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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. This is the link to the 2007 stats page. BOKF Reports $0.84 vs. $0.89 in Q3-07 Businesswire 10-29 Tulsa's BOK Financial reported Q3-08 earnings of $56.7 million [$0.84/share] compared with a net loss of $1.2 million [- $0.02/share] for Q2-08 and net income of $59.8 million [$0.89/share] for Q3-07. Transactions related to the SemGroup LP and Lehman Brothers bankruptcies increased net income by $4.5 million [$0.07/share] for Q3-08 and decreased net income by $57.0 million [$0.84/share] for Q2-08. ROA was 1.03%. ROE was 11.70%. Book value per share was $28.78. Tier 1 ratio was 9.25%. Tangible capital ratio was 7.16%. BOKF's securities portfolio totaled $6.7 billion at September 30, 2008. The portfolio consisted primarily of mortgage-backed securities, including $4.8 billion fully backed by U.S. government agencies and $1.5 billion privately issued by publicly-owned financial institutions. The portfolio does not hold any securities backed by sub-prime mortgage loans, CDO or CLOs. Net unrealized losses on the portfolio of available for sale debt securities totaled $156 million at September 30, 2008. These unrealized losses were determined to be temporary. Approximately $439 million of the privately issued mortgage-backed securities consisted of Alt-A mortgage loans. The securities portfolio also included $32 million of preferred stocks issued by seven financial institutions. The fair value of these was $24 million at September 30, 2008. BOKF determined that the $8.5 million of unrealized losses on these securities were temporary. BOKF does not own any equity securities issued by Fannie Mae or Freddie Mac. Net interest revenue totaled $164.3 million, up $5.4 million over Q2-08 and $24.9 million over the Q3-07. Net interest margin was 3.48% compared with 3.44% in Q2-08 and 3.27% in Q3-07. Growth in net interest revenue and net interest margin was due largely to increased earning assets and widening spreads. Total FTE yield on earning assets was 5.55% compared with 6.99% in Q3-07. Total cost of interest- bearing liabilities was 2.41% compared with 4.39% in Q3-07. Fees and commissions revenue totaled $126.7 million compared with $63.6 million in Q2-08 and $103.7 million in Q3-07. Fees and commissions grew $16.9 million over Q3-07, excluding SemGroup and Lehman related items, due largely to brokerage and trading revenue. Net loans charged off were $20.2 million [0.64% of average loans] compared with $4.869 million [0.17%] in Q3-07. Non-performing assets totaled $252 million [1.98% of loans + OREO], up from $181 million [1.45%] at June 30, 2008. [NPAs in the Arizona market totaled $58 million or 9.47% of loans + OREO.] The increase in non-performing assets included an expected $36 million of unpaid amounts due from SemGroup in settlement of funded letters of credit and derivative contracts which terminated during the third quarter. With total assets of $22.378 billion, NPAs were 1.13% of assets. BOH Reports $0.99 vs. $0.96 in Q3-07 Businesswire 10-27 Bank of Hawaii reported net income of $47.4 million [$0.99/share] compared with $47.8 million [$0.96/share] in Q3-07. Financial results for Q3-08 included an $8.9 million net credit related to BOH's pending resolution of Sale In/Lease Out leases with the Internal Revenue Service. ROA was 1.82%. ROE was 24.17%. Book Value was $16.35. Tier 1 leverage ratio was 7.27%. FTE Net interest income was $103.8 million compared with $98.8 million in Q3-07. The net interest margin was 4.33%, a 30 basis point increase from 4.03% in Q3-07. Total Earning Assets of $9.583 billion earned $132.8 million at an average yield of 5.53%. Total Interest-Bearing Liabilities of $7.577 billion cost $29.0 million at an average yield of 1.52%. [Why was the cost so low? It was cheaper Total Interest-Bearing Deposits of $6.178 billion that made up most of the liabilities and they had an average yield of only 1.14%.] Noninterest income was $57.0 million, a decrease of $4.3 million compared to $61.2 million in Q3-07. The decrease in noninterest income was largely due to accounting volatility in mortgage banking income, the timing of contingent insurance commission income, and lower investment management fees. Net charge-offs were $7.4 million [0.45% of average loans and leases] compared with $4.1 million [0.25%] during Q3-07. Non-accrual loans and leases were $5.6 million [0.09% of loans and leases] at September 30, 2008, up from $4.2 million at September 30, 2007. Total non-performing assets were $5.9 million, up from $4.3 million at the end of the same quarter last year and down from $6.7 million at the end of Q2-08. The ratio of non-performing assets to total loans and foreclosed real estate at September 30, 2008 was 0.09%, up from 0.06% at September 30, 2007 and down from 0.10% at June 30, 2008. With total assets of $10.335 billion, NPAs were 0.06% of assets. BXS Reports $0.34 vs. $0.44 in Q3-07 PRNewswire 10-20 BancorpSouth reported Q3-08 net income of $28.3 million [$0.34/share] compared with $36.3 million $0.44/share in Q3-07. ROA was 0.85% and the ROE was 9.16%. Book value per share was $14.96. Net interest revenue was $109.6 million. Net interest margin was 3.67% compared to 3.66% in Q3-07. Non-interest revenue was up 9.6% to $63.4 million compared with $57.9 million for Q3-07. This growth was driven by a 24.2% increase in insurance commission revenue to a record $21.8 million and an 11.0% increase in credit and debit card revenue. Non-performing loans and leases were $65.2 million [0.68% of loans and leases compared with $31.3 million (0.35%) at September 30, 2007] plus OREO of $32.479 million resulted in NPAs of $97.653 million [$42.303 million in Q3-07]. With total assets of $13.305 billion, NPAs were a calculated 0.73% of assets. With Loans and leases, net of unearned interest, of $9,530 billion, NPAs were 1.02% of loans. Net charge-offs of 0.45% of average net loans and leases. Analyst Updates after the earnings release: On 10-21 Sandler O'Neill & Partners analyst Kevin Fitzsimmons cut his full-year profit estimate for BSX by 13 cents to $1.52 per share. "What was evident this quarter was not only that credit costs were going higher, but that pretax pre-provision income contracted -- which could make it more difficult for the company to absorb a higher pace of credit losses and cover the dividend in future quarters," Fitzsimmons wrote in a note to clients. He maintained a "Hold" rating on the shares. CATY Reports $0.14 vs. $0.68 in Q3-07 PRNewswire 10-23 LA's Cathay General Bancorp reported Q3-08 Net income of $6.9 million [$0.14/share] compared to $34.0 million [$0.68/share] in Q3-07. Included in the results was a non-cash after-tax charge of $20.3 million [$0.41/share] for "other-than-temporary" impairment on agency preferred securities. Excluding the impairment charge EPS was $0.55/share. ROA was 0.25%. ROE was 2.71%. Book value per share was $20.25. Tier 1 risk-based capital ratio was 9.39%, total risk-based capital ratio was 11.09%, and Tier 1 leverage capital ratio was 7.65%. Net interest income before provision for credit losses decreased to $73.6 million compared to the $79.8 million during Q3-07. The decrease was due primarily to the decline in