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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. BOKF Reports $0.83 vs. $1.01 in Q4-06 PRNewswire 1-29 BOK Financial reported Q4-07 Net income of $51.2 million [$0.76/share] compared with $50.6 million [$0.75/share] for Q4-06. Diluted earnings per share for Q4-07 were reduced $0.11 by charges of [1] $8.6 million in holdings of variable rate perpetual preferred stock and [2] accrued $2.8 million for Visa litigation. ROA was 1.01% compared with 1.14% in Q4-06. ROE was 10.71% compared with 11.83% in Q4-06. Book value per share was $28.75 compared with $27.86 at the end of Q3-07 and $25.66 at the end of Q4-06. Net interest revenue totaled $141.3 million compared to $124.3 million in Q4-06. Average earning assets increased $2.4 billion, including a $1.4 billion increase in loans and a $897 million increase in average securities. Net interest margin was 3.22% compared with 3.25% for Q4-06. Yields on average earning assets decreased 23 basis points to 6.70% and the cost of interest-bearing liabilities decreased 29 basis points to 3.81%. The benefit to the net interest margin from earning assets funded by non-interest bearing liabilities was 33 basis points in Q4-07 compared with 42 basis points in Q4-06 and 36 basis points in Q3-07. Total other operating revenue was $107.316 million. Brokerage and trading revenue was $20.402 million; Transaction card revenue $23.512 million; Trust fees and commissions $20.145 million; Deposit service charges and fees $29.938 million. Non-performing assets totaled $104 million or 0.87% of outstanding loans and repossessed assets at December 31, 2007 compared with $66 million or 0.57% at September 30, 2007 and $44 million or 0.42% at December 31, 2006. Net charge-offs were $7.346 million [0.25% of average loans] compared to $4.869 million [0.17%] in Q3-07 and $2.788 million [0.11%] in Q4-06. BOH Reports $0.83 vs. $1.01 in Q4-06 PRNewswire 1-23 Bank of Hawaii reported Q4-07 Net income of $40.9 million [$0.83/share] compared with $50.9 million [$1.01/share] in Q4-06. Q4-07 income was reduced by a charges of $5.6 million [$0.07/share] by the litigation contingency for Visa, while Q4-06 incomes was increased by $6.2 million [$0.12/share] for tax matters that were resolved during the quarter. Net Income to Average Total Assets was 1.55% compared to 1.94% in Q4-06. Net Income to Average Shareholders' Equity was 21.51% compared to 28.56% in Q4-06. Book Value was $15.44 compard to $14.91 at the end of Q3-07 and $14.45 at the end of Q4-06. FTE Net interest income was $99.7 million compared with $100.4 million in Q4-06. The net interest margin was 4.12% compared with 4.15% in Q4-06. Fed cuts in rates will help NIM in Q1. Total Earning Assets were $9.675 billion earning $150.4 million at an average yield of 6.19% [compared with 6.17% in Q4-06]. Total Interest-Bearing Liabilities were $7.417 billion costing $50.7 million at an average yield of 2.71% [compared with 2.66% in Q4-06]. Noninterest income was $60.3 million compared to $53.5 million in Q4-06. Trust and Asset Management fees were $15.812 million; Fees, Exchange, and Other Service Charges $16.743 million; and Service Charges on Deposit Accounts $12.302 million. Non-accrual loans and leases were $5.1 million at December 31, 2007, down from $5.9 million at December 31, 2006 and up from $4.2 million at September 30, 2007. As a percentage of total loans and leases, non-accrual loans remain at historic lows of 0.08% at December 31, 2007. The credit risk profile of the home equity portfolio is strong. The non-accrual home equity loans have a current weighted average loan-to-value ratio of 61% [and LTVs averaged 50% on those HELOCs past due]. Net charge-offs were $5.4 million [0.33% annualized of total average loans and leases] compared to $3.1 million in Q4-06. BXS Reports $0.39 vs. $0.35 in Q4-06 PRNewswire 1-23 BancorpSouth reported Q4-07 net income of $32.2 million [$.39/share] compared to $28.1 million [$0.35/share] for Q4-06. ROA was 0.98% compared to 0.94% in Q4-06. ROE was 11.00% compared to 10.99% in Q4-06. Book value per share at the end of Q4-07 was $14.54 compared to $12.98 at the end of Q4-06. Net interest revenue was $109.7 million compared to $96.3 million for Q4-06 and $107.9 million for Q3-07. The net interest margin increased to 3.72% compared with 3.64% for Q4-06 and 3.66% for Q3-07. The average FTE yield on earning assets increased to 6.84% from 6.70% for Q4-06 and decreased from 6.98% for Q3-07. The average rate paid on interest bearing liabilities was 3.68% compared with 3.67% for Q4-06 and 3.92% for Q3-07. Noninterest revenue increased 9.6% to $55.3 million from $50.1 million for Q4-06. These results included a decline in the value of the mortgage servicing asset totaling $4.5 million for Q4-07 and $4.0 million for Q4-06. Service charges in Q4-07 were $18.125 million, Insurance commissions $16.181 million, and Credit card, debit card and merchant fees $7.904 million. Annualized net charge-offs were 0.21% of average loans and leases compared with 0.25% for Q4-06 and 0.13% for Q3-07. Non-performing loans and leases increased to $29.2 million [0.32% of loans and leases] at December 31, 2007 from $23.5 million [0.30%] at December 31, 2006 and declined from $31.3 million [0.35%] at September 30, 2007. CATY Reports $0.62 vs. $0.58 in Q4-06 PRNewswire 1-24 Cathay General Bancorp reported Q4-07 net income of $30.9 milliion [$.62/share] compared to $30.5 million [$0.58/share] in Q4-06. ROA was 1.23% compared to 1.54% in Q4-06. ROE was 12.70% compared to 13.03% in Q4-06. Book value per share at the end of Q4-07 was $19.70 compared to $18.16 at the end of Q4-06. Net interest income before provision for loan losses grew to $80.4 million compared to $72.4 million for Q4-06 due primarily to the strong growth in loans and investment securities. FTE net interest margin 3.43% compared to 3.69% in Q3-07 and 4.01% in Q4-06. The decrease from Q4-06 was primarily a result of the lag in the downward repricing of CDs and the decrease from Q3-07 was primarily due to a significant increase in the average balance for investment securities, which have a lower yield compared to loans, and the lag in the downward repricing of certificates of deposit. The FTE yield on average interest-earning assets was 7.01% and the cost of funds on average interest-bearing liabilities equaled 4.12%. Non-interest income increased to $6.6 million from $5.2 million for Q4-06 primarily due to higher venture capital gains of $756,000, an increase in gains on sale of available-for-sale securities of $577,000 and an increase in letter of credit commissions of $240,000, or 17.6% partially offset by a $746,000 other-than-temporary impairment write-down of the Company's investment