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Yields posted below are based on the Q1-09 dividend - and CMA and HBAN have reductions in their Q2-09 div ASBC Reports $0.11 for Q4-08 vs. $0.51 in Q4-07 Business Wire 1-22 Green Bay's Associated Banc-Corp reported Q4-08 Net income available to common shareholders of $14 million [$0.11/share] compared to $65 million [$0.51/share] for Q4-07. Other-than-temporary valuation losses on investments were $35 million [$0.18/share] while in combination, a $7 million valuation reserve expense related to the fair value of mortgage servicing rights, a $3 million loss on an alleged customer fraud, and a $3 million write down on a foreclosed property reduced EPS by $0.07. A single bond security is responsible for $31 million of the fourth quarter other-than-temporary marks, and has a remaining carrying value of $33 million at Dec. 31. The bond is comprised of large fixed-rate, 30-year amortizing mortgages with reasonably strong loan-to-value ratios and weighted average credit scores. ROA was 0.830 and ROE was 2.58%. Book value was $18.54. Stockholders' equity to assets ratio was 11.89%. Tangible common equity / tangible assets ratio was 6.05%. Tangible equity to tangible assets ratio was 8.23%. The net interest income was $191.782 million compared with $164.219 million in Q4-07 while the Provision for loan losses was $65.044 million compared with $15.501 million in Q4-07 resulting in a Net interest income after provision of $126.738 million compared with $148.718 million in Q4-07. The net interest margin improved 40 bps to 3.88% compared with 3.62% in Q4-07. Total earning assets of $20.436 billion earned $285.771 million at an average yield of 5.57% [compared with 6.88% in Q4-07]. Total interest-bearing liabilities of $17.363 billion cost $87.087 million at an avereage yield of 2.00% [compared with 3.82% in Q4-07]. Core fee-based revenues were $67 million, up $3 million or 5% over Q4-07. But Investment securities losses of $35.298 million compared with a loss of $0.815 million in Q4-07, a fall in Trust service fees to $8.248 million from $10.723 million in Q4-07, and a fall in Mortgage banking revenue to a loss of $1.227 million from a gain of $0.498 million in Q4-07 caused the total noninterest income to fall to $41.074 million from $85.673 million in Q4-07. Net charge offs were $45.885 million compared to $15.491 million in Q4-07. Nonaccrual loans of $326.857 million plus Loans 90 or more days past due and still accruing of $13.811 million sum to Total nonperforming loans of $340.668 million, compared to $163 million [1.05%] at year-end 2007. NPLs plus OREO of $48.710 million [$26.489 million in Q4-07] resulted in Total nonperforming assets of $389.378 million [2.38% of total loans plus OREO or 1.61% of assets] compared with $189.135 million [1.22% and 0.88%] in Q4-07. BBT Reports $0.51 for Q4-08 vs. $0.75 in Q4-07 PRNewswire 1-22 Winston-Salem's BB&T Corporation reported Q4-08 net income available to common shareholders of $284 million [$.51/share] compared with $411 million [$.75/share] during Q4-07. [EPS for 2008 was $2.71] GAAP net income based ROA was 0.86% and ROE was 8.47%. Book value was $23.16. BB&T's leverage ratio was 9.7%, up from 7.6% last quarter. BB&T's Tier 1 risk-based capital ratio was 12.0% [up from 9.4% at the end of Q3-08] while the total risk-based capital ratio was 17.1% [up from 14.4% at the end of Q3-08]. These increases reflect the $3.1 billion of capital invested by the U.S. Treasury in Q4-08. FTE net interest income totaled $1.065 billion compared to $0.991 billion in Q4-07. The net interest margin was 3.47%. Total earning assets had an average yield of 5.81% while Total interest-bearing liabilities had an average yield of 2.45%. Noninterest income was $807 million compared to $718 million in Q4-07. Insurance operations increased $26 million [11.8%], and investment banking and brokerage operations increased $11 million [12.9%]. Revenues from mortgage banking operations totaled $76 million, an increase of 181.5% compared to Q4-07. This increase reflects the adoption of fair value accounting standards and the net change in the mortgage servicing rights valuation. Fair value accounting increased mortgage banking income by $11 million, but was neutral to earnings because it also resulted in an $11 million increase in personnel expense during the quarter. Total nonaccrual loans and leases were $1.413 billion [compared to $502 million in Q4-07], OREO was $538 million [$143 million in Q4-07] and Other foreclosed property was $79 million [$51 million in Q4-07] resulting in Nonperforming assets of $2.030 billion [$696 million in Q4-07]. Nonperforming assets, as a percentage of total assets, increased to 1.34% at Dec. 31, 2008, compared to 1.20% at Sept. 30, 2008. Total loans 90 