the net interest margin which was partially offset by strong growth in loans and investment securities. The FTE net interest margin was 2.88% compared with 3.69% in Q3-07. The decrease primarily resulted from the lag in the downward repricing of certificates of deposit following the decreases in the prime rate, a change in the mix of investment securities, and the increase in the borrowing rate on our long term repurchase agreements. The FTE yield on average interest-earning assets was 5.70% and the cost of funds on average interest-bearing liabilities equaled 3.21%. Non-interest income was negative $8.4 million compared to the non-interest income of $8.9 million for Q3-07. Net Charge-offs were $9.127 million compared with $1.283 million in Q3-07. At September 30, 2008, total non-accrual loans of $101.1 million included thirteen construction loans totaling $65.5 million, fourteen commercial real estate loans totaling $10.7 million, five land loans totaling $8.8 million, twenty-two commercial loans totaling $10.7 million, and ten residential mortgage loans totaling $5.4 million. OREO was $43.4 million and comprised of thirteen properties, including $13.5 million land zoned for residential and retail purposes in Riverside County, California, $11.6 million for land zoned for apartments in Anaheim, California, an $8.1 million apartment building in Texas, a $6.8 million shopping center in Texas, a $1.4 million hotel in Texas, and seven other properties totaling $2.0 million. Total non-performing assets were $144.5 million [1.92% of loans + OREO]. With Total assets of $11.050 billion, NPAs were 1.30% of assets. CBSH Reports $0.36 vs. $0.77 in Q3-07 Businesswire 10-15 Commerce Bancshares announced earnings of $26.5 million [$.36/share] compared to $55.9 million [$.77/share] in Q3-07. CBSH purchased auction rate securities from its customers, which resulted in a pre-tax non-cash expense of $33.0 million [$.29/share] and increased its allowance for loan losses by $10.8 million this quarter, raising the allowance from 1.31% to 1.42% of average outstanding loans. ROA was 0.64% compared to 1.43% in Q3-07. ROE was 6.52% compared to 15.10% in Q3-07. Book value per share was $22.20. Tier I leverage ratio was 9.12%. Net interest income amounted to $151.6 million, an increase of $6.8 million [4.7%] compared with Q2-08 and an increase of $16.3 million [12.1%] compared Q3-07. FTE net yield on earning assets was 4.02%, compared with 3.87% in Q2-08 and 3.77% in Q3-07. Total non-interest income amounted to $95.6 million, an increase of .5% compared to $95.1 million in Q3-07, and a decrease of 7.0% compared to $102.7 million recorded in Q2-08. Non-Accrual Loans of $41.600 million [compared to $25.962 million in Q3-07] plus Foreclosed Real Estate [OREO] of $4.622 million [compared to $15.408 million in Q3-07] resulted in Total Non-Performing Assets of $46.222 million [compared to $41.370 million in Q3-07. Non-Performing Assets to Loans was .42% [.40% in Q3-07] while Non-Performing Assets to Total Assets was .27% [.26% in Q3-07]. Loans 90 Days & Over Past Due and Still Accruing were $31.878 million [$19.227 million in Q3-07]. Net loan charge-offs amounted to $18.7 million, compared with $14.5 million in Q2-08 and $11.5 million in Q3-07. CFR Reports $0.82 vs. $0.95 in Q3-07 PRNewswire 10-22 Cullen/Frost Bankers reported Q3-08 earnings $49.0 million [$0.82/share] compared to the $56.5 million [$0.95/share] reported for Q3-07. Approximately $10 million [$.11/share] provision for possible loan losses was related to the projected impact of Hurricane Ike on CFR's operations in the Houston and Galveston markets. ROA was 1.44%. ROE was 12.39%. Book value was $27.16. Tier 1 ratio was 10.3% and Total Risk-Based Capital Ratio was 12.7%. These same ratios for Frost Bank were 10.4% and 11.9%. FTE net interest income was $139.7 million compared to the $134.7 million for Q3-07. The net interest margin was 4.74%, an increase of five bps compared to 4.69% for Q3-07. Non-interest income was $77.3 million [up 9.3%] while Trust income was $19.7 million [up 11.3%] and Service charges on deposit accounts was $22.6 million [up 9.4%]. Net charge-offs were $6.4 million [0.30% of loans and leases]. Non-accrual loans of $45.475 [compared with $21.356 million in Q3-07] plus OREO of $9.683 million [$5.023 million] resulted in total Non-performing assets of $55.158 million [$26.379 million]. NPAs were 0.64% [0.35%] of Total loans and OREO and 0.39% [0.20%] of total assets. From the Conference Call: Interest rate and margin outlook? CFR: We do not have another fed cut factored in. One project one more cut in prime. Impact of pull-back in energy prices? CFR: Job growth of 1.5% in Texas [Houston at 2.3%] and 1% projected in 2009. Natural gas at $6 is pretty much what it has been since 2004. Oil at $70 - we were there in 2005. Houston could show some slowing. Houston was shut down three weeks before the power came back on. Some 75% of Galveston homes had water damage. Texas economy is diversified. CFR has escape clause on loans at $45 oil and $4 on natural gas. Chesapeak has cut back. The hurricane has slowed things down right now - but there is a dead cat bounce expected from the increase in construction. Did CFR experience a revenue loss due to Ike? No. Staff did incredible job of getting banks back up. Pearland had roof fall in and the two Galveston locations being rebuilt. There was $1 million in extra charges due to Ike -and we project that Ike charges will not leak into Q4. Capital is higher than normal. CFR: We have been bulding capital back up - it is a prudent thing to do in this economy. Non-reccurring item - $1.1 million in previously charged off interest recovery. CFR saw slower pay downs on lonas and more advances in lines of credit. Historically 70% of growth tends to come from existing customers. Growth from prospects is now greater. This is the result of five years of having a great calling program. Are you seeing more rational loan pricing from your competitors? CFR: for the last 5-10 years the financial industry did not charge for risks. Deposit pricing is moving up - and loan prices are moving up with it. Pricing is beginning to get rational - but we are in the early stages. We take deposits from folks we know and lend to folks we know. That is what we call relationship banking. That was not the model for the financial industry the last ten years. CNB Reports - $0.35 vs. $0.45 in Q3-07 Businesswire 10-22 Montgomery, Alabama's Colonial BancGroup reported a Q3-08 net loss of $71.200 million [- $0.35/share] compared with $69.355 million [$0.45/share] in Q3-07. ROA was -1.09%. ROE was -11.93%. Book value per common share was $11.81. Tier 1 Risk Based Capital was 10.00%. Total Risk Based Capital was 14.17%. Tier 1 Leverage Ratio was 7.29%. Tangible capital ratio was 6.43%. Net interest income was $166.749 million compared with $ 196.011 million in Q3-07. The Provision for loan losses was $159.399 million compared with $4.800 million in Q3-07. The Net interest margin was 2.85% compared with 3.65% in Q3-07. Total interest earning assets of $23.607 billion earned $338.542 million at an average yield of 5.71% [7.32% in Q3-07]. Total interest bearing liabilities of $20.260 billion cost $169.668 million at an average yield of 