in the common stock of Broadway Financial Corporation. Non-performing assets to gross loans and other real estate owned was 1.25% at December 31, 2007, compared to 0.62% at December 31, 2006. Total non-performing assets increased $48.1 million to $83.7 million at December 31, 2007, compared with $35.6 million at December 31, 2006. Net Charge-offs were $2.418 million compared to $0.843 million in Q4-06. CBSH Reports $0.60 vs. $0.76 in Q4-06 PRNewswire 1-23 Commerce Bancshares reported Q4-07 earnings of $43.7 million [$.60/share] compared to $57.0 million [$.76/share] in Q4-06. Q4-07 included a charge of $21.0 million related VISA litigation. ROA was 1.42% compared to 1.51% in Q4-06. ROE was 14.92% compared to 15.52% in Q4-06. Book value per share was $21.28 compared to $19.63 at the end of Q4-06. FTE net interest income was $139.651 million compared to $136.605 million in Q4-06. FTE Net yield on interest earning assets was 3.76% compared to 3.89% in Q4-06. The overall tax equivalent yield on interest earning assets declined 17 basis points from the previous quarter to 6.43%, while the overall cost of interest bearing liabilities also decreased 17 basis points to 2.91%. Non-interest income was $98.101 million compared to $90.030 million in Q4-06. Deposit account charges and other fees were $30.610 million; Bank card transaction fees $28.266 million; and Trust fees $20.392 million. Total Non-Performing Assets were $33.417 million [0.32% of loans and 0.21% of assets] compared to $18.223 million [0.19% and 0.12%] in Q4-06. The net loan charge-offs for the year at .42% compared with .29% last year. Net total loan charge-offs in Q4-07 were $14.064 million compared to $8.074 million in Q4-06. CFR Reports $0.93 vs. $0.84 in Q4-06 PRNewswire 1-23 Cullen/Frost reported Q4-07 net income of $54.7 million [$.93/share] compared to $48.4 million [$.84/share] for Q4-06. Included in Q4-06 results were $2.0 million in conversion expenses relating to the December acquisition of Summit Bancshares. Q4-07 contained a small charge for Visa litigation. ROA in Q4-07 was 1.65% compared to 1.59% in Q4-06. ROE was 15.18% compared to 16.04% for Q4-06. Book value per share at the end of Q4-07 was $25.18 compared to $23.74 at the end of Q3-07 and $23.01 at the end of Q4-06. FTE Net interest income in Q4-07 was $135.269 million compared to $134.704 million in Q3-07 and $124.017 million in Q4-06. CFR a seven-year $1.2 billion interest rate swap in October of 2007, moving its balance sheet to a more interest rate neutral position in order to reduce some of the potential negative earnings impact of a declining rate environment. The net interest margin was 4.70% compared to 4.69% in Q3-07 and 4.62% for Q4-06. Total non-interest income in Q4-07 was $66.383 million compared to $70.756 million in Q3-07 and $58.400 million in Q4-06. Trust fees in Q4-07 was $18.009; Service charges on deposit accounts $21.044 million; and Insurance commissions and fees $5.979 million. Non-performing assets in Q4-07 were $29.849 million [0.22% of Total loans and foreclosed assets] compared to $26.379 million [0.20%] in Q3-07 and $57.749 million [0.44%] in Q4-06. Net charge-offs in Q4-07 were $3.500 million [0.18% of average loans] compared to $9.592 million [0.51%] in Q3-07 and $3.329 million [0.20%] in Q4-06. From the Conference call: Strip centers are being watched - but we have not yet seens deteriorization. We loan to centers that have big anchors and we require pre-leasing. Home builders are less than 1% of our loans. We have not seen decreases in housing prices. Home builders are building less, as shown in a decline in new permits. There is a 10+ month supply nationally of homes - but 6 months in Texas. On deposit pricing, we are now more in the middle of the pack. The larger banks which may have balance sheet conerns are being more agressive on deposit pricing. People who know why the larger banks are giving higher rates are possibly causing an intangilbe flight to quality to CFR. CNB Reports $0.06 vs. $0.43 in Q4-06 Prime Newswire 1-23 Colonial BancGroup reported Q4-07 Net income of [$0.06/share] compared to [$0.43/share] in Q4-06. Q4-07 included $93 million [$0.26/share] of loan losss provision in excess of net charge-offs and $0.02 of merger and severance costs. ROA was 0.14% compared to 1.16% in Q4-06. ROE was 1.58% compared tp 12.85% in Q4-06. Book value per share at the end of Q4-07 was $14.44 compared to $14.16 at the end of Q3-07. Net interest income was $195.201 million compared to $184.468 million in Q4-06. FTE Net interest margin was 3.43% compared to 3.65% in Q3-07.Total interest earning assets 22.917 billion earning $402.344 million at an average yield of 6.98% Total interest bearing liabilities 19.566 billion costing $204.997 million at an average yield of 4.16%. Total noninterest income in Q4-07 was $59266 million. Retail banking fees in Q4-07 was $27.174 million; Financial planning services $4.123 million, Mortgage banking origination and sales $4.840 million, Mortgage warehouse fees $3.017 million and Bank-owned life insurance $5.203 million. Net charge-offs were $34 million of 0.88% of loans. Total nonperforming assets $ 137.646 million [0.86% of net loans, other real estate and repossessions] compared to $70.153 million [0.46%] in Q3-07 and $25.149 million [0.16%] in Q4-06. From the Conference call: Detail of NPAs: Residential construction was $69 million of the NPAs. 16% of that $69 million or $22.5 million were buider home loans. 13% or $18 million was residential land - usually owned by developers and loans that were marked to market. 6.5% or $9 million was residential development - usually land. 6% or $8 million builder lots - usually one lot per builder on these loans - loans that were marked to market. $6.5 million Indivual home loans and $4.8 million consumer lots. Condo Construction was $27 million or 19.9% of NPAs - almost all in one loan on a 4 story that is complete. LTV 92% - expect to recover all of our money, but may take some time. $14 milion commercial construction - most of that in land. Commercial real estate was $6.3 million which contained $1.6 million in a warehouse, $1.6 million for an office, $1 million farm - CNB plans to sell these properties. Residential real estate loans to consumers were $18 million - these are first mortgages. Finally non-real estate or CNI secured - very little in this category. CNB has $2.9 billion in residential construction loans. 