days or more past due and still accruing were at $431 million and Total loans 30 - 89 days past due were $2.047 billion [2.07% of total loans] compared with $1.354 billion [1.48%] in Q4-07. Net charge-offs were $314 million compared with $111 million in Q4-07. Annualized net charge-offs were 1.29% of average loans and leases for the fourth quarter of 2008, up from 1.00% in the third quarter. CHCO Reports $0.26 for Q4-08 vs. $0.78 in Q4-07 PRNewswire 1-27 Charleston, W.Virginia's City Holding Company reported Q4-08 net income of $4.249 million [$0.26/share] compared with $12.758 million [$.78/share] in Q4-07. [2008 EPS was $1.74/share] ROA was 0.68%. ROE was 7.32%. Book Value per share was $17.62. Tier I ratio was 11.91%. Total Risk Based Capital Ratio was 13.09%. City remains strong, operating in some of the most stable markets in the U.S. For example, West Virginia's unemployment rate in November 2008 was 4.6% as compared to the U.S. unemployment rate of 6.8% for the same period. The rate of foreclosures on residential mortgages in West Virginia has been reported to be one of the lowest in the U.S. and home prices are generally believed to have remained relatively stable through the last 18 months as prices in many markets have fallen precipitously. FTE Net Interest Income was $26.280 million compared with $24.264 million in Q4-07. The Net Interest Margin was 4.73% compared with 4.32% in Q4-07. Total interest-earning assets of $2.209 billion earned $36.863 million at an average yeild of 6.64%. Total interest-bearing liabilities of $1.872 billion cost $10.583 million at an average yield of 2.25%. Total Non-Interest Income was $3.181 million compared with $14.281 million in Q4-07, with the decrease due to an Investment securities loss of $10.800 million compared with a gain of $0.001 million in Q4-07. Total non-performing loans of $25.857 million plus OREO of $3.869 million resulted in Total non-performing assets of $29.726 million. Non-performing assets as a percent of loans and OREO was 1.64%. With Total assets [average balance] of $2.514 billion, NPAs were 1.19% of assets. Approximately 48% of CHCO's nonperforming loans [$12 million] were associated with a $17 million portfolio of loans to builders of speculative homes at the Greenbrier Resort in White Sulphur Springs, West Virginia. The Greenbrier Resort has a long history and tradition as a top resort destination. Slightly more than 25% of the CHCO's NPAs are associated with real estate in what is known as the "Eastern Panhandle" of West Virginia - the counties of Jefferson, Berkeley, and Morgan. These three counties are all considered distant suburbs of the Washington D.C. Net charge-offs (annualized) were $2 million of 0.44% of average loans outstanding. CMA Reports $0.02 for Q4-08 vs. $0.79 in Q4-07 PRNewswire 1-22 Dallas' [and prior to that Detroit based] Comerica reported Q4-08 net income applicable to common stock of $3 million, [$0.02/share] compared to $28 million [$0.19/share] for Q3-08 and $119 million [$0.79/share] for Q4-07. ROE was 0.19%. ROA was 0.12%. Book value was $33.31. The Tier 1 capital ratio was 10.67% while the Tangible common equity ratio was 7.21%. Net interest income was $431 million compared to $489 million in Q4-07 while the Provision for loan losses was $192 million compared to $108 million in Q4-07. The Net interest margin was 2.82%, which decreased from 3.11% in Q3-08, and reflected the negative impact of three Federal Reserve rate cuts totaling 175 basis points in a challenging deposit pricing environment, partially offset by improved loan pricing. Noninterest income was $174 million compared to $230 million in Q4-07. Most of the decrease was the result of a fall in the miscellaneous 'other income' section. Decreases in deferred compensation asset returns of $12 million and net income (loss) from principal investing and warrants of $6 million also contributed to the decline in noninterest income. Compensation deferred by Comerica officers is invested in stocks and bonds to reflect the investment selections of the officers. Income (loss) earned on these assets is reported in noninterest income and the offsetting increase (decrease) in the liability is reported in salaries expense. Net loan charge-offs were $133 million [1.04% of average loans] compared to $63 million [0.50%] in Q4-07. Nonperforming assets were $982 million [1.94% of loans + OREO] compared to $423 million [0.83%] in Q4-07. With total assets of $67.548 billion, NPAs were 1.45% of assets. CRBC Reports - $1.56 for Q4-08 vs. $0.37 in Q4-07 PRNewswire 1-22 Flint, Michigan's Citizens Republic Bancorp reported for Q4-08 a net loss of $195.6 million [- $1.56/share] compared with a net loss of $7.2 million [- $0.20/share] for Q3-08 and net income of $28.0 million [$0.37/share] for Q4-07. ROA was - 