3.33% [4.34% in Q3-07] {Why was the cost of liabilities so high? Total interest bearing deposits 15.577 billion had an average yield of 3.00% - with time deposits making up over half.] Core noninterest income of $51.697 million minus Securities and derivatives losses of $6.057 million resulted in Total noninterest income of $45.640 million. Colonial charged-off $121 million [3.17% of average loans] compared to $73 million [1.85%] for Q2-08. Nonaccrual loans of $542.785 million plus OREO of $134.951 million resulted in Total nonperforming assets were $677.736 million. The ratio of nonperforming assets to net loans and OREO was 4.43%, compared to 2.62% at June 30, 2008. Colonial’s problem assets remain primarily isolated to the residential construction portfolio and concentrated in Florida markets. With Total Assets of $26.263 billion, NPAs were 2.58% of assets. CYN Reports $0.34 vs. $1.22 in Q3-07 Businesswire 10-29 LA's City National reported Q3-08 net income of $16.6 million [$0.34/share] compared with $60.1 million [$1.22/share] in Q3-07. Excluding charges of $19.6 million [$0.40/share] for the impairment of Fannie Mae, Freddie Mac and other securities, Q3-08 net income amounted to $36.2 million [$0.74/share]. ROA was 0.41%. ROE was 3.91%. Book value was $34.61. Total risk-based capital was 11.0%. Tier 1 risk-based capital ratio was 9.1%. Tier 1 leverage ratios was 8.01%. FTE net interest income [before provision] was $157.1 million compared with $158.1 million in Q3-07. The Provision for Credit Losses was $35.000 million compared with zero in Q3-07. Net interest margin averaged 4.23% compared with 4.42% in Q3-07. Total interest-earning assets of $14.768 billion had an average yield of 5.38% [6.55% in Q3-07]. Total interest-bearing liabilities of $8.654 billion had an average yield of 1.97% [3.67% in Q3-07]. Noninterest income was $50.1 million. Excluding securities impairment charges, noninterest income totaled $82.6 million, up 2% from Q3-07. Net charge-offs totaled $12.8 million [0.42% of loans and leases] compared with $18.9 million [0.63%] in Q2-08 and $3.6 million [0.13%] in Q3-07. Nonaccrual loans of $150.9 million plus OREO of $2.3 million resulted in non-performing assets of $153.2 million [1.25% of total loans and other nonperforming assets] up from $115.3 million [0.95%] in Q2-08 and $26.2 million [0.23%] at September 30, 2007. With total assets of $16.3 billion, NPA's were 0.94% of assets. EWBC Reports - $0.50 vs. $0.67 in Q3-07 Businesswire 10-27 Pasadena's East West Bancorp reported for Q3-08 a loss of [$0.50/share] compared with $41.336 million [$0.76/share] in Q3-07. Excluding provision for loan losses and securities impairment charges, East West reported total pretax income of $48.0 million [$0.77/share]. EWBC recorded OTTI charges comprised of $47.0 million on Fannie and Freddie preferred stock and $6.6 million on pooled trust preferred securities. ROA was -1.07%. ROE was -10.06%. Book value per share was $16.54. Leverage Capital Ratio was 9.84%. Tier 1 Capital Ratio was 11.12%. Total risk-based capital increased to 13.12%. Net interest income before provision for loan losses was $86.515 million while the Provision for loan losses was $43.000 million. Net interest income after provision was $43.515 million compared with $100.854 million in Q3-07. The net interest margin was 3.10% compared to 3.33% in the prior quarter. The 23 bps decrease was primarily comprised of a 12 bps decrease due to the reinvestment of loan payoffs into lower yielding Treasury securities and fed funds assets, an 8 bps decrease due to the impact of fed funds rate decreases during the year and a 3 bps decrease due to the repricing of repurchase agreements into higher fixed rates. Yield on earning assets was 5.73%. The Cost of deposits was 2.17% while the total Cost of funds was 2.82%. Noninterest income before impairment writedown on investment securities was $10.017 million while the Impairment writedown on investment securities was $53.567 million. Noninterest loss was $43.550 million compared to income of $13.588 million in Q3-07. Net chargeoffs were $39.7 million compared to $34.8 million during Q2-08. Of the total net charge-offs, 82% or $32.7 million of the total net charge-offs were land and residential construction loans. Nonaccrual loans of $177.3 million plus OREO of $17.6 million plus loans modified or restructured totaling $5.7 million resulted in total nonperforming assets of $200.6 million [1.71% of total assets]. Residential construction and land portfolios comprised $119.1 million or 67% of total nonaccrual loans. During the quarter, EWBC sold six REO assets with a carrying value of $18.4 million and sold twelve nonperforming loans with a carrying value of $75.2 million. FNB Reports $0.27 vs. $0.29 in Q3-07 GlobeNewswire 10-23 Hermitage, PA F.N.B. Corporation reported Q3-08 net income of $23.5 million [$0.27/share] compared to $17.6 million [$0.29/share] for Q3-07. ROE was 10.0%. ROA was 1.13%. Shareholders’ equity totaled $971.1 million at September 30, 2008, or $10.83 per common share. Equity/assets ratio was 11.48%. The Leverage ratio was 7.97%. Tangible equity/tangible assets ratio was 5.00%. Net interest income was $70.5 million. In addition to the growth in loans and deposits, the net interest margin improved to 3.97%, compared to 3.73% in Q3-07. The wider margin reflects slightly better pricing during the quarter and a 3 bps benefit from returning certain previously non-accruing loans to accrual status based on sustained payment performance. The FTE Yield on earning assets was 6.20%. The Cost of funds 2.50%. Non-interest income totaled $28.2 million. Non-interest income represented 29% of net revenue. During the quarter FNB placed two larger credits on non-accrual and transferred one non-accruing loan to OREO. These actions resulted in a $21.1 million net increase in non-performing assets to $92.232 million. Non-performing assets to loans and OREO was 1.57%. Overall asset quality conditions in the Corporation’s Pennsylvania and Ohio markets continue to be good with non-performing assets less than 1% of those loans and OREO. FNB's Florida loan portfolio represents only 5% of total loans, Florida’s non-performing assets represent 38%, or $35.0 million, of FNB's total non-performing assets. With total assets of $8.265 billion, NPAs were 1.11% of assets. Net loan charge-offs were $4.323 million or 0.30% of average loans. FHN Reports - $0.59 vs. $0.xx in Q3-07 GlobeNewswire 10-17 First Horizon National reported for Q3-08 a net loss of $118.3 million [-$0.59/share]. ROA was (1.41)% while ROE was (17.30)%. Book Value was $12.79. Tier 1 ratio was 10.90%. Tier 1 Ratio was 10.92%. Tier 2 Ratio was 4.90%. Total Capital Ratio was 15.82%. The Leverage Ratio was 8.86%. Net interest income was $223.147 million. The Net interest margin was 3.01%. Total earning assets had an average yield of 5.17%. Total interest-bearing liabilities had an average yield of 2.52%. Noninterest income was $305.383 million. Net charge-offs increased to $154.7 million. The net charge-off ratio was 284 bps. Total nonperforming assets were $1.015 billion. NPAs to total loans plus OREO was 4.63%. With total assets of $32.804 billion, NPAs were 3.36% of assets. GBCI Reports $0.24 vs. $0.33 in Q3-07 