4.39% in Q1-06, 4.28% in Q4-05, 4.24% in Q3-05. Net interest income totaled $46.983 million for Q3-07, $45.196 million for Q2-07, $43.091 million for Q1-07, $45.349 million in Q4-06, $39.005 million for Q3-06, $37.626 million in Q2-06, $36.308 million in Q1-06, $35.704 million in Q4-05, $33.760 million in Q3-05. Noninterest income totaled $16.478 million for Q3-07, $16.411 million in Q2-07, $15.692 million in Q1-07, $14.026 million in Q4-06, $13.762 million in Q3-06, $12.898 million in Q2-06, $11.156 million in Q1-06, $11.669 million in Q4-05, $12.336 million in Q3-05. Nonperforming assets in Q3-07 were $11.722 million [0.24% of bank assets], $11.980 million [0.25% of bank assets] in Q2-07, $11.306 million [0.25% of bank assets] in Q1-07, $8.894 million [0.19% of bank assets] in Q4-06, $9.505 million [0.22% of bank assets] in Q3-06, $8.943 million [0.23% of bank assets] in Q2-06, $10.325 millon [0.27% of bank assets] in Q1-06 Stats on UCBH EPS for 2006 was $1.03/share, $1.02/share for 2005, $0.90/share for 2004 $0.71/share for 2003. ROA in Q3-07 was 1.15%, 1.10% in Q2-07, 1.09% in Q1-07, 1.25% in Q4-06, 1.24% in Q3-06, 1.25% in Q2-06, 1.18% in Q1-06, 1.31% in Q4-05, 1.24% in Q3-05. ROE in Q3-07 was 13.37%, 12.90% in Q2-07, 13.43% in Q1-07, 15.35% in Q4-06, 15.51% in Q3-06, 16.20% in Q2-06, 15.36% in Q1-06, 17.41% in Q4-05, 15.51% in Q3-05. Book value per share at the end of Q3-07 was $9.06, $8.70 at the end of Q2-07, $8.22 at the end of Q1-07, $7.90 at the end of Q4-06, $6.80 at the end of Q3-06, $6.77 at the end of Q2-06, $6.57 at the end of Q1-06, $6.40 at the end of Q4-05, $5.96 at the end of Q3-05. CAGRs: Forward = 11.16% Historical = 07.80% Divs by year: 2007 0.030 / 0.030 / 0.030 / 0.030 2003 0.01250 / 0.0150 / 0.0150 / 0.0150 2006 0.030 / 0.030 / 0.030 / 0.030 2002 0.01250 / 0.0125 / 0.0125 / 0.0125 2005 0.025 / 0.025 / 0.025 / 0.025 2001 0.00875 / 0.0100 / 0.0100 / 0.0100 2004 0.020 / 0.020 / 0.020 / 0.020 FTE NIM in Q3-07 was 3.44%, 3.35% in Q2-07, 3.26% in Q1-07, 3.34% in Q4-06, 3.43% in Q3-06, 3.50% in Q2-06, 3.54% in Q1-06, 3.62% in Q4-05, 3.58% in Q3-05. Net interest income totaled $80.914 million for Q3-07, $76.637 million for Q2-07, 72.782 million for Q1-07 and $65.188 million for Q3-06, $64.829 million in Q4-06, $65.118 million in Q3-06, $64.801 million in Q2-06, $65.273 million in Q1-06, $62.131 million in Q4-05, $60.221 million in Q3-05. Noninterest income totaled $10.822 million for Q3-07, $9.924 million in Q2-07, $12.445 million in Q1-07, $11.969 million in Q4-06, $10.968 million in Q3-06, $10.968 million in Q2-06, $14.077 million in Q1-06, $8.407 million in Q4-05, $4.563 million in Q3-05. NPAs as of Sept 30 2007 were $36.9 million [0.33%]; as of June 30 2007 were $34.3 million [0.32%]; as of March 31 2007 were $24.7 million [0.24%]; as of Dec 31 2006 were $15.2 million [0.15%] as of Sept 30 2006 were $10.2 million [0.12%] Q3-07 equity = $941.678 million / 103,920,862 shares = 9.06 / Q2-07 equity = $903.093 million / 103,774,238 shares = 8.70 Q1-07 equity = $821.501 million / 99,900,138 shares = 8.22 / Q4-06 equity = $786.071 million / 99,448,181 shares = 7.90 Q3-06 equity = $675.276 million / 97,978,652 shares = 6.89 / Q2-06 equity = $639.749 million / 94,479,237 shares = 6.77 Q1-06 equity = $618.926 million / 94,237,687 shares = 6.57 / Q4-05 equity = $603.514 million / 94,307,878 shares = 6.40 Q4-05 equity = $547.597 million / 91,885,431 shares = 5.96 Stats on WABC EPS for 2006 was $3.11/share, $3.22/share for 2005, $2.87/share for 2004, $2.85 in 2003. ROA in Q3-07 was 1.89%, 1.92% in Q2-07, 2.03% in Q1-07, 1.98% in Q4-06, 1.98% in Q3-06, 1.99% in Q2-06, 2.10% in Q1-06, 2.11% in Q4-05, 2.23% in Q3-05. ROE in Q3-07 was 21.7%, 21.9% in Q2-07, 23.0% in Q1-07, 22.8% in Q4-06, 22.7% in Q3-06, 23.1% in Q2-06, 24.9% in Q1-06, 25.5% in Q4-05, 27.0% in Q3-05. Book value per share at the end of Q3-07 was $13.74, $13.72 at the end of Q2-07, $13.92 at the end of Q1-07, $13.89 at the end of Q4-06, $13.81 at the end of Q3-06, $13.57 at the end of Q2-06, $13.67 at the end of Q1-06, $13.65 at the end of Q4-05, $13.68 at the end of Q3-05. CAGRs: Forward = 05.88% Historical = 05.50% Divs by year: 2007 0.340 / 0.340 / 0.340 / 0.340 2003 0.2400 / 0.240 / 0.260 / 0.260 2006 0.320 / 0.320 / 0.320 / 0.340 2002 0.2200 / 0.220 / 0.220 / 0.240 2005 0.300 / 0.300 / 0.300 / 0.320 2001 0.1900 / 0.210 / 0.210 / 0.210 2004 0.260 / 0.280 / 0.280 / 0.280 NIM in Q3-07 was 