5.94%. ROE was - 49.86%. Book value was $12.71. Tier 1 ratio was 12.26%. Total Capital ratio was 14.55%. Tier 1 Leverage was 9.65%. Net interest income was $85.7 million compared with $87.3 million for Q3-08 and $92.2 million for Q4-07. The decrease from Q3-08 was primarily the result of lower NIM, partially offset by a $19.2 million increase in average earning assets. Net interest margin was 3.03% compared with 3.09% for Q3-08 and 3.26% for Q4-07. The decrease in NIM from Q3-08 was primarily the result of deposit spread compression due to price competition in Citizens' markets and an increase in loan balances transferring to nonperforming status, partially offset by expanding commercial and consumer loan spreads. The decrease in NIM from Q4-07 was primarily the result of deposit price competition, the transfer of loans to nonperforming status, and an increase in funding costs related to extending short-term borrowings, partially offset by expanding commercial and consumer loan spreads and retail time deposits repricing to a lower rate. Total earning assets of $11.877 billion had an average yield of 5.78%. Total interest-bearing liabilities of $10.262 billion had an average yield of 3.18% [ due to CRBC having Time deposits of $4.560 billion at an average yield of 3.78% and Long-term debt of $2.324 billion at an average yield of 4.91%]. Noninterest income was $15.8 million, a decrease of $12.3 million from Q3-08 and a decrease of $13.5 million from Q4-07. The decrease from Q3-08 was primarily the result of lower other income ($5.2 million), higher net loss on loans held for sale ($4.6 million), lower mortgage and other loan income ($1.5 million), as well as minor decreases in several other categories. Total Nonperforming Portfolio Loans were $306.0 million [3.36% of average loans] plus Nonperforming Held for Sale of $75.2 million plus Other Repossessed Assets Acquired of $58.0 million resulted in Total Nonperforming Assets of $439.2 million. Nonperforming assets at December 31, 2008 represented 4.79% of total loans + OREO. With Total assets of $13.074 billion, NPAs were 3.36% of assets. Total Net Charge-offs were $17.4 million [0.74% of the loan portfolio]. FMER Reports $0.36 for Q4-08 vs. $0.39 in Q4-07 PRNewswire 1-27 Akron, Ohio's FirstMerit Corporation reported Q4-08 net income of $29.1 million [$0.36/share] compared with $31.5 million [$0.39/share] for Q4-07. [2008 EPS was $1.48] ROA was 1.08%. ROE was 12.47%. Book value was $11.58. Tier 1 capital ratio was an adjusted 11.49% while the total capital ratio was an adjusted 13.09% - with the adjustment taking into account FMER's participation in the Troubled Assets Relief Program, a participation that was not completed until Jan 9th of 2009. FTE Net interest income was $94.9 million compared with $92.7 million in Q3-08 and $87.6 million in Q4-07. The increases NII resulted from expansion in the net interest margin due to decreased liability costs. Net interest margin was 3.82%. Total earning assets of $9.876 billion earned $136.998 million at an average yield of 5.52%. Total interest bearing liabilities of $7.999 billion cost $42.143 million at an average yield of 2.10%. Total other income was $52.795 million compared with $49.993 million, with the gain due to Gain on Visa of $5.768 million while FMER had declining income on service charges, trust income, ATM fees, credit card fees and bank owned life insurance. Net charge-offs totaled $15.236 million [0.82% of average loans] compared with $11.8 million [0.64%] in Q3-08 and $8.9 million [0.51%] in Q4-07. Total nonperforming loans of $52.202 million plus OROE of $5.324 million resulted in total Nonperforming assets of $57.526 million [0.77% of period-end loans plus OREO]. With Total assets of $11.100 billion, NPAs were 0.51% of assets. FITB Reports - $3.82 for Q4-08 vs. + $0.03 in Q4-07 PRNewswire 1-22 Cincinnati's Fifth Third Bancorp reported a Q4-08 net loss of $2.2 billion [$3.82/share] compared with earnings of $16 million [$0.03/share] in Q4-07. Q4-08 results included a non-cash charge of $965 million pre-tax [$1.64/share after-tax] to record the impairment of goodwill. The results of the goodwill impairment testing showed that the estimated fair values of certain of the FITB's reporting units were less than their book values, resulting in this charge. During Q4-08 FITB sold or transferred to held-for-sale loans with contractual balances of $1.6 billion. Approximately 90% of these loans were commercial real estate secured loans in Florida and Michigan. Net charge-offs of $680 million were recorded on these loans as they were written down to bids received or collateral liquidation values. Overall, net charge-offs on loans either sold or transferred to held-for-sale during Q4-08 totaled $800 million, which reflected a reduction in the value