PRNewswire 10-23 Glacier Bancorp reported Q3-08 net earnings of $12.785 million [$0.24/share] compared to $17.639 million [$0.33/share] for Q3-07. Included in Q3-08 is a $7.6 million nonrecurring impairment charge (after-tax) for Freddie Mac preferred stock and Fannie Mae common stock and a nonrecurring gain (after-tax) of $1.0 million ($.02 per share) from the sale and relocation of Mountain West Bank's office facility in Ketchum, Idaho. ROA was 1.01%. ROE was 9.15%. Book value was $10.29. Net interest income was $53.576 million compared with $46.983 million in Q3-07. The FTE net interest margin as a percentage of earning assets was 4.65% compared with 4.75% in Q2 and 4.50% in Q3-07. Total Earning Assets of $4.689 billion earned $75.689 million at an average yield of 6.46%. Total Interest Bearing Liabilities of $3.716 bo;;opm cost $22.113 million at an avaerage yield of 2.36%. Total non-interest income was $11.754 million compared with $16.478 million - with the decrease due to the Freddie/Fannie impariments. Net charge-offs as a percentage of total loans was 0.128%. Non-accrual loans of $56.322 million [vs. $7.505 million in Q2-07 (and only $19.674 million in Q2-08)] plus OREO of $9.506 million [$1.750 million] plus Accruing Loans 90 days or more overdue of $4.924 million [$2.467 million] resulted in Total non-performing assets of $70.752 million [$11.722 million]. NPAs as a percentage of total bank assets was 1.30% compared with 0.58% in Q2 and 0.24% in Q3-07. GBCI placed a couple of construction and development credits on non-accrual because of little or no sales activity for the past 90 days and wrote down three credits by approximately $2.5 million. HBHC Reports $0.50 vs. $0.55 in Q3-07 GlobeNewswire 10-21 Hancock Holding Company reported Q3-08 net income of $16.0 million [$0.50/share] compared with $17.7 million [$0.55/share] in Q3-07. Two causes for the income fall: [1] HBHC had a 30% annualized increase in loans and thus the need to set aside an appropriate level of reserves for loan losses; and [2] HBHC had an additional $1.7 million in net charge-offs due to rising past-due commercial loans whose collateral values had declined. Hurricane Gustav made landfall on the southeastern Louisiana coast on 9-01-08 and significantly impacted Hancock's markets in Baton Rouge and Alexandria. HBHC incurred $560 thousand in operating expenses (clean up and repair costs, fuel, lodging and other miscellaneous costs) and also rebated to customers $294 thousand in return item fees and other service charges. HBHC incurred no major damage to any facilities. The total pretax impact of the costs and fees rebated was $854 thousand [$0.02/share]. ROA was 1.00%. ROE was 10.90%. Book value was $18.95. Leverage (Tier I) ratio was 8.66%. Net interest income was $57.417 million compared with $53.515 million in Q3-07. The FTE net interest margin was 3.99%. With short-term interest rates down significantly from a year ago, HBHC's loan yield fell 124 bps, pushing the yield on average earning assets down 80 bps. However, total funding costs over the past year were down only 73 bps. Noninterest income [excluding securities transactions] was $30.194 million compared with $31.198 million in Q3-07. Net charge-offs were $4.2 million, or 0.42% of average loans. Non-accrual loans of $21.875 million [$8.500 million in Q3-07] plus OREO of $2.197 million [$1.374 million] resulted in Total non-performing assets of $24.072 million [$9.874 million]. NPAs were 0.59% of loans plus OREO. Accruing loans 90 days past due were $6.082 million resulting in adjusted NPAs of $30.154 million or 0.74% of loans + OREO. With toital assets of $6.744 billion, adjusted NPAs were 0.44% of assets. UMPQ Reports $0.23 vs. $0.22 in Q3-07 Businesswire 10-16 Umpqua Holdings announced Q3-08 net income of $13.6 million [$0.23/share] compared to $13.2 million [$0.22/share] for Q3-07. This includes a provision for loan losses of $35.5 million [$0.35/share] and a gain on fair value of junior subordinated debentures of $25.3 million [$.25/share] based on widening spreads for new issuances. ROA was 0.65% while ROE was 4.34%. Book value per share was $20.76. Tangible equity to tangible assets 6.45%. Net interest income [before the provision for loan and lease losses] was $73.708 million compared to $73.875 million in Q3-07. The provision for loan and lease losses was $35.454 million compared to $20.420 million in Q3-07. FTE Net interest margin decreased 3 bps during the quarter to 4.12%. Excluding reversals of interest on loans of 4 bps, the net interest margin would have increased 1 bps during the quarter. Total yield on earning assets was 6.11% compared to 7.24% in Q3-07 while Total cost of interest bearing liabilities was 2.50% compared to 3.86% in Q3-07. Total non-interest income was $34.471 million compared to $18.543 million, with the increase due to the $25.3 million gain on fair value of junior subordinated debentures compared to a gain of $4.138 million in Q3-07. Non-performing assets were $128.1 million [1.54% of total assets] compared to $104.4 million [1.25%] as of June 30, 2008. Of this amount, $6.4 million represented loans past due greater than 90 days and still accruing interest, $111.9 million represent non-accrual loans, and $9.8 million is OREO. Approximately 71% of non-performing assets are from the residential development loan segment of the portfolio. Non-performing loans ended the quarter at 1.92% of total loans. Loans past due 30-89 days were $71.684 million [1.16% of total loans & leases] compared to $60.238 million [0.99%] in Q3-07. Total net charge-offs were $15.2 million [0.98% of average loans], a decrease of 60% from the second quarter of 2008. PACW Reports $0.35 vs. $0.47 in Q2-08 PRNewswire 10-16 PacWest Bancorp announced Q3-08 net operating earnings of $9.6 million [$0.35/share] compared to $12.8 million [$0.47/share] for Q2-08. The decrease is due mainly to a higher credit loss provision. Net operating earnings for the Q2 do not include charges for the goodwill write-off, a legal settlement and reorganization costs; there were no such charges in Q3-08. When these items are included, the net loss for the second quarter of 2008 was $474.5 million [$17.47/share]. ROA was 0.88% while ROE was 10.10%. Book value per share was $13.36 compared to $40.65 at the end of 2007. Tier 1 leverage capital ratio was 11.14%; Tier 1 risk-based capital ratio was 10.92% and Total risk-based capital was 12.18%. Net interest income totaled $55.0 million compared to $55.8 million for Q2-08. Loan interest income declined $824,000 due mostly to lower average construction and commercial loan balances. Interest expense was $81,000 lower due to lower average borrowings. The net interest margin was 5.42%, a decrease of 2 bps compared to Q2-08. The yield on average loans was 7.02% for Q3-08 compared to 7.04% for Q2-08. The yield on average earning assets was 6.95% compared to 6.97% for Q2-08. Deposit pricing caused the cost of interest bearing deposits to increase 3 bps to 1.84% and all-in deposit cost to increase 1 basis point to 1.12%. The cost of deposits crept up from 1.07% in July to 1.15% in September due to the competition for liquidity and the use of certificates of deposit, both Bank-promoted and wholesale, to fund loan growth and deposit