45% in Florida 17% in Texas 14% in Georga 14% in Alabama and 17% in Nevada. CNB has one 'national home builder' loan mostly for invesntory in Texas, which is still doing very well. Approx 2.23% of loans are past due. In 2008 in the first two quarters, we expect charge offs and NPAs will increase. But we will not take quick losses if we can get our money back in 4 to 6 quarters. If Fed cuts rates, that will help our builders who serve the lower end of the market, and lower rates will bring their customers back. Our footprint is in high population and job growth markets. We have experienced team that has gone through bad markets before - and we will get through this. CNB was asked "Where could your forecast be wrong?" CNB: [1] On things where we have no control. [2] If recession is severe and people start losing jobs. Our portfolio is very short term in nature - and those who were going to run out of money have done so already. We do not have a lot of uncompleted homes - which aids us in recoveries. Most of the larger banks are reporting on off balance sheet transactions and are reporting problems with Asset Management. Merrill and Citi are charging off billions in paper. There is no security behind those deals. If a builder can't pay, we can take his houses. CNB did not own paper - thus they should be in better shape. NIM - deposit competition was a problem in Q4, but deposit costs were down. With recent Fed reduction - that will hurt us because we are asset sesnitive. We have told our banks to raise deposits. We paid off mortgage funding - which will help net interest income but hurt margins. We are not buying securities. 3.55% margin for 2007, but it trended lower, to 3.43% in Q4-07 - and we expect that trend to continue. CNB was asked if they saw any change in competitive environment since year-end? CNB: No. CYN Reports $0.96 vs. $1.19 in Q4-06 Business Wire 1-24 City National Corporation reported Q4-07 net income of $46.9 million [$0.96/share] compared with $58.6 million [$1.19/share] in Q4-06. Q4-07 net income reflects a $20.0 million provision to loan-loss allowance or an after tax charge of $11.6 million [$0.24/share]. ROA was 1.19% compared to 1.58% in Q4-06. ROE was 11.28% compared to 15.77% in Q4-06. Book value at the end of Q4-07 was $34.61 compared to $31.39 at the end of Q4-06. FTE net interest income was $158 million, up 3% from Q4-06. The net interest margin averaged 4.42% in Q4-07, unchanged from the previous quarter. Total interest-earning assets were $14.223 billion at an average yield of 6.36%. Total interest-bearing liabilities were $8.065 billion at an average yield of 3.42%. Noninterest income totaled $82.3 million, up 28% from $64.226 million in Q4-06. Excluding the acquisition of Convergent Wealth Advisors, noninterest income was up 17% from Q4-06. Trust and investment fees were $38.188 million compared to $30.777 milion in Q4-06; Brokerage and mutual fund fees $16.995 million compared to $13.309 million in Q4-06; Cash management and deposit transaction fees $9.517 million compared to $7.909 million in Q4-06; and International services $8.379 million compared to $6.486 million in Q4-06. Total nonperforming assets were $75.561 million [0.65% of total loans] compared to $26.227 million [0.23%] in Q3-07 and $20.883 million [0.20%] in Q4-06. Net charge-offs totaled $3.863 million [0.13% of total loans] compared to $3.591 million [0.13%] in Q3-07. EWBC Reports $0.59 vs. $0.63 in Q4-06 Business Wire 1-28 East West Bancorp reported Q4-07 net income of $37.2 million [$0.59/share] compared with $39.1 million [$0.63/share] for Q4-06. the decrease was due to an increase in the Provision for loan losses to $9 million from $2 million in Q4-06. ROA was 1.27% compared to 1.45% in Q4-06. ROE was 12.68% compared to 15.72% in Q4-06. Book value at the end of Q4-07 was $18.56. Net interest income was $106.6 million, 9% or $9.2 million greater than Q4-06 and 3% or $2.8 million greater than Q3-07. The net interest margin of 3.91% wasan increase of 10 basis points from Q4-06. Total interest-earning assets were $10.872 billion earning $202 million at an average yield of 7.37%. Total interest-bearing liabilities were $8.971 billion costing $95 million at an average yield of 4.19%. Noninterest income totaled $14.0 million compared to $9.3 million in Q4-06 and reflecting no change from Q3-07. Core noninterest income, excluding the impact of gain on sales of investment securities and other assets, totaled $11.3 million during the quarter, $2.0 million higher than Q4-06. The increase was primarily a result of increased branch fees, which was up 47% from Q4-06. Total nonperforming assets were $67.5 million [0.57% of total assets] compared to $19.9 million [0.18%] at December 31, 2006. Net loan charge-offs were $6.8 million, or 0.08% of average loans for the full year 2007. This compares to a net recovery of $484 thousand or 0.01% of average loans for the full year 2006. EWBC's charge off ratio averaged 0.18% over past 15 years compared to a bank sector average of 0.70%. EWBC's expects charge-off ratio to be low 0.35% in 2008. FHN Reports Loss & Cuts Dividend Prime Newswire 1-17 First Horizon National reported a Q4-07 a net loss of $248.6 million [$1.97/share] compared to a net loss of $14.2 million [$0.11/share] in Q3-07 and a profit of $76.467 million [$0.60/share] in Q4-06. ROA in Q4-07 was -2.65% compared to -0.15% in Q3-07 and 0.77% in Q4-06. ROE in Q4-07 was -42.52% compared to -2.31% in Q3-07 and 12.08% in Q4-07. Book Value at the end of Q4-07 was $16.83 compared to $19.08 in Q3-07 and $19.61 at the end of Q4-06. FHN has approved a dividend cut to $0.20/share [from $0.45]. FHN confirmed in the CC that there was not any regulatory pressure to cut the dividend. Net interest income in Q4-07 was $225.987 million compared to $245.997 million in Q4-06. while Net interest income after provision for loan losses was 69.468 million compared to $223.014 million in Q4-06. Consolidated net interest margin declined to 2.77% from 2.87% in Q3-07 primarily reflecting the impact of elevated LIBOR, and 2.85% in Q4-06. Noninterest income in Q4-07 was $103.429 million compared to $313.342 million in Q4-06. FHN’s three major brands -- FTN Financial, First Horizon and First Tennessee – provide customers with a broad range of products and services including: [1] Capital markets, one of the nation’s top underwriters of U.S. government agency securities; [2] Mortgage banking, one of the nation’s top mortgage originators; and [3] Retail/commercial banking, with the largest market share in Tennessee. Capital Markets recognized pre-tax income of $21.0 million compared to a $7.7 million pre-tax loss in Q3-07. Mortgage Banking had a pre-tax loss of $262.8 million compared to a pre-tax loss of $45.8 million for Q3-07, which primarily reflects recognition of reductions in values of mortgage servicing rights and other retained interests, impairment of goodwill and the continued deterioration of credit markets during the quarter. Retail/Commercial Banking experienced a pre-tax loss of $51.8 million compared to pre-tax