of loans sold or transferred to approximately 33 cents of their contractual balances. Q4-08 also included $40 million pre-tax [$0.05/share after-tax] OTTI charges on securities, and a non-cash estimated charge of $34 million pre-tax [$0.06/share after-tax] to lower the current cash surrender value of one of our BOLI policies. ROA was -7.16%. ROE was -94.6%. Book value was $13.57. Tier I capital ratio was 10.59%. Total risk-based capital ratio was 14.79%. The Tier I leverage ratio was 10.27%. FTE Net interest income was $897 million compared with $785 million in Q4-07 while the Provision for loan and lease losses was $2.356 billion compared with $284 million in Q3-07. The Net interest margin was 3.46%. Yield on interest-earning assets was 5.44% compared with 6.52% in Q4-07. Yield on interest-bearing liabilities was 2.28% compared with 3.78% in Q3-07. Total noninterest income was $642 million compared with $509 million in Q4-07. Electronic payment processing revenue was $230 million. Service charges on deposits were $162 million. Net charge-offs totaled $1.6 billion [7.5% of average loans excluding loans held for sale]. Total nonaccrual loans and leases $1.696 billion plus Restructured loans and leases of $574 million plus Repossessed personal property of $24 million plus OREO of $206 million plus Nonaccrual loans held for sale of $473 million resulted in Total nonperforming assets of $2.973 billion. Nonperforming assets as a percent of portfolio loans, leases and other assets, including other real estate owned was 2.96%. With total assets of $119.746 billion, NPAs was 2.48% of asets. FMBI Reports - $0.57 for Q4-08 vs. + $0.11 in Q4-07 Market Wire 1-28 Itasca, Illinois' First Midwest Bancorp reported for Q4-08 a net loss of $26.9 million [- $0.57/share] compared with a gain of $5.4 million [$0.11/share] for Q4-07. [2008 EPS was $1.00/share] ROA was -1.31%. ROE was -13.89%. Book value was $14.72. Tier 1 Risk Based Capital ratio was 11.60%. Total Risk Based Capital ratio was 14.36%. Tier 1 Leverage Capital ratio was 9.41%. FMBI took non-cash impairment charges of $34.5 million. Of such charges, $24.8 million related to three trust-preferred CDOs with an aggregate cost of $38.9 million. The remaining $9.7 million of non-cash impairment charges related to two whole loan mortgage backed securities with a combined par value of $16.6 million and a single Sallie Mae debt issuance with a par value of $10.0 million. These non-cash charges largely reflect the illiquidity and market risks existent generally. The FTE net interest margin was 3.71% and 3.61% for full year as compared to 3.63% for Q3-08, 3.53% for Q4-07, and 3.58% for full year 2007. Over this period, the yield on FMBI' average earning assets declined 102 bps while its cost of funds declined 126 bps. Fee-based revenues were $23.0 million. Nonaccrual loans at December 31, 2008 were $127.8 million, representing 2.38% of total loans, with residential construction and development customer relationships accounting for $97.1 million of the total. Of such $97.1 million, undeveloped land and land with improvements totaled $28.4 million and $38.9 million, respectively. The increase in nonaccrual loans from September 30, 2008 of $74.5 million stems primarily from the impact of slowing market conditions on five residential developers. As of December 31, 2008, loans 90 days past due and still accruing totaled $37.0 million, unchanged from September 30, 2008 and up $15.9 million from December 31, 2007. All such loans are believed to be adequately collateralized and in the process of collection. Foreclosed real estate was $24.4 million as of December 31, 2008 as compared to $23.7 million as of September 30, 2008 and $6.1 million as of December 31, 2007, with 60% of this representing collateral underlying foreclosed residential developments. Restructured loans totaled $3.3 million at December 31, 2008, up $1.0 million from September 30, 2008 and $3.0 million from December 31, 2007. With Total assets of $8.528 billion and calculated NPAs of [127.768 + 24.368 + 3.260 for NALs, OREO and restructured loans] of $155.396 million, NPAs were 1.82% of assets. Net charge-offs totaled $18.3 million [1.38% of loans] as compared to $9.3 million [0.71%] in Q3-08. FULT Reports - $0.58 for Q4-08 vs. + $0.22 in Q4-07 Market Wire 1-20 Lancaster, PA's Fulton Financial Corporation reported a Q3-07 net loss of $102.3 million [- $.58/share compared to net income of $38.2 million [$0.22/share] for Q4-07. With Total assets of $16.185 billion, ROA was -2.51%. With Shareholders' equity of $1.859 billion, ROE was -24.89%. Book value was $8.47. Net interest income was $132.341 million compared with $123.651 million for Q4-07 while the Provision for loan losses was $65 million compared with $6.800 million for Q4-07. The net interest