flows. Our relatively low cost of deposits is driven by demand deposit balances, which averaged 39% of average total deposits during Q3-08. The overall cost of interest-bearing liabilities was 2.34%, up 2 bps from Q2-08 due mostly to higher deposit costs. Noninterest income totaled $6.0 million compared to $5.4 million in Q2-08. Nonperforming assets include nonaccrual loans and OREO and totaled $70.2 million compared to $74.0 million at the end of June. OREO totaled $13.3 million compared to $9.9 million at the end of June. The increase in OREO is due to six foreclosures totaling $4.7 million and writedowns of $1.1 million offset by one sale for $263,000. The ratio of nonperforming assets to loans and real estate owned declined to 1.78% at September 30, 2008 compared to 1.89% at June 30, 2008. [With assets of $4.363 billion, the self-calculated NPAs to assets was 1.60%.] Net charge-offs were $7.402 million or 0.76% of average loans. PCBC Reports - $1.03 vs. $0.08 in Q3-07 Businesswire 11-06 Santa Barbara, California's Pacific Capital Bancorp reported for Q3-08 a net loss of $47.5 million [- $1.03/share] compared to net income of $3.9 million [$0.08/share] in Q3-07. Results for Q3-08 included a provision for loan losses of $64.0 million, and a 22.1 million non-cash charge to reflect an impairment of Goodwill related to PCBC's Commercial Banking segment. ROE was -27.00%. ROA was -2.49%. Book value was $13.90. Tier 1 tangible asset ratio was 7.7%. Tier 1 capital to Risk Weighted Assets ratio was 9.1%. Total risk weighted capital ratio was 11.9%. The net interest income was $60.8 million compared with $60.0 million in Q3-07. Net interest income for the Core Bank was $61.5 million compared with $60.5 million in Q3-07. The increase in Core Bank net interest income is primarily attributable to an increase in earning assets, partially offset by a decline in net interest margin. The net interest margin was 3.57% compared with 3.65% in Q3-07. Total interest-earning assets of $6.989 billion earned $104.553 million at an average yield of 5.95%. Assets were comprised of $1.182 billion in securities earning at a yield of 5.35% and loans of $5.780 billion earnings at a yield of 6.12%. Total interest-bearing liabilities of $5.833 billion cost $41.911 million at an average yield of 2.86%. Interest bearing liabillities were comprised of $3.741 billlion in deposits at a 1.97% yield and $2.092 billion in borrowings at a 4.44% yield. Non-interest income was $16.7 million compared with $17.3 million in Q3-07. The decline was primarily attributable to a mortgage-backed securities impairment loss of $797,000, offset by trading portfolio gains of $374,000. The disruption in the credit markets has restricted the availability of funding for the 2009 RAL and RT season. As a result, the Company may not be able to establish a securitization vehicle for the 2009 RAL program. As a potential alternative, the Company is currently in the process of securing commitments from a variety of institutions that would participate in a RAL syndication program. It is possible that the Company will also retain more RALs on its own balance sheet in the 2009 program. Total non-performing loans of $166.407 million plus OREO of $5.181 million resulted in Total non-performing assets of $171.588 million [2.23% of total assets]. Net charge-offs of $18.1 million were 1.25% of total average loans. PRSP Reports $0.33 vs. $0.54 in Q3-07 PRNewswire 10-17 Prosperity Bancshares reported Q3-08 earnings of $15.447 million [$0.33/share] compared to $23.848 million [$0.54/share] for Q3-07. The decrease was primarily due to a $9.116 million after-tax ($14.025 million pre-tax) impairment charge on Fannie Mae and Freddie Mac perpetual preferred securities. Excluding the impairment charge on Fannie and Freddie, net income for the quarter would have been $24.563 million [$0.53/share]. ROA was 0.91% while ROE was 5.04%. Book value per share was $26.68. Tier 1 risk-based capital was 13.31%. Tier 1 leverage capital was 7.75%. Total risk-based capital was 14.29%. Net interest income before provision for credit losses was $57.806 million compared with $51.369 million during Q3-07. Average earning assets increased 10% while the rate paid on liabilities decreasing at a faster pace than the yield on assets. The FTE net interest margin increased to 4.15% compared with 4.07% for Q3-07. Total interest earning assets of $5.600 billion earned $84.846 million at an average yield of 6.03% [6.86% in Q3-07]. Total interest bearing liabilities of $4.254 billion cost $27.040 million at an average yield of 2.53% [3.73% in Q3-07]. Non-interest income decreased $1.042 million to $13.117 million compared with $14.159 million for Q3-07. The decrease was mainly attributable to (1) a decrease in net gain/loss on sale of ORE, held for sale loans and other assets (2) a decrease in dividends paid on Federal Home Loan Bank stock and income from Bank Owned Life Insurance, both of which are related to the recent decline in interest rates and (3) partially offset by an increase in service charges on deposit accounts which was primarily attributed to an increased number of deposit accounts from the Banco Popular and 1st Choice acquisitions as well as an increase in debit card income. Non-accrual loans of $2.757 million [$1.645 million in Q3-07] plus Accruing loans 90+ days past due of $4.083 million [$6.273 million] equals Total non-performing loans of $6.840 million [$7.918 million]. NPLs plus Repossessed assets of $158K [$121k] plus OREO of $7.538 million [$1.460 million] results in Total non-performing assets of $14.536 million [$9.499 million]. Non-performing assets to average earning assets ratio was 0.26% [0.19%] while Non-performing assets to loans and OREO was 0.45% [0.30%]. Net charge-offs were $1.805 million [$1.313 million]. Net charge-offs to average loans ratio was 0.05% [0.04%]. RF Reports $0.11 vs. $0.56 in Q3-07 PRNewswire 10-21 Regions Financial reported Q3-08 net income was $79.5 million [$0.11/share] compared with $394,164 [$0.56/share] in Q3-07. ROA was 0.22%. ROE was 4.20%. Stockholders' equity per share $28.48. Tier 1 capital ratio was 7.47%. FTE Net interest income was $930.6 million compared to $1.086 billion in Q3-07. Provision for loan losses was $417.0 million compared to $90.0 million in Q3-07. Net interest income after provision for loan losses was $504.595 million compared to $989.781 million in Q3-07. Total interest-earning assets of $119.555 billion earning $1.577 billion at an average yield of 5.25%. Total interest-bearing liabilities of $102.185 billion cost $0.647 billion at an average yield of 2.52% FTE Net interest margin was 3.10% compared to 3.74% in Q3-07. Non-interest income was $719.3 million compared to $729.1 million in Q3-07. The fall was primarily due to Securities gains which fell to $43 thousand compared to $23.994 million in Q3-07. Total net loan charge-offs rose to $416 million [1.68% of average loans] driven by accelerated problem asset disposition. Excluding impact of sales and transfers to held for sale, net loan charge-offs an annualized 1.03% of average loans. Non-accrual loans of $1.440 billion plus Foreclosed properties of $201.345 million plus Non-performing assets held for sale of $128.771 million resulted in