income of $78.3 million for Q3-07. The net charge-off ratio was 93 basis points in Q4-07 compared to 57 basis points in Q3-07 as net charge-offs increased to $50.8 million from $31.4 million in Q3-07. FNB Reports $0.28 vs. $0.29 in Q4-06 Prime Newswire 1-17 FNB reported Q4-07 net income was $17.1 million [$0.28/share] compared to $17.6 million [$0.29/share] for both Q3-07 and Q4-06. The ROE was 12.5% and ROA was 1.11%. Book value per share at the end of Q4-07 was $8.99 compared to $8.94 at the end of Q3-+07 and $8.90 at the end of Q4-06. FTE Net interest income was $50.612 million compared to $50.327 million in Q3-07 and $48.994 million in Q4-06. FTE Net interest income after provision was $45.380 million compared to $46.551 million in Q3-07 and $46.465 in Q4-06. The net interest margin declined 1 basis point to 3.72% compared to Q3-07. The FTE Yield on earning assets was 6.90% compared to 6.84% in Q4-06. The Cost of funds was 3.54% compared to 3.55% in Q4-06. Total non-interest income was $20.636 million compared to $19.682 million in Q3-07 and $19.296 million in Q4-06. Service charges in Q4-07 were $10.711 million; Insurance commissions and fees $3.044 million; Securities commissions and fees $1.805 million; and Trust income $2.188 million. The annualized net loan charge-offs for Q4-07 were 41 basis points of average loans, representing an increase from historically low levels of 27 basis points in Q3-07 and 28 basis points in Q4-06. The ratio of non-performing assets to total assets was 67 basis points at December 31, 2007, representing an increase from historically low levels of 49 basis points in Q3-07 and 57 basis points in Q4-06. From the Conference Call: FNB has loan production offices in Pennsylvania, Tennessee and Florida [6% of total loans or $265 million]. Florida loans are primarily owner occupied commercial properties or rental income commercial properties. For one Florida developer there was a Q4-07 charge-off of $853K on one project and problems on one other loan to that same developer which resulted in an increase of $9.9 million of FNB's NPAs. There are no other deliqnescies in the Florida portfolio. Loans on commercial undeveloped real estate in Florida - when re-appraised - the land valuation updates are flat or increasing. There is an infrastructure need for retail and office space in Florida due to population growth, which is still going on. FNB's Insurance fees in Q4-07 were flat despite 12% decreases in the industry. The 2008 Outlook - before the Omega addition, loan growth in mid single digits. FNB expects lower yield curve - but should keep margin steady despite heavy competition for deposits. 2008 EPS $1.16 - $1.20/share before Omerga acquisition which will subtract 5 cents per share in EPS in 2008. FNB was asked if the competition from other larger banks is now less, and are they seeing bigger deals? FNB: We have benefited by getting some customers after the Sky-Huntington merger. Our eastern markets are doing well, and having Omega will help existing branches there. From the data FNB receives, the Pennsylvania residential property market is flat. And there is less competition from mortgage companies - some of them now no longer being in business. Builders are coming to FNB for loans where in the past they had used mortgage companies. FCBP Reports $0.62 vs. $0.82 in Q4-06 PRNewswire 1-22 First Community Bancorp reported Q4-07 net earnings were $17.1 million [$0.62/share] compared to $22.2 million [$0.77/share] for Q3-07 and $22.8 million [$0.82/share] for Q4-06. The decrease in net earnings resulted from a larger credit loss provision, charges for FHLB prepayment penalties, and reorganization costs reduced net earnings by $3.4 million [$0.12/share] compared to Q3-07. ROA was 1.32% compared to 1.72% in Q3-07 and 1.72% in Q4-06. ROE was 5.86% compared to 7.31% in Q3-07 and 8.32% in Q4-06. Book value per share at the end of Q4-07 was $40.65 compared to $39.42 at the end of Q4-06. Net interest income totaled $62.9 million compared to $66.3 million for Q3-07 and $70.2 million for Q4-06. In mid-December 2007, we refinanced $200 million in FHLB advances costing 4.86%, paid a $1.4 million prepayment penalty, and replaced these borrowings with putable FHLB advances having a fixed rate of 3.16% for the first year. The interest expense savings for the next twelve months is $3.4 million. FTE Net Interest Margin was 6.11% compared to 6.44% in Q3-07 and 6.52% in Q4-06. Noninterest income totaled $5.4 million compared to $5.7 million for Q3-07 and $3.9 million for Q4-06. FCBP's nonaccrual loans decreased $576,000 to $22.4 million at December 31, 2007 from $23.0 million at September 30, 2007. Our ratio of nonaccrual loans to total loans, including loans held for sale, decreased to 0.56% at December 31, 2007 from 0.59% at September 30, 2007. The year-end nonaccrual loans include 25 SBA loans totaling $10.4 million, 2 residential construction loans for $3.5 million, a multifamily residential loan for $3.1 million, and 2 residential land loans for $2.9 million. GBCI Reports $0.34 vs. $0.32 in Q4-06 PRNewswire 1-31 Glacier Bancorp reported Q4-07 net earnings of $18.146 million [$.34/share] compared to $17.030 million [$.32/share] for Q4-06. ROE was 13.82% compared to 15.01% in Q4-06. ROA was 1.49% compared to 1.51% in Q4-06. Book value per share was $9.85 compared to $8.72 at the end of Q4-06. Net interest income grew to $48.199 million from $45.349 million in Q4-06 due to the volume and rate increases in interest bearing deposits. The FTE net interest margin was 4.52% compared to 4.50% in Q3-07 and 4.55% in Q4-06. Total Earning Assets in Q4-07 was $4.356 billion earning $79.117 million at an average yield of 7.21%. Total Interest Bearing Liabilities were $3.403 billion costing $30.918 million at an average yield of 3.60%. Total non-interest income was $16.237 million compared to $14.026 million in Q4-06. Service charges and other fees were $10.130 million and Gain on sale of loans were $3.330 million. Non-performing assets were $13.288 million [0.27% of total bank assets] compared to $8.894 million [0.19%] at the end of Q4-06. Net charge-offs as a percentage of total loans were 0.060% compared to 0.021% in Q4-06. HBHC Reports $0.53 vs. $0.65 in Q4-06 Prime Newswire 1-22 Hancock Holding Company reported Q4-07 earnings of $16.600 million [$.53/share] compared to $21.762 million [$.65/share] in Q4-06. ROA was 1.28% compared to 1.21% in Q3-07. ROE 13.48% compared to 12.58% for Q3-07. Book value per share at tne end of Q4-07 was $17.71 compared to $17.55 at the end of Q3-07 and $17.09 at the end of Q4-06. FTE Net interest income was $53.974 million compared to $53.566 million in Q3-07 and $55.400 in Q4-06. FTE Net Interest Margin was 4.08% compared to 4.23% in