margin was 3.64%, 3.56% for Q4-07 and 3.74% for Q3-08. Total Interest-earning Assets of $14.805 billion earned $213.171 million at an average yield of 5.70%. Total Interest-bearing Liabilities of $12.667 billion cost $76.732 million at an average yield of 2.41%. Total Other Income was $10.411 million compared with $35.211 million in Q4-07. The decrease was mainly due to Investment securities losses of $28.339 million in Q4-08 compared with losses of $0.537 million in Q4-07. Non-accrual loans of $161.962 million plus Loans 90 days past due and accruing of $35.177 million plus OREO of $21.855 million resulted in Non-performing assets of $218.994 million [1.35% of total assets] compared to $120.9 million [0.76% at December 31, 2007 and $186.4 million [1.15%] at September 30, 2008. Non-performing assets to total loans and OREO was 1.82%. Non-accrual loans to total loans was 1.34%. Annualized net charge-offs were 0.89% of average total loans, compared to 0.15% for the quarter ended December 31, 2007 and 0.38% for the quarter ended September 30, 2008. HBAN Reports - $1.20 for Q4-08 vs. - $0.65 in Q4-07 PRNewswire 1-22 Columbus, Ohio's Huntington Bancshares reported Q4-08 net loss of $417.3 million [$1.20/share] compared a net loss of $239.3 million [$0.65/share] in Q4-07. [2008 net loss of $113.8 million or $0.44/share] ROA was -3.04%. ROE was -23.7%. Book value per share was $14.53. Tier 1 ratio was 10.76% and Total risk-based capital ratio was 13.96%. FTE net interest income decreased to $376.365 million from $388.636 million in Q3-08 and $382.933 million in Q4-07. This primarily reflected an 11 bps decline in the net interest margin to 3.18% from 3.29% in Q3-08. The decline in the net interest margin was almost entirely due to interest accrual reversals resulting from loans being placed on nonaccrual status, with 8 bps associated with the Franklin relationship actions taken in Q4-08. While average total loans and leases increased during the quarter, this growth was more than offset by a decline in other earning assets, most notably investment securities and federal funds sold. Non-interest income fell to $67.099 million from $167.857 million in Q3-08 and $170.557 million in Q4-07 due to $127.1 million of securities losses, related to other-than- temporary impairment on certain investment securities. Total net charge-offs were $560.6 million, or an annualized 5.41% of average total loans and leases. This was up significantly from total net charge-offs in Q3-08 of $83.8 million [0.82%] and $377.9 million [3.77%] in Q4-07. Nonaccrual loans were $1.502 billion [3.66% of total loans and leases] compared with $585.9 million [1.42%] at September 30, 2008, and $319.8 million [0.80%] at the end of the year-ago period. Non-performing assets were $1.637 billion compared with $675.3 million at September 30, 2008, and $472.9 million at the end of the year-ago period. With Average total assets of $54.921 billion, NPAs were 2.98% of assets. MBFI Reports - $0.74 for Q4-08 vs. $0.22 in Q4-07 Business Wire 1-30 Chicago's MB Financial reported for Q4-08 a net loss from continuing operations of $25.6 million [- $0.74/share] compared to net income of $7.9 million [$0.22/share] for Q4-07. ROA was - 1.15%. ROE was - 11.38%. Book value was $25.17. The total risk-based capital ratio was 14.07%, Tier 1 capital to risk-weighted assets ratio was 12.06% and Tier 1 capital to average asset ratio was 9.85%. Net interest income was $54.746 million while the Provision for loan losses was $72.581 million resulting in Net interest income (loss) after provision of - $17.835 million. The Net interest margin was 2.86% [while the FTE NIM was 3.00%]. Total interest earning assets of $7.604 billion earned $104.141 million at an average yield of 5.45%. Total interest bearing liabilities of $6.607 billion cost $46.789 million at an average yield of 2.82%. [Why so high? $2.591 billion of MBFI's deposits came from CDs at an average yield of 3.30% and were $21.460 million of liability costs.] Non-interest income was $21.937 million compared with $22.981 million in Q4-07. Deposit service fees were $7.479 million [compared with $6.635 million in Q4-07]; Merchant card processing were $4.326 million [$4.293 million in Q4-07]; Lease financing income was $4.604 million [$4.155 million in Q4-07]; Brokerage fees were $0.968 million [$1.846 million in Q4-07]; and Trust & asset management fees were $2.784 million [$2.101 million in Q4-07]. Total non-performing loans of $145.936 million plus OREO of $4.366 million plus Repossessed vehicles of $0.356 million resulted in Total non-performing assets of $150.658 million. Non-performing loans to total loans and non-performing assets to total assets increased to 2.34% and 1.71%, respectively, as of December 31, 2008, compared to 1.92% and 1.45%, respectively, as