4.34%, 4.36% in Q2-07, 4.41% in Q1-07, 4.49% in Q4-06, 4.54% in Q3-06, 4.58% in Q2-06, 4.73% in Q1-06, 4.80% in Q4-05, 4.76% in Q3-05. Yield on earning assets Q3-07=6.14% - Q2-07=6.12% - Q1-07=6.11% Q4-06=6.07% Q3-06=6.05% Q2-06=6.01% Cost of funds Q3-07=1.80% - Q2-07=1.77% - Q1-07=1.70% Q4-06=1.58% Q3-06=1.51% Q2-06=1.44% Net interest income totaled $45.563 million for Q3-07, $46.059 million for Q2-07, 46.914 million for Q1-07 $49.029 million in Q4-06, $50.198 million in Q3-06, $51.503 million in Q2-06, $53.974 million in Q1-06, $55.830 million in Q4-05, $55.993 million in Q3-05. Noninterest income totaled $14.644 million for Q3-07, $14.700 million in Q2-07, $15.277 million in Q1-07, $13.747 million in Q4-06, $13.899 million in Q3-06, $14.061 million in Q2-06, $13.639 million in Q1-06, $14.427 million in Q4-05, $17.440 million in Q3-05. Nonperforming assets Total Nonaccrual Loans Q3-07 4.827 million [0.20% of total loans] Q2-07 5.038 million [0.21%] Q1-07 4.800 million [0.19%] Q4-06 4.465 million [0.18%] Q3-06 5.051 million [0.21% of total loans] Q2-06 5.512 million [0.22%] Q1-06 6.225 million [0.24%] Q4-05 6.324 million [0.24%] Dividend-Cut Anxiety Rises as Banks Wobble Anne Carrns, WSJ 11-10 Even if their share prices were humdrum, banks have long been regarded as trustworthy dividend generators for investors counting on consistent income streams. Now, anxiety is swirling around bank-company stocks -- and their dividends. The latest concern is Washington Mutual Inc. Its chairman and chief executive, Kerry Killinger, had a chance in recent days to ease worries that worsening mortgage problems would force the largest U.S. savings and loan to slash its hefty dividend payments. Instead, Mr. Killinger hit rewind. He steered analysts and investors to comments he made last month when the Seattle-based thrift posted dismal third-quarter results, saying that WaMu's directors would do their usual evaluation when the next quarterly dividend comes up for discussion in January. "I really can't add to what I said," Mr. Killinger said Wednesday. WaMu declined further comment on Friday. "This seems to leave the door open to a cut," Goldman Sachs analyst Lori Appelbaum concluded. Analyst Robert Lacoursiere of Banc of America Securities adds that WaMu's dividend looks "increasingly vulnerable." WaMu is an extreme example. While the subprime meltdown has triggered just a few dividend cuts so far, this is the first time since the early 1990s that bad loans have grown enough to raise questions about the "widows and orphans" reputation of bank stocks. "Bank dividends have been very reliable," says Chris Marinac, research director at FIG Partners, an Atlanta investment firm specializings in banking stocks. "But a lot of things are unusual about this market." Keith Stribling, Los Angeles-based co-manager of Highmark Value Momentum Fund, says it is crucial for investors who depend on dividends to be especially choosy about bank stocks until the mortgage migraine ends. He recommends lenders with persnickety underwriting reputations, like Wells Fargo & Co., or substantial revenue streams from nonlending businesses. Despite all the problems, bank stocks still offer attractive yields overall, with a median of 4.1% for the 50 largest U.S. banks, according to Mr. Marinac. That compares with a 2.7% dividend yield for Standard & Poor's 500-stock index. It would likely take much more misery to imperil dividends at most major banks, including SunTrust Banks Inc. of Atlanta, which faces exposure to the real-estate market in Florida. First Horizon National Corp., would "beg, borrow or steal" before trimming its dividend, Mr. Marinac says, even though the Memphis, Tenn., bank is piling up construction-related loan losses in Florida. Still, banks are having a tough time reassuring investors. Comerica Inc., a regional bank based in Dallas, told European investors in meetings Thursday that its dividend is safe. Citigroup Inc. continues fending off suggestions that it might have to cut its dividend or sell assets to bolster its deteriorated capital cushion. IndyMac Bancorp Inc., a home-mortgage lender, warned this week of a "significant cut" in its dividend if it continues to post losses. More bad news for banks Friday won't help. Wachovia plans to boost its loan-loss provision in the current quarter as a result of "dramatic declines" in housing values. A spokeswoman said the bank doesn't anticipate