Q4-06. Average earning assets were $5.333 billion earning $90.041 million at an average FTE yield of 6.72% [compared to 6.41% in Q4-06]. Total interest bearing liabilities were $4.359 billion costing $36.067 million at an average yield of 3.28% [compared to 2.84% in Q4-06]. Noninterest income [excluding securities transactions] were $31.255 million compared to $30.485 million in Q3-07 and $27.459 million in Q4-06. Service charges on deposit accounts were $11.182 million; Trust fees $4.194 million; Debit card & merchant fees $2.090 million; and Insurance fees $5.561 million. Net charge-offs were $2.4 million [0.26% of average loans] up from the $1.9 million [0.21%] for Q3-07. The majority of the increase was reflected in indirect auto loans and in Hancock's consumer finance subsidiary. Net charge-offs for Q4-07 for all commercial and mortgage loans were a net recovery of $58 thousand. Non-performing assets as a percent of total loans and foreclosed assets was 0.43% at December 31,2007, compared to 0.28% at September 30, 2007. PCBC Reports $0.26 vs. - $0.02 in Q4-06 PRNewswire 1-31 Pacific Capital Bancorp reported Q4-07 Net income of $12.2 million [$0.26/share] compared with a net loss of $1.1 million, [-$0.02/share] for Q4-06. Net income for 2007 was $100.9 million [$2.14] compared with $94.5 million [$2.01] in 2006. Q4-07 contained a $3.0 million loss recorded on securities that were marked-to-market. Q4-06 contained a $8.8 million loss recorded on securities that were marked-to-market; a $9.3 million asset write-down related to obsolete software; $0.5 million in severance charges; $1.8 million gain on sale of PCBC’s San Diego branch; and a $1.0 million benefit from the true-up of the effective tax rate. ROE was 7.36% compared to -0.73% in Q4-06. ROA was 0.67% compared to -0.06% in Q4-06. Book value was $14.49 compared to $14.35 at the end of Q3-07 and $13.17 at the end of Q4-06. Net interest income was $59.0 million compared with $66.6 million in Q4-06. The decrease is primarily attributable to a decline in NIM and the sale of loan portfolios during Q2-07. Net interest margin was 3.62% compared with 4.06% in Q4-06 and 3.65% in Q3-07. Total earning assets in Q4-07 were $6.625 billion earning $113.263 million at an average rate of 6.78%. Total interest-bearing liabilities were $5.544 billion costing $52.848 million at an average rate of 3.78%. Non-interest income was $14.2 million compared with $9.9 million in Q4-06. Excluding the impact of the strategic actions, non-interest income was $17.2 million, compared with $16.7 million in Q4-06. Service charges on deposits were $4.582 million and Trust and investment advisory fees were $6.036 million. Total non-performing assets were $76.7 million [1.04% of total assets] at December 31, 2007, compared with $25.7 million [0.36%] at September 30, 2007. Excluding RALs, net charge-offs were $1.4 million for the three months ended December 31, 2007, compared with net charge-offs of $3.2 million for the three months ended September 30, 2007. PCBC projects overall transaction volume during the 2008 RAL/RT season to increase 10-15% over the 2007 season volume and expects the product mix to be approximately 25% RALs and 75% RTs. RALs are Refund Anticipation Loans and are loans made to taxpayers on the basis of the refund that is anticipated to arrive from the Government. RTs are Refund Transfers and provides the delivery of the taxpayer's refund after the BANK receives refund amount from the Government. For full year 2007 Total net interest income was $361 million, with $256 million for bank loans and $105 million from RAL. PRSP Reports $0.53 vs. $0.50 in Q4-06 PRNewswire 1-25 Prosperity Bancshares reported Q4-07 earnings of $23.565 million [$0.53/share] compared to $16.602 million [$0.50/share] for Q4-06. ROA was 1.52% compared to 1.47% in Q4-06. ROE was 8.40% compared to 10.08% in Q4-06. Book value per share at the end of Q4-07 was $25.54 compared to $20.26 at the end of Q4-06. Net interest income before provision for credit losses were $51.634 million compared with $36.406 million during Q4-06. The increase was attributable primarily to a 30.7% increase in average earning assets, which was mostly due to the TXUI and Navasota acquisitions and internal growth. FTE annualized net interest margin 4.12% compared with 3.79% for Q4-06 and 4.07% for Q3-07. Total interest earning assets were $5.049 billion earning $85.441 million at an average yield of 6.71%. Total interest bearing liabilities were $3.823 billion costing $33.807 million at an average yield of 3.51%. Non-interest income was $13.248 million compared with $8.241 million for Q4-06. The increase was attributable to deposit service charges on the increased number of deposit accounts that resulted from additional banking centers acquired in January and August 2007. Service charges on deposit accounts was $11.029 million and there were no other major lines in non-interest income. Net charge-offs were $3.113 million [0.10% of average loans] compared with $0.247 million [0.01% of average loans] for Q4-06. At December 31, 2007, the allowance for credit losses was 1.04% of total loans, compared with 1.10% at December 31, 2006 and 1.14% as of September 30, 2007. Non-performing assets totaled $15.390 million [0.30% of average earning assets] compared with $1.120 million [0.03%] at the end of Q4-06. From the Conference Call: Foreclosures - the big ones were two shopping centers and one mobil home park from the Southern National bank acquisition. Total was 22 properties and 4 were over a million. We feel that we are churning through the problem loans at the acquisitions and we will be cleaned up in 18 months, depending on the continued health of the economy. The Texas economy has slowed down, but it is still good. Texas has had 2.1% job growth vs. 1% growth nationally. There are less building permits than last year - but permit growth is as good as it was 2 years ago. We are still lending and doing mortgages when borrowers have good documentation. Things were getting over-heated, making it hard to find employees and real estate inflation was gong up. Still, housing properties were never that high with the possible exception of Austin. Even if oil drops to $60/barrel, the oil companies will be making money. And the national ecomony has taken some mortgage companies out of the market - and cut out some intense competition on CDs [where they were paying 5.5% when we think the rates should have been 3.5%] for deposits and will get Texas back to a normal yield curve, which will help our margins. But that could take six months to show up in our numbers. The loan mix was 41% fixed - 31% floating with prime and 28% resetting at calendar intervals. RF Reports $0.10 vs. $0.56 in Q4-06 Prime Newswire 