of September 30, 2008. Net charge-offs of $17.443 million was 1.13% of average loans. MI Reports - $1.55 for Q4-08 vs. - $0.09 in Q4-07 PRNewswire 1-15 Milwaukee's Marshall & Ilsley reported a Q4-08 net loss of $403.9 million [- $1.55/share] as compared to a loss from continuing operations of $24.5 million [- $0.09/share] in Q4-07. With Total Assets of $63.824 billion, ROA was a calculated -2.53%. With Shareholders' Equity of $7.748 billion, ROE was a calculated -20.85%. Book Value was $23.19. FTE net interest income was $469.0 million - up $43.1 million or 10% compared to Q4-07. The net interest margin was 3.18%, up 12 bps on a linked quarter basis, and up 5 bps from Q4-07. Avg. Interest Earning Assets earned 5.38 % while Avg. Interest Bearing Liabilities cost 2.61 %. Non-interest income was $166.1 million, a decrease of $37.6 million or 18 percent from Q4-07. Non-performing loans and leases of $1.527 billion were 3.62% of total loans and leases at December 31, 2008, compared to $686.9 million or 2.00% at December 31, 2007. Renegotiated loans were $270.3 million - up $180.8 million from Q3-08. Nonaccrual Loans & Leases / Period-End Loans & Leases were 3.05% of loans. Net Charge-Offs were $679.8 million [5.38% of average loans and leases] compared with $191.6 million [1.67%] in Q4-07. MTB Reports $0.92 for Q4-08 vs. $0.60 in Q4-07 PRNewswire 1-21 Buffalo's M&T Bank Corporation reported Q4-08 earnings of $102.241 million [$0.92/share] compared with $64.930 million [$.60/share] in Q4-07. [GAAP-basis EPS was $5.01] ROA was 0.63% while ROE was 6.41%. With total shares of 110.444 million and shareholders equtiy of $6.784 billion, the calculated Book value was $61.67. FTE net interest income was $491.042 million compared with $475.836 million in Q4-07. The Yield on average interest earning assets was 5.35% [6.65% in Q4-07] while the Cost of interest-bearing liabilities was 2.32% [3.75% in Q4-07] resulting in a Net interest spread of 3.03% [2.90% in Q4-07]. The Contribution of interest-free funds added 34 bps to the margin spread [55 bps in Q4-07] resulting in a Net interest margin of 3.37% [3.60% in Q4-07]. Total other income was $241.417 million compared with $160.490 million in Q4-07. Mortgage banking revenues increased to $39.721 million from $30.831 million, and Brokerage services income increased to $15.284 million from $12.689 million, but the big changes were not due to operations. Loss on bank investment securities were $23.504 million compared with $127.281 million in Q4-07 while Equity in earnings of Bayview Lending were - $8.687 million compared with + $14.529 million in Q4-07. Nonaccrual loans of $755.397 million [$431.282 million in Q4-07] plus Accruing loans past due 90 days or more of $158.991 million [$77.319 million in Q4-07] plus Renegotiated loans of $91.575 million [$15.884 million in Q4-07] plus OREO of $99.617 million [$40.175 million in Q4-07] resulted in a calculated NPAs of $1.105 billion compared with $0.564 billion in Q4-07. With Total assets of $65.816 billion, NPAs were 1.68% of assets. Net charge-offs of loans were $144 million [1.17% of average loans outstanding] compared with $53 million [.46%] during Q4-07. NAL Reports $0.10 for Q4-08 vs. $0.11 in Q4-07 Business Wire 1-27 New Haven's NewAlliance Bancshares reported Q4-08 Net income of $9.6 million [$0.10/share] compared to $10.9 million [$0.11/share] during Q4-07. [2008 EPS was $0.45/share] ROE was 2.76%. ROA was 0.47%. Book value per share was $12.90. Tier 1 leverage ratio was 11.05%. The total risk-based ratio was 19.80%. Net interest income after provision for loan losses was $44.003 million compared with $43.030 million in Q4-07. The net interest margin was 2.59% compared to 2.49% for Q4-07. Total interest-earning assets of $7.386 billion earned $98.737 million at an average yield of 5.35%. Total interest-bearing liabilities of $6.320 billion cost $50.934 million at an average yield of 3.22%.The cost of liabilities ran high due to 28% of liabilities coming from time deposits at an average yield of 3.1% and 35% of liabilies coming from FHLB advances and other borrowings at an average yield of 4.50%. Total non-interest income was $12.306 million compared with $14.246 million. Nonperforming loans of $38.331 million were 0.77% of total loans were 0.77% as compared to $34.996 million [0.71%] in Q3-08. Total nonperforming assets of $40.354 million were 0.49% of total assets as compared to $36.335 million [0.44%] for Q3-08. Net charge-offs experienced a slight increase of approximately $240,000 to $3.1 million [1.01% of total loans]. NBTB Reports $0.45 for Q4-08 vs. $0.28 in Q4-07 Market Wire 1-26 Norwich, NY's NBT Bancorp reported Q4-08 net income of $14.9 million [$.45/share] compared with $9.0 million [$0.28/share] for Q4-07. [2008 EPS was $1.80] ROE was 