any change in its dividend policy. The stock now yields 6%. At WaMu, dividend worries have been growing since the company failed last month to increase its dividend for the first time in four years. Ballooning loan-loss provisions, or funds set aside in anticipation of soured loans, are soaking up cash flow needed to fund future payments to investors. Keeping the dividend at current levels costs WaMu roughly $500 million each quarter. And in the third quarter, WaMu had to dip into its cash hoard to cover more than half of its 56-cent-a-share payout. The Office of Thrift Supervision, WaMu's primary regulator, allows institutions to pay dividends that exceed earnings for designated periods of time, as long as they maintain adequate levels of capital as a cushion. After socking away $967 million for potential losses in the third quarter, tied largely to subprime and home-equity loans, WaMu now expects to make quarterly loan-loss provisions of at least $1 billion through the first quarter, with no predictions beyond that. Some analysts say Wall Street has factored a dividend cut into WaMu's stock. Shares are down 55% on the year, rising 5.8% Friday to $20.51 on the New York Stock Exchange. Concerns about liquidity in the banking system have raised the possibility that there will be an increase in bank failures in the next year or so. Bank failures in the U.S. are rare--the three logged so far this year are out of nearly 8,000 banks in existence--and there have been just 28 since 2000. From mid-2004 until this February. there were no failures, the largest span of time without any since the Great Depression. Most bank failures are of small institutions. There have been just two failed banks with more than $1 billion of assets since 2000. (Liz Moyer, Forbes 11-14) Ratings & Dividend Changes On 11-14 FNB declared a dividend of $0.24/share payable on December 15, 2007, to shareholders of record as of the close of business on December 1, 2007. On 11-13 HBHC declared a dividend of $0.24/share payable Dec. 17 to shareholders of record as of Dec. 5. On 11-28 WTNY declared a dividend of $.29/share payable on January 2, 2008 to shareholders of record as of December 14, 2007. On 10-12 BXS declared a dividend of $0.21/share payable January 2, 2008 to shareholders of record at the close of business on December 14, 2007. On 10-17 RF declared an increased dividend of 38 cents/share payable January 2, 2008, to stockholders of record as of December 19, 2007. On 10-22 BOH declared an increased dividend of 44 cents/share to be paid on Dec. 14 to shareholders of record as of Nov. 30. On 10-23 PRSP declared an increased dividend of 12.5 cents/share payable Jan. 2 to shareholders of record on Dec. 14. On 10-24 TRMK increased its dividend 4.55% to $0.23/share from $0.22/share. The dividend is payable on December 15, 2007 to shareholders of record as of December 1, 2007. On 10-24 UB declared a dividend of $0.52/share tp be paid on January 4, 2008, to shareholders of record as of December 7, 2007. On 10-24 CYN declared a dividend of $0.46/share, payable on November 21, 2007 to stockholders of record on November 7, 2007. On 10-17 CNB declared a dividend of $0.1875/share to be paid on November 9, 2007 to shareholders of record as of the close of business on October 26, 2007. On 10-29 ZION declared a dividend of $0.43/share payable November 21, 2007 to shareholders of record on November 7, 2007. On 10-26 CBSH declared a dividend of $0.25/share payable December 13, 2007 to stockholders of record at the close of business on November 29, 2007 and approved a 5% stock dividend in a non-certificated form. Shares issued as a result of the stock dividend will be entered by Direct Registration System on the records of the Company’s transfer agent, Computershare, and statements reflecting the issuance will be mailed on December 13, 2007. No fractional shares will be issued and shareholders will receive cash for such fractional interests based on the market value of the stock on the record date. On 10-19 Citigroup Upgraded FHN from Hold to Buy. On 10-19 Stifel Nicolaus Downgraded ZION from Buy to Hold. On 11-14 FNB declared a dividend of $0.24 payable on December 15, 2007, to shareholders of record as of the close of business on December 1, 2007. On 11-13 HBHC declared a dividend of $0.24 payable December 17, 2007, to shareholders of record as of December 5, 2007. Home Page Factoids Previous Update |