1-22 Regions’ reported Q4-07 net income was $70.6 million [$0.10/share] which included $150.2 million in pre-tax merger-related expenses, $134.2 million in pre-tax non-merger-related charges and valuation adjustments, and a provision for loan losses that increased to $358.0 million. Excluding the impact of merger-related expenses, earnings per diluted share from continuing operations were $0.24 compared to Q3-07’s $0.64 - and compared to net income of $361.6 million [$0.56/share] in Q4-06. ROA in Q4-07 was 0.20% compared to 1.14% in Q3-07 and 1.15% in Q4-06. ROE om Q4-07 was 3.67% compared to 20.14% in Q3-07 and 19.59% in Q4-06. FTE net interest income was $1.1 billion in Q4-07, $36.2 million below the third quarter level. The fourth quarter’s 13 basis point net interest margin decline to 3.61% was driven in part by a reduced level of low-cost deposits. Non-interest revenue, excluding securities transactions, grew an annualized 16% from the previous quarter to $733.0 million. Residental first mortgage loans have an average FICO of 722 with a LTV of 68%. Home equity loans have an average FICO of 733 and a LTV of 74%. Those home equity loans [some $500 million] that are second lien loans with LTV's over 80%, those are insured. All of these were originated through our branch and not brokers. One third of the HELOCs are first mortgages. Half of the HELOC portfolio written 2005 and earlier - so it is well seasoned. And the 74% LTV - that is if the were fully drawn upon, which they are not. The actual LTV is closer to 44%. So we are still interested in writing HELOC loans. RF has no sub-prime loans, no negative amortization loans, no teaser rate loans, and no SIVs. Net loan charge-offs increased to $107.5 million [0.45% of average net loans] compared to $63.1 million [0.27% of average net loans] in Q3-07. Total non-performing assets at December 31, 2007, were $864.1 million [0.90% of loans and other real estate] compared to $588.3 million [0.62%] at September 30, 2007. Stress on the residential builder portfolio largely drove the quarterly increase. TRMK Reports $0.42 vs. $0.50 in Q4-06 Business Wire 1-22 Trustmark Corporation announced Q4-07 net income of $23.8 million [$0.42/share] compared to $ 29.419 million [$0.50/share] in Q4-06. Earnings during Q4 included an accrual for expenses due to the Visa antitrust litigation and the correction of an error for an under accrual of interest income for prior periods related to loan fees of collectively $1.5 million [$0.026/share]. Trustmark's loan loss provision totaled $17.0 million, an increase of $12.0 million relative to Q3-07. The increased provision is due to weakening of homebuilder credit quality in Trustmark's Florida Panhandle market. TRMK's total credit exposure in this market is $712 million, or approximately 10% of TRMK's total loans, and is predominately real estate related. ROE was 16.28% and ROA was 1.06%. Book value at the end of Q4-07 was $16.06 compared to $15.19 at the end of Q4-06. FTE Net interest income was $82.298 million compared to $74.655 million in Q4-06 - while the $17 million increase in the loan loss provision resulted in FTE Net interest income after provision of $65.297 million compared to $75.564 million in Q4-06. Q4-07 Earnings included the correction for an under accrual of interest income in prior periods related to loan fees that increased net income by $2.0 million [$0.035/share]. Excluding this amount, the net interest margin in Q4-07 expanded to 3.95%. Total noninterest income was $42.257 million compared to $41.569 million in Q4-06. Service charges on deposit accounts was $13.908 million, Insurance commissions $7.630 million and Wealth management $6.969 million. Nonperforming assets at December 31, 2007 totaled $73.5 million, up $22.2 million relative to the prior quarter, to represent 1.02% of total loans and other real estate. The increase in nonperforming assets was attributable to TRMK's Florida Panhandle operation and consisted principally of four residential real estate credits. Net charge-offs in Q4-07 increased to 0.53% of average loans. Trustmark's allocation of its allowance for loan losses represented 1.48% of commercial loans and 0.59% of consumer and home mortgage loans, resulting in an allowance to total loans of 1.13% at December 31, 2007. UB $1.20 vs. $1.61 in Q4-06 Business Wire 1-24 UnionBanCal Corporation reported Q4-07 net income of $165.7 million [$1.20/share] compared with $226.4 million [$1.61/share] in Q4-06. Q4-07 included income from discontinued operations of $57.0 million [$0.42/share] comprised primarily of a $60.6 million after-tax gain on the sale of the UB’s retirement recordkeeping business, partially offset by expenses associated with the discontinued operations. Q4-06 included a credit of $78.1 million [$0.55/share] for California franchise tax refunds and adjustments. Income from continuing operations was $108.7 million [$0.78/share] compared with $1.61/share in Q4-06. The provision for loan losses was $56 million compared with $3 million in Q4-06. ROA was 1.74% compared to 0.95% in Q3-07 and 1.20% in Q4-07. ROE was 19.37% compared to 10.84% in Q3-07 and 14.14% in Q4-07. Book value at the end of Q4-07 was $32.86 compared to $33.71 at the end of Q3-07 and $34.37 at the end of Q4-06. FTE Net interest income was $441.0 million, down $6.3 million from Q4-06, primarily due to a deposit mix shift from noninterest bearing and low-cost deposits into higher-cost deposits, partially offset by strong loan growth and higher yields on earning assets. The average yield on earning assets of $50.2 billion was 6.16%, up 10 basis points over Q4-06, with the average loan yield increasing 7 basis points. The average rate on interest bearing liabilities of $35.6 billion was 3.74%, up 14 basis points compared with Q4-06, reflecting an unfavorable shift in deposit mix due to heightened competition for deposits. The net interest margin 3.51% compared with 3.80% in Q4-06. The noninterest income was $215.5 million, up $3.2 million [1.5%] from Q4-06. Service charges on deposit accounts in Q4-07 were $77.092 million; Trust and investment management fees $37.239 million; Insurance commissions $17.976 million; Trading account activities $15.421 million; Merchant banking fees $13.905 million; Brokerage commissions and fees $9.155 million; and Card processing fees $7.256 million. Nonperforming assets at December 31, 2007, were $57 million [0.10% of total assets] compared with $53 million [0.10%] at September 30, 2007, and $42 million [0.08%] at December 31, 2006. Net loan charged-offs were $3 million [0.04% of average total loans] compared with $2 million [0.02%] in Q3-07 and net recoveries of $1 million [0.01%] in Q4-06. UCBH Reports $0.19 vs. $0.27 in Q4-06 Business Wire 1-24 