13.88%. ROA was 1.11%. Book value was $13.24. Tier 1 Leverage Ratio was 7.17%. Tier 1 Capital Ratio was 9.75%. Total Risk-Based Capital Ratio was 11.00%. Net interest income was $48.9 million compared with $41.9 million for Q4-07. FTE net interest margin increased from 3.61% for Q4-07 to 4.06%. There was a 3.7% growth in average earning assets, due primarily to an increase in average loans and leases. Although the yield on interest earning assets decreased 51 bps, the yield on interest bearing liabilities declined 113 bps. The yield on money market deposit accounts declined from 3.24% for Q4-07 to 1.61%, while the yield on time deposits decreased 124 bps. The yield on short term borrowings declined 344 bps, as a result the 400 bps drop in the Fed funds rate. Noninterest income was $20.2 million compared with $16.5 million for Q4-07. The increase was due primarily to an increase in broker/dealer and insurance revenue of approximately $2.9 million, due primarily to revenue generated by the acquisition of Mang Insurance Agency. Nonperforming loans at December 31, 2008 were $26.5 million or 0.73% of total loans and leases compared with $30.6 million or 0.88% at December 31, 2007. The decrease in nonperforming loans at December 31, 2008 from December 31, 2007 was primarily the result of net charge-offs during the 12 month period ending December 31, 2008 related to two large commercial loans, both of which had been previously identified and reserved for in 2007. NPLs of $26.496 plus OREO of $0.665 million resulted in Total Nonperforming Assets of $27.161 million [0.51% of total assets]. Net charge-offs totaled $5.0 million [0.54% of average loans] compared with $14.1 million [1.62%] for Q4-07. NTRS Reports $1.47 for Q4-08 vs. $0.55 in Q4-07 PRNewswire 1-21 Chicago's Northern Trust Corporation reported Q4-08 net income of $342.3 million [$1.47/share] compared with $125.0 million [$0.55/share] reported in Q4-07. ROE was 26.15%. ROA was 1.72%. Book value was $21.89. The Tier 1 ratio was 13.1%. while the Total Risk-based Capital (Tier 1 + Tier 2) ratio was 15.4%. FTE Net interest income totaled $348.3 million, up 38% from $252.5 million reported in Q4-07, primarily reflecting higher levels of average earning assets and an increase in the net interest margin. Average earning assets of $69.4 billion were 23% higher than a year ago, driven by growth in loans, securities and money market assets. The net interest margin was 2.00%, up from 1.79% in Q4-07. Total Noninterest Income was $801.4 million compared with $720.3 million in Q4-07. Trust, Investment and Other Servicing Fees were $488.1 million, down from $547.2 million in Q4-07 [primarily reflecting lower market valuations, partially offset by new business. Corporate & Institutional Services assets under custody totaled $2.7 trillion, down 28% from a year ago in comparison to the twelve month decline in the S&P 500 index of approximately 38% and in the EAFE index (USD) of approximately 45%.]. Foreign Exchange Trading Income was $234.6 million compared with $111.2 million in Q4-07 [reflecting exceptionally high levels of currency volatility]. Other operating income equaled $84.1 million compared with $24.8 million in Q4-07. The increase primarily reflects a $33.3 million increase in non-trading foreign exchange gains, $20.6 million of valuation gains recorded on credit default swap contracts, and a $5.4 million increase in commercial loan-related commitment fees. Nonperforming loans totaled $96.7 million [.31% of total loans and leases] compared with $58.8 million at September 30, 2008 and $23.2 million at December 31, 2007. The increase from Q3 primarily reflects the addition of two loans to nonperforming status. The reserve for credit losses of $251.1 million included $22.0 million allocated to loan commitments and other off-balance sheet exposures compared with $12.1 million in the prior year. Nonperforming Loans of $96.7 million plus OREO of $3.5 million resulted in Total Nonperforming Assets of $100.2 million [0.33% of loans + OREO]. With Total Assets of $79.355 billion, NPAs were 0.13% of assets. Net Charge-offs were $15.8 million [0.21% of average loans] compared with $2.3 million [0.04%] in Q4-07. ONB Reports $0.10 for Q4-08 vs. $0.34 in Q4-07 Globe Newswire 1-26 Evamsville, Indiana's Old National Bancorp reported Q4-08 earnings of $6.6 million [$0.10/share] compared with $22.0 million [$0.34/share] for Q4-07. Q4-08 included a higher than anticipated provision for loan losses of $17.0 million and the write-off of a check fraud loss in the amount of $6.3 million. [08 EPS was $0.95/share] ROA was 0.35%. ROE was 4.05%. Book Value per share was $9.56. The total risk-based capital ratio was 15.44%, tier 1 risk-based capital ratio was 13.11% and the leverage ratio was 9.75%. FTE Net interest income