Non-performing assets of $1.771 billion. NPAs (inc. 90+ past due)/Loans and foreclosed properties - but excluding loans held for sale - ratio was 2.12%. Non-performing assets, excluding assets held for sale, were 1.66% of period end loans and OREO. With total asets of $144.292 billion, NPAs were 2.45% of assets. From the Conference Call: RF qualitfies for between $1.17 billion and $3.51 billion of capital or preferred shares from TARP. RF to exit indirect auto lending business. But RF does not have plans to exit other lines of business. RF expects margin pressure to continue - but TARP may effect deposit pricing. RF disposed of some of its most trouble OREO's as close to 50 cents on the dollar. TRMK Reports $0.41 vs. $0.31 in Q3-07 Businesswire 10-28 Jackson, Mississippi's Trustmark Corporation reported Q3-08 net income of $23.4 million [$0.41/share] compared with $17.552 million [$0.31/share] in Q3-07. ROE was 15.16%. ROA was 1.02%. Book value was $16.55. Tier 1 leverage ratio was 8.11%. Tier 1 risk-based capital ratio was 9.86%. Total risk-based capital expanded to 11.80%. FTE Net interest income after provision was $67.165 million compared with $48.853 million in Q2-07. Declining funding costs more than offset lower yields on earning assets, resulting in a 10 bps increase in the net interest margin to 4.01%. Total noninterest income was $41.950 million compared with $48.466 million in Q3-07. Nonperforming assets increased $19.6 million to $137.7 million [1.99% of total loans + OREO]. With total assets of $9.072 billion, NPAs were 1.52% of assets. Net charge-offs were $10.2 million [0.58% of average loans] compared with $3.579 million in Q3-07. Trustmark’s nonaccrual loans increased $10.0 million primarily due to a single energy-related credit in the Houston market. This exposure is well secured, appropriately reserved, and no additional write-downs are anticipated. OREO increased $9.6 million, principally due to foreclosures in Florida. UCBH Reports -$0.03 vs. $0.29 in Q3-07 Businesswire 10-23 San Francisco's United Commercial Bank Holdings today reported a net loss of $493,000 [$0.00/share] compared with net income of $30.8 million [$0.29/share] for Q3-07. As UCBH began paying dividends on the convertible preferred stock issued in June 2008, fully diluted net income available to common per share was -$0.03/share. UCBH took a loan loss provision of $43.2 million and a $17.8 million write-down related to U.S. Government-sponsored Enterprise. UCBH charged off a significant portion of their problem residential construction credits and continued to build their reserve ratio. ROA was - 0.02%. ROE was - 0.17%. Book value per share was $10.33. Tier I risk-based capital ratio was 10.05%. Tier 1 Risk-based Capital Ratio was 10.05%. Total risk-based capital ratio was 12.51%. Net interest income, before provision for loan losses was $89.5 million compared with $83.9 million for Q3-07. This increase was due to organic balance sheet growth as well as the acquisition of UCBC in December 2007. The FTE net interest margin was 3.05% compared with 3.44% for Q3-07. Total interest-earning assets of $12.068 billion earned $175.562 million at an average yield of 5.79%. Total interest-bearing liabilities of $10.820 billion cost $86.020 million at an average yield of 3.16%. Noninterest income (loss) was $(3.8) million compared with $10.8 million for Q3-07. Net loan charge-offs were $31.1 million [1.40% of loans annualized] compared $2.3 million [0.12% annualized] in Q3-07. Nonperforming loans of $232.204 million plus OREO of $19.377 million resulted in Nonperforming assets of $251.6 million [1.93% of total assets] compared with $200.0 million [1.55%] at June 30, 2008, and $57.0 million [0.48%] at December 31, 2007. Loan delinquency ratio was 2.79%. Nonperforming loans to loans held in portfolio was 2.62%. The increase in nonperforming assets continued to reflect further deterioration in the appraised values of certain residential construction loans in distressed areas. UB Reports $0.75 vs. $0.92 in Q3-07 Businesswire 10-20 San Francisco's UnionBanCal reported Q3-08 net income of $104.8 million [$0.75/share] compared with $127.5 million [$0.92/share] in Q3-07. ROA was 0.95%. ROE was 10.84%. Book value was $33.71. Tier I ratio was 8.03%. Total risk-based capital ratio was 10.94%. Net interest income was $522 million. The net interest margin was 3.67%. Noninterest income was $198.7 million. Nonperforming assets were $304 million [0.49% of total assets] compared with $225 million [0.37%] at June 30, 2008, and $53 million [0.10%] at September 30, 2007. Net loans charged-off were $63 million [0.53% of average total loans] compared with $31 million [0.28%] in Q2-08, and $2 million [0.02%] in Q3-07. UnionBanCal Corporation will become a wholly owned indirect subsidiary of The Bank of Tokyo-Mitsubishi and each share of UNBC common stock not previously purchased in the tender offer will be converted, subject to appraisal rights, into the right to receive $73.50 per share in cash. As of October 1st, Mitsubishi UFJ Financial Group and The Bank of Tokyo-Mitsubishi own 97% of UB's stock. UMBF Reports $0.53 vs. $0.51 in Q3-07 Businesswire 10-21 Kansas City based UMB Financial Corporation reported Q3-08 earnings of $21.8 million [$0.53/share] compared with $21.5 million [$0.51/share] for Q3-07. ROA was 1.00%. ROE was 9.25%. Book value per share was $22.82. Net interest income after provision was $61.798 million comapred with $55.174 million in Q3-07. This increase was due to a 7.8% increase in average loans and a 15.7% increase in total securities. Net interest margin increased 9 bps from Q3-07 to 3.57% due to a 163 bps in the average cost of our interest-bearing liabilities, which more than offset a decrease in our average earning asset yield of 111 bps. Total earning assets $7.755 billion had an average yield of $4.96% while Total interest-bearing liabilities of $5.737 billion had an average yield of 1.88%. Noninterest income was $79.121 million compared with $76.897 million in Q3-07. Trust and securities processing income increased 9.1%. Service charges on deposits increased 11.1% due mostly to a $1.1 million increase in individual overdraft and return item charges. A $1.1 million pre-tax gain was recognized as a result of the final contingent payment received on the sale of the securities transfer product and there was a $2.8 million in pre-tax gains on the sale of securities available for sale. These increases were partially offset by a decrease in trading and investment banking income of $1.4 million [32.9%} due to market declines in UMBF's mutual fund investments. Net loan charge-offs were $2.173 million were 0.21% of average loans. Nonperforming loans increased to $6.937 million from $5.709 million at September 30, 2007. As a percentage of total loans, nonperforming loans increased to 0.16% of loans as of September 30, 2008 compared to 0.14% at September 30, 2007. Nonperforming loans are defined as nonaccrual loans and restructured loans. UMBF did not report NPAs. Nonaccrual and restructured loans $ 6.937 million plus OREO 1.557 million resulted in a calculated NPAs of $8.494 million. With Total assets of $9.337 billion, NPAs were 0.91% of assets. UMPQ Reports $0.23 vs. $0.22 in Q3-07 Business Wire 10-16 