United Commercial Bank Holdings reported Q4-07 net income of $20.1 million [$.19/share] compared with net income of $26.5 million [$.27/share] in Q4-06. Q4-07 contained writedowns of two collateralized debt obligations and a larger loan loss provision [$8.1 million for Q4-07 compared with $1.4 million in Q4-06]. UCBH does not intend to sell the CDOs. ROA was 0.72% compared to 1.25% in Q4-06. ROE was 8.42% compared to 15.35% in Q4-06. Book value per share at the end of Q4-07 was $9.29 compared to$7.90 at the end of Q4-06. Net interest income before provision for loan losses was $86.1 million compared with $66.2 million for Q4-06. The net interest margin was 3.39% compared with 3.44% in Q3-07 and 3.34% Q4-06. The increase from Q4-06 reflects the effect of an 8 basis point increase in loan yields, and a 3 basis point decrease in the funding cost. The average cost of deposits was 3.65% compared with 3.76% for Q4-06. The noninterest income (loss) was ($2.5) million compared with $12.0 million for Q4-06. Included in noninterest income was an $11.6 million charge for writedowns on the two CDOs. Gain on sale of multifamily and commercial real estate loans was $748,000 compared with $4.5 million in Q4-06 due to a decrease in the volume of loan sales. Commercial banking fees were $4.8 million compared with $4.3 million in Q4-06. Service charges on deposit accounts were $1.9 million compared with $1.1 million in Q4-06. Net loan charge-offs were $2.2 million [0.12%] compared with $2.6 million [0.18%] in Q4-06. Total nonperforming assets were $46.6 million [0.39%] compared with $36.9 million [0.33%] at September 30, 2007. UMBF Reports $0.37 vs. $0.37 in Q4-06 Business Wire 1-24 UMB Financial Corporation reported Q4-07 earnings of $15.3 million [$0.37/share] compared to $15.8 million [$0.37/share] in Q4-06. Q4-07 included a charge of $4.6 million for Visa litigation and a $0.7 million net gain on a contingent payment received on the sale of the securities transfer product. ROA was 0.93% compared with 0.79% in Q4-06. ROE was 8.49% compared with 7.09% in Q4-06. Total shareholders' equity at the end of Q4-07 was $890.574 million with 41.279 million average shares outstanding resulting in a calculated book value of $21.57. Net interest income after provision for loan losses was $57.858 million compared to $55.641 million in Q4-06. Net interest margin increased 14 basis points to 3.55% as compared to Q4-06. Total earning assets were $7.170 bilion with an average yield of 5.92% compared to $6.904 billion at 5.88% in Q4-06. Total interest-bearing liabilities were $5.270 billion with an average yield of 3.23% compared to $5.029 billion at 3.39% in Q4-06. Noninterest income was $72.877 million compared to $65.012 million in Q4-06. Trust and securities processing fees were $30.454 million; Trading and investment banking $4.541 million; Service charges on deposits $19.945 million; Insurance fees and commissions $0.875 million; Brokerage fees $1.999 million; and Bankcard fees $10.541 million. Nonperforming loans were flat at December 31, 2007 and 2006 totaling $6.6 million. As a percentage of total loans, nonperforming loans were 0.17 percent of loans as of December 31, 2007 and 2006. Net loan charge-offs were $3.189 million [0.33% of average loans compared to recoveries of $0.387 million [0.04%] in Q4-06. UMPQ Reports $0.16 vs. $0.42 in Q4-06 Business Wire 1-24 Umpqua Holdings reported Q4-07 operating earnings of $9.6 million [$0.16/share] compared to $24.8 million [$0.42/share] for Q4-06. Q4-07 contained a charge for VISA litigation related to American Express ($3.9 million) and Discover ($1.2 million), reduced earnings per diluted share by $0.05/share; a reversal of $2.3 million in interest income related to new non-accrual loans [$0.02/share]; a provision for loan losses of $17.8 million [$0.18/share]; and the lower effective tax rate to represented an addition to income of $0.02/share. ROA was 0.46% compared to 0.64% in Q3-07 and 1.35% in Q4-06. ROE was 3.04% compared to 4.20% in Q3-07 and 8.47% in Q4-06. Book value per share at the end of Q4-07 was $20.67 compared to $20.60 at the end of Q3-07 and $19.91 at the end of Q4-06. Net interest income was $71.453 million before a $17 million provision for loans compared to $73.875 million before a $20 million provision in Q3-07 and $73.289 million before a $.125 million provision in Q4-06. FTE Net interest margin declined 20 basis points to 4.00%, of which 13 basis points related to interest reversal on new non-accrual loans. FTE Total yield on earning assets was 6.93% in Q4-07 compared to 7.24% in Q3-07 and 7.50% in Q4-06. Total cost of interest bearing liabilities was 3.71% compared to 3.86% in Q3-07 and 3.61% in Q4-06. Total non-interest income was $16.387 million compared to $18.543 million and $14.113 million in Q4-06. Service charges in Q4-07 were $8.478 million; Brokerage fees $2.444 million; and Mortgage banking revenue $2.019 million. Non-performing assets were $98.0 million [73% in California], or 1.18% of total assets, as of December 31, 2007. Of this amount, $9.8 million represented loans past due greater than 90 days and still accruing interest, $81.3 million of non-accrual loans, and $6.9 million of other real estate owned. Included in non-accrual loans is one $24.7 million relationship where management anticipates no loss on future resolution. Excluding this relationship, non-accrual loans total $56.6 million, with an average balance of $1.6 million. Net charge-offs in Q4-07 were $21.188 million [1.38% of loans and leases] compared to $.865 million [0.06%] in Q3-07 and $.510 million [0.04%] in Q4-07. WABC Reports $0.74 vs. $0.77 in Q4-06 Business Wire 1-17 Westamerica Bancorporation reported Q4-07 net income of $21.8 million [$0.74/share] compared to $22.0 million [$0.74/share] for Q3-07 and $24.0 million [$0.77/share] for Q4-06. Q4-07 results include a $2.3 million litigation expense for WABC’s proportionate share of Visa’s litigation. ROA for Q4-07 was 1.90% compared with 1.98% in Q4-06. ROE for Q4-07 was 21.7% compaered with 22.8% in Q4-06.Book Value per share at the end of Q4-07 was $13.60 compared with $13.74 at the end of Q3-07 and $13.89 at the end of Q4-06. FTE net interest income was $46.8 million compared to $45.6 million in Q3-07 and $49.0 million in Q4-06. Net interest margin increased to 4.53% compared to 4.34% in Q3-07 due to declining short-term interest rates, which allowed WABC to reduce their cost of funds. NIM was 4.49% in Q4-06. FTE Yield on Earning Assets was 6.11% compared with 6.14% in Q3-07 and 6.07% in Q4-06. The Cost of Funds was 1.58% compared with 1.80% in Q3-07 and 1.58% in Q4-06. Noninterest income totaled $14.7 million, unchanged from the prior quarter and compared to $13.7 million reported for