Portland's Umpqua Holdings reported Q3-08 net income of $13.6 million [$0.23/share] compared to $13.2 million [$0.22/share] for Q3-07. A gain on fair value of junior subordinated debentures of $25.3 million, based on widening spreads for new issuances, increased EPS $0.25/share; a loss on investment securities of $2.5 million on non-agency mortgage backed securities decreased EPS by $0.03/share; a loss on OREO of $2.2 million reducred EPS by $0.02/share. ROA was 0.65%. ROE was 4.34%. Book value per share was $20.76. Total risk-based capital was 11.2%. Net interest income was $73.708 million compared with $73.875 million in Q3-07 while the Provision for loan and lease losses was $35.,454 million compared with $20.420 million in Q3-07. FTE Net interest margin decreased 3 bps to 4.12%. Excluding reversals of interest on loans of 4 bps, the NIM would have increased 1 basis point. Total yield on earning assets was 6.11%. The cost of interest bearing deposits was 2.32% and the Total cost of interest bearing liabilities was 2.50%. Total non-interest income was $34.471 million compared with $18.543 million in Q3-07, with the $15.928 million difference explained by the $25.311 million security gain in debentures. Total net charge-offs were $15.2 million, or 0.98% of average loans. Loans past due greater than 90 days and still accruing of $6.4 million plus $111.9 million of non-accrual loans plus OREO of $9.8 million resulted in Non-performing assets of $128.1 million [1.54% of total assets]. Approximately 71% of NPAs are from the residential development loan segment of the portfolio. Non-performing loans ended the quarter at 1.92% of total loans. Non-accrual loans have already been written-down to their estimated net realizable value, based on disposition value, and are expected to be resolved over the coming quarters with no additional material loss. WABC Reports $0.00 vs. $0.74 in Q3-07 Business Wire 10-15 San Rafael California's Westamerica Bancorporation reported Q3-08 net income of $.044 million compared with $22.022 million [$0.74/share] in Q3-07. Results for Q3-08 include a loss of $24 million [$0.81/share] from FHLMC and FNMA preferred stock and a $1.0 million [$.03/share] in its tax provision primarily due to filing its 2007 tax return. ROA was 0.00%. ROE was 0.0%. Book value was $13.81. Tier I Capital /Total Assets ratio was 6.80%. Tier I Capital / Risk-Adjusted Assets ratio was 9.97%. Total Capital / Risk-Adjusted Assets ratio was 11.25%. FTE Net interest income was $48.693 million compared to $45.563 million in Q3-07. The FTE Net Interest Margin was 5.19%. FTE Total Earning Assets of $3.745 billion earned $56.131 million at an average yield of 5.98%. Total Interest-Bearing Liabilities of $2.487 billion cost $7.438 million at an average yield of 1.19% while the total Cost of Funds was 0.79%. [Why were the costs so low? Total Interest-Bearing Deposits were $1.981 billion and had an average yield of only 1.00%.] Total Noninterest Income was a loss of $27.499 million [due to $41.206 million in security losses] compared with a gain of $14.644 million in Q3-07. WABC reported "Net Loan Losses" [which I am guessing is the same as charge-offs] of $1.467 million or 0.24% of loans. Total Nonperforming Loans of $12.568 million plus OREO of $.814 million resulted in Non-performing assets of $13.382 million [0.33% of total assets] compared with $13 million [0.31%] on June 30, 2008 and $5.691 million [0.12%] on September 30, 2007. WTNY Reports $0.11 vs. $0.71 in Q3-07 Globe Newswire 10-16 New Orleans' Whitney Holding Corporation reported Q3-08 income of $7.0 million [$0.11/share] compared with $12.9 million [$0.20/share] for Q2-08 and $48.8 million [$0.71/share] for Q3-07. Q3-08 results include casualty losses and expenses from Hurricanes Gustav and Ike totaling $2.1 million ($1.3 million after-tax, or $.02/share) Q3-07 include a gain of $31.3 million ($19.9 million after-tax, or $.29/share) for insurance claims arising from the hurricanes of 2005. ROA .26%. ROE was 2.35%. Book value per share was $18.49. Tangible common equity ratio was 7.89%. The regulatory leverage ratio was 8.14%. FTE Net interest income was $112.601 million compared with $118.245 million in Q3-07. Provision for credit losses was $40 million compared with $9 million in Q3-07. Net interest income after provision for credit losses was $71.435 million compared with $107.718 million in Q3-07. The Net interest margin was 4.53%. Total interest-earning assets had an average yield of 5.62% while Total interest-bearing deposits had an average yield of 1.41%, Total interest-bearing liabilities had an average yield of 1.58% and the total average cost of funds was 1.09%. [Why were cost of funds so low? Total deposits were $8.054 billion - of which Noninterest-bearing demand deposits were $2.810 billion - while Total liabilities were $9.804 billion.] Noninterest income was $25.472 million compared with $54.455 million in Q3-07 [which included the $31.3 million insurance claim]. Net loan charge-offs were $24.5 million or 1.22% of average loans. The total of loans criticized through WTNY's credit risk-rating process was $586 million at September 30, 2008, which represented 7% of total loans.Total nonperforming loans 235.136 million plus OREO of $19.597 million resulted in Total nonperforming assets of $254.733 million. Nonperforming assets as a percentage of loans plus foreclosed assets and surplus property was 3.15%. With total assets of $10.987 billion, NPAs were 2.31% of assets. ZION Reports $0.31 vs. $1.22 in Q3-07 PRNewswire 10-16 Zions Bancorporation reported Q3-08 net earnings applicable to common shareholders of $33.4 million [$0.31/share] compared to $132.0 million [$1.22/share] for Q3-07. ZION recorded impairment losses on securities of $28.0 million pretax [$0.16/share]. ROA was 0.28% compared to 1.10% in Q3-07. ROE was 2.59% compared to 10.50% for Q3-07. Book value per share was $45.78. The tangible equity ratio was 6.60%. Net interest income increased $7.3 million to $492.0 million compared to $484.7 million for Q2-08 and $476.6 million for Q3-07. The FTE net interest margin was 4.13% compared to 4.18% for Q2-08 and 4.44% for Q3-07. The decreased NIM was driven by higher average nonperforming assets, lower yields on loans, and increased money market rates. The effect of commercial paper purchased from Lockhart on NIM was a reduction of approximately 5 bps and 9 bps for Q2-08. Total interest-earning assets of $47.984 billion earning $741 million at an average yield of 6.15% [compared to 6.28% in Q3-07]. Total interest-bearing liabilities of $39.079 billion cost $243.649 million at an average yield of 2.48% [compared to 2.50% in Q3-07]. Noninterest income was $89.6 million compared to $72.4 million for Q2-08 and $145.8 million for Q3-07. The amount for Q3-08 includes impairment losses on securities of $28.0 million compared to $38.8 million for Q2-08. Fair value and nonhedge derivative loss was $26.2 million during the quarter, primarily because of decreases in the fair value of nonhedge derivatives due to decreasing spreads between LIBOR and prime rates. Net equity securities gains for the quarter were $13.0 million, an increase of $21.1 million from Q2 primarily because of $5.3 million of net gains on venture capital investments compared to losses of $8.2 million during Q2, and $7.6 million of net realized gains on certain of ZION's noninterest-bearing equity investments. Net of related minority interest of $3.8 million, income taxes and other expenses, the venture capital investments contributed approximately $0.8 million to net income for the quarter [$0.01/share] compared to decreasing net income for Q2-08 by $0.02/share. Nonperforming assets were $924.4 million [2.20% of net loans and leases and OREO] compared to $697.4 million [1.66%] at June 30, 2008 and $196.6 million [0.52%] at September 30, 2007. NPAs consisted of Nonaccrual loans of $765 milion, Restructured loans of $2 million and OREO of $157 million.] The NPA increase is being driven primarily by deterioration in residential real estate acquisition, development and construction exposures in the Southwest, and by continued weakening in Utah residential construction and commercial and industrial portfolios. [Accruing loans past due 90 days or more was $97.831 million. With total assets of $53.974 billion, NPAs were a self-calculated 1.71% of assets.] Net loan and lease charge-offs were $95.3 million [0.91% annualized of average loans] compared with $67.8 million [0.67%] for Q2-08 and $18.1 million [0.19%] for Q3-07. The increase in charge-offs largely was driven by declining collateral values on residential acquisition, development, and construction loans in the Southwest and in Utah. From the Conference Call: On non-hedeged derivative loss - if spread stays the same [very narrow], ZION's loss in Q4 will be $3 million. For every 10 bps that 3 month LIBOR comes down in relation to prime, ZION would record a gain of $7.5 milion. If spread returns to normal - ZION would have a one time gain of $30-$40 million. On the potential for growing problem CNI loans with some problems: restruants and other business operators that are dependant on customer descreationary income - and any business that has some relation to home building. Commercial retail development could be the other shoe to drop. Something has happened [we hit an inflection point] after Labor Day. Ratings & Dividend Changes - October On 11-05 Bernstein Research downgraded U.S mid-cap banks Synovus and Marshall & Ilsley Corp to "market perform" from "outperform" and raised its rating on Fifth Third, Regions and Comerica to "outperform" from "market perform", all on valuation. The brokerage cut its ratings of Synovus and Marshall & Ilsley "on both valuations approaching our price targets and prolonged weakness in residential construction portfolios, where losses are likely to exceed our prior forecast," it said in a note to clients. Bernstein said it raised Fifth Third, Regions Financial and Comerica as they looked undervalued compared with expected 2010 earnings. "Looking out 12 months, we believe the market will focus on a sequentially better 2010 and more normal tangible returns of 16 to 18 percent," it said. Bernstein said it saw a peak in charge-offs in the third quarter of 2009 at the earliest. On 10-08 Stifel Nicolaus Initiated BOH, UMPQ and WABC at Hold. On 10-15 Sterne Agee Downgraded WTNY from Hold to Sell and DA Davidson Upgraded UCBH from Neutral to Buy. On 10-01 BXS declared a dividend of $0.22/share payable January 2, 2009 to shareholders of record at the close of business on December 15, 2008. On 10-16 RF declared a dividend of $0.10/share payable January 2, 2009, to stockholders of record as of December 17, 2008. On 10-22 FHN declared a quarterly dividend, payable in shares on 1-01-09 at the rate of 1.837 new dividend shares will be distributed for every 100 shares of stock - or the equivilent of $0.20/share given FHN's volume weighted average stock price on Oct. 16 of $10.8876 per share. On 10-23 CYM declared a dividend of $0.48/share payable on November 19, 2008 to stockholders of record on November 5, 2008. On 10-23 WABC declared a dividend of $0.35/share to shareholders of record at the close of business on November 3, 2008 payable November 14, 2008. On 10-27 BOH declared an increased dividend of $0.45/share payable on December 12, 2008 to shareholders of record at the close of business on November 28, 2008. On 10-27 EWBC declared a dividend of $.10/share payable on or about November 24, 2008 to shareholders of record as of November 10, 2008. On 10-28 TRMK declared a dividend of $0.23/share payable December 15, 2008, to shareholders of record on December 1, 2008. Ratings & Dividend Changes - September On 9-24 GBCI declared a dividend of $.13/share payable on October 16, 2008 to owners of record on October 7, 2008. On 9-02 Fox Pitt Upgraded ZION from In Line to Outperform. On 9-08 Friedman Billings Upgraded EWBC from Market Perform to Outperform. On 9-08 Friedman Billings Upgraded RF from Underperform to Market Perform. On 9-08 Friedman Billings Upgraded UCBH from Market Perform to Outperform. On 9-08 Friedman Billings Upgraded ZION from Market Perform to Outperform. On 9-09 B. Riley & Co Downgraded PRSP from Buy to Neutral. On 9-09 B. Riley & Co Downgraded CATY from Buy to Neutral. On 9-09 Sterne Agee Downgraded CNB from Hold to Sell. On 9-09 Sterne Agee Downgraded ZION from Hold to Sell. On 9-10 Keefe Bruyette Upgraded RF from Market Perform to Outperform. On 9-15 Sterne Agee Downgraded WABC from Hold to Sell. On 9-15 Sun Trust Rbsn Humphrey Downgraded WTNY from Neutral to Reduce. On 9-17 Stifel Nicolaus Downgraded ZION from Buy to Hold. On 9-19 RBC Capital Markets Upgraded PCBC from Underperform to Sector Perform. On 9-22 Stifel Nicolaus Downgraded GBCI from Hold to Sell. On 9-22 BMO Capital Downgraded PRSP from Outperform to Market Perform. On 9-24 Friedman Billings Downgraded CYN and PACW from Market Perform to Underperform and Keefe Bruyette Downgraded WTNY from Outperform to Market Perform. On 9-25 Keefe Bruyette Downgraded PRSP from Outperform to Market Perform. On 9-29 Noble Financial Initiated CYN at Buy; Initiated PCBC at Buy; Initiated UCBH at Buy; Initiated ZION at Buy; Initiated CATY at Hold; Initiated EWBC at Hold; Initiated PACW at Hold; and Initiated UMPQW at Hold. On 9-23 Citi Investment Research analyst Greg Ketron cut his rating on Regions Financial to "Sell" from "Hold" and also cut his 2008 and 2009 earnings estimates because of an expected increase in loan-loss provisions and credit costs. "Government intervention in the form of the short-selling ban and the proposed troubled asset relief plan has led bank stocks being overvalued versus fundamentals, including Regions Financial," Ketron wrote in a research note. Ketron said plans by the government to buy troubled assets from banks would likely set a floor for ultimate losses at banks, but would not relieve near-term credit pressures at Regions Financial and other banks. And, Ketron said Regions Financial's current operations do not warrant the recent rise in share prices. Regions Financial is likely to face rising losses from its residential and multifamily lending portfolios, while net interest margin is likely to narrow. Ketron cut his 2008 earnings estimate to $1.32/share from $1.40/share. He reduced his 2009 estimate to $1.25/share from $1.45/share. Analysts polled by Thomson Reuters forecast earnings of $1.33/share for 2008 and $1.45/share for 2009. Home Page Factoids Previous Update |