Q4-06. The increase from the year ago quarter is due to higher deposit service charges and merchant card processing fees. Service Charges on Deposits in Q4-07 were $7.422 million; Merchant Credit Card Income $2.817 million; ATM Fees & Interchange $0.709 million; and Debit Card Fees $0.972 million. Non-performing assets were $5.8 million at December 31, 2007, compared to $5.7 million [0.21% of loans and leases] at September 30, 2007, $5.2 million [0.20%] at December 31, 2006 and $6.5 million [0.18%] at December 31, 2005. WTNY Reports $0.45 vs. $0.51 in Q4-06 PRNewswire 1-23 Whitney Holding Corp. reported Q4-07 earnings of $30.2 million [$0.45/share] compared with $33.9 million [$0.51/share] for Q4-06. During Q4-07 WTNY made a $10 million provision for credit losses. ROA was 1.12% compared to 1.34% in Q4-06. ROE was 9.54% compared to 11.93% in Q4-06. Book value at the end of Q4-07 was $18.67 compared to $16.88 at the end of Q4-06. FTE Net interest income was $117.782 million compared to $118.531 million in Q4-06. The Provision for credit losses were $10 million compared to $1 million in Q4-06. The Net interest margin was 4.75% compared with 5.14% in Q4-06. The rates on approximately 28%, or $2.1 billion, of the loan portfolio at year-end 2007 are tied to changes in Libor benchmarks, with another 25%, or $1.9 billion, tied to prime. Declines in Libor-based indices have lagged as overall market rates eased toward the end of the Q3-07 and again in Q4. The cost of funds increased 18 basis points between Q4-06 and Q4-07, mainly in response to the customer-driven shift in the funding mix toward higher-cost sources. Total interest-earning assets had an average yield of 6.74% compared to 6.95% in Q4-06. Total interest-bearing deposits had an average yield of 2.80% compared to 2.60% in Q4-06. Noninterest income was $24.080 million compared to $21.024 million in Q4-06. Service charges on deposit accounts were $8.126 million; Bank card fees $4.309 million; and Trust service fees $3.354 million. Net charge-offs were .21% of average loans compared to net recoveries of 0.02% of loans in Q4-06. Total nonperforming assets were $124.720 million [1.64% of loans plus foreclosed assets and surplus property] compared to $91.208 million [1.22%] at the end of Q3-07 and $56.792 million [0.81%] at the end of Q4-06. ZION Reports $0.39 vs. $1.32 in Q4-06 Business Wire 1-24 Zions Bancorporation reported Q4-07 net earnings of $42.2 million [$0.39/share] compared to $142.7 million [$1.32/share] for Q4-06. Q4-07 contained impairment and valuation losses on securities of $158.2 million [$0.89/share] and Visa litigation accrual of $8.1 million [$0.05/share]. ROE was 3.29% compared to 10.50% for Q3-07 and 12.08% for Q4-06. ROA was 0.35% compared to 1.10 in Q3-07 and 1.27% in Q4-06. Book value per share was $47.17 compared to $44.48 at the end of Q4-06. FTE net interest income was $485.2 million compared to $483.1 million for Q3-07 and $465.3 million for Q4-06. The net interest margin was 4.27% compared to 4.44% for Q3-07 and 4.60% for Q4-06. Factors influencing the decline in NIM were strong loan growth funded mainly by increased nondeposit borrowings, purchases of Lockhart commercial paper, and competitive deposit pricing pressures. Total interest-earning assets were $45.106 billion earning $833.791 million at an average yield of 7.33%. Total interest-bearing liabilities were $35.627 billion costing $348.634 million at an average yield of 3.88%. As a result of the $158.2 million of impairment and valuation losses on securities, noninterest income was a loss of $20.2 million compared to $145.8 million for Q3-07 and $139.9 million for Q4-06. Service charges and fees on deposit accounts was $48.130 million; Other service charges, commissions and fees was $50.128 million; Dividends and other investment income was $13.830 million; while the Impairment losses on AFS securities from Lockhart Funding caused a loss of $158.208 million. Nonperforming assets were $283.9 million [0.73% of net loans and leases and ORE] at December 31, 2007 compared to $196.6 million [0.52%] at September 30, 2007 and $82.0 million [0.24%] at December 31, 2006, primarily reflecting continuing weakness in residential development and construction activity in the Southwest. Net loan and lease charge-offs were $26.7 million [0.28% annualized of average loans] compared with $18.1 million [0.19%] for Q3-07 and $17.9 million [0.21%] for Q4-06. From the Conference call: Lockhart was created in 2000 by Zion as QSPE or qualified special purpose entity to generate fee income for ZION. Lockhart has paid $185 milion in fees to ZION since its insception. Lockhart was designed to hold high quality assets that are rated AAA are government issued or government guarantee securities. Liquidity support for Lockhart is triggered when [1] any security owned by Lockhart is downgraded below AA- by any ratings agency - and that securities are then purchased by ZION at face and booked by Lockhart at fair value - the difference is a charge against income to ZION. [2] The second trigger is - if Lockhard is unable to fund itself by selling commercial paper, then ZION's buys sufficient commercial paper so that Lockhart has liquidity. The amount of asset backed commercial paper declined globaly by 34% late in 2007. Lockhart could not meet funding obligations and the second trigger was set in motion. ZION purchased $840 million of securities [commercial paper] and took a $33 million write down on those securities. Plus 2 securities owned by Lockhart was downgraded so ZION bought $55 million in those two securites generating a $17 million loss. Why can't ZION make Lockhart go away? ZION does not have control of Lockhard. If ZION purchased over 90% of securities issued by Lockhard - then Lockhard would have to disolve. ZION is prepared to do that if the need arises. Ratings & Dividend Changes On 1-16 Citi Initiated coverage of RF at hold. On 1-16 CNB declared an increased dividend of $0.19/share [compared to $0.1875 paid in 2007] to be paid on February 8, 2008 to shareholders of record as of the close of business on January 25, 2008. On 1-17 RF declared a dividend of $0.38/share payable April 1, 2008, to stockholders of record as of March 18, 2008. On 1-23 UB declared a $0.52/share to be paid on 4-04-08 to shareholders of record as of 3-07-08. On 1-25 EWBC declared a dividend of $0.10/share payable on or about 2-20-08 to shareholders of record on 2-06-08. On 1-25 WABC declared a dividend of $0.34/share payable on 2-15 to shareholders of record as of 2-04. On 1-25 ZION declared a dividend of $0.43/share payable on 2-20 to shareholders of record as of 2-06. On 1-25 CFR declared a dividend of $0.40/share payable on March 14 to shareholders of record as of Feb. 29. On 1-2 |