was $68.0 million and represented a net interest margin on total average earning assets of 3.96%. This compares to net interest income of $64.5 million and a margin of 3.79% for Q3-08 and net interest income of $62.2 million and a margin of 3.56% for Q4-07. With Total Investments $2.296 billion and Total Earning Assets of $7.073 billion, investments were 32% of earning assets. Fees, service charges and other revenue were $36.6 million compared to $39.1 million for Q3-08 and $43.7 million in Q4-07. Net Charge-offs of $13.4 million were 1.14% of Average Loans. Non-Performing Loans of $64 million were 1.34% of ending loans. OREO of $2.9 million was 0.06% of ending loans. NPLs of $64 million plus OREO of $2.9 million plus loans 90 days and over but still accruing of $2.9 million resulted in Total under-performing assets of $69.9 million, which were 1.46% of end of period loans and 0.89% of assets. SNV Reports - $1.93 for Q4-08 vs. $0.16 in Q4-07 Business Wire 1-22 Columbus, Georgia's Synovus reported Q4-08 a net loss of $637 million [- $1.93/share] compared to income from continuing operations of $53.1 million [$0.16/share] for Q4-07. The Q4-08 results include provision expense of $364 million and a $443 million non-cash goodwill impairment charge. Excluding the goodwill impairment charge, Synovus’ net loss would have been $195 million [$0.59/share] for the quarter. [08 EPS was - $1.77/share.] ROA was - 7.17%. ROE was - 76.55%. Book Value per share was $8.71. As of December 31, 2008, the Tier 1 Capital Ratio was 11.22%, Total Risk-Based Capital Ratio was 14.55%, and Tangible Common Equity to Tangible Assets Ratio was 7.91%. Net interest income was $258.025 million compared with $286.685 million in Q4-07 while the Provision for loan losses was $363.867 million compared with $70.642 million in Q4-07 resulting in Net interest income after provision of - $105.842 million compared with $216.043 million in Q4-07. The Net Interest Margin was 3.20% compared with 3.86% in Q4-07. Total Interest Earning Assets of $32.308 billion had an average yield of 5.44%. Total Interest Bearing Liabilities of $27.939 billion had an average yield of 2.59%. Total non-interest income was $88.561 million compared with $98.998 million in Q4-07, with declines partially due to asset management fees falling to $11.168 million from $13.110 million in Q4-07 and investment banking revenue falling to $7.528 million from $8.598 million in Q4-07. Nonperforming Loans of $921.708 million plus Impaired Loans Held for Sale of $3.527 million plus OREO of $246.121 million resulted in Nonperforming Assets of $1.171 billion. With Total assets of $35.683 billion, NPAs were 3.28% of assets. The ratio of nonperforming assets to loans, impaired loans held for sale, and OREO was 4.16%, as of December 31, 2008, compared to 3.58% last quarter. Nonperforming loans were $922 million as of December 31, 2008, an increase of $152 million from Q3-08. The Atlanta market represents 29% of Synovus’ total loans in the residential construction and development portfolios and 45% of the nonperforming loans in the residential construction and development portfolios. Net Charge-Offs for Q4-08 were $229.402 million are 3.25% of average loans compared to 1.53% last quarter. SUSQ Reports $0.21 for Q4-08 vs. $0.27 in Q4-07 Business Wire 1-28 Lititz, Pa's Susquehanna Bancshares reported for Q4-08 Net income available to common shareholders of $18.2 million [$0.21/share] compared to $18.7 million [$0.27/share] for Q4-07. [2008 EPS was $0.95/share] ROA was 0.56%. ROE was 4.37%. Book value per share was $19.21. Total risk-based capital ratio was 13.52%. Tier I capital ratio was 11.17%. The leverage capital ratio was 9.92%. Net interest income was $99.801 million [$83.344 million in Q4-07] while the Provision for loan and lease losses was $22.525 million [$15.497 million in Q4-07]. The Net interest margin was 3.52%. Total interest-earning assets of $11.644 billion earned $174.676 million at an average yield of 5.97%. Total interest-bearing liabilities of $10.437 billion cost $71.738 million at an average yield of 2.73%. [Why so high? Time deposits of $4.877 billion had an average 3.54% cost while FHLB borrowings of $1.315 billion had an average 3.58% cost.] Noninterest income was $36.804 million compared with $36.938 million in Q4-07. Net charge-offs of $14.350 million were 0.60% of average loans and leases. Non-performing assets as a percentage of loans, leases and OREO was 1.22%. Nonaccrual loans & leases of $105.313 million plus Restructured loans of $2.566 million plus OREO of $10.313 million resulted in Total nonperforming assets of $118.192 million. With Total assets of $13.595 billion, NPAs were 0.87% of assets. USB Reports $0.15 for Q4-08 vs. $0.53 in Q4-07 Business Wire 1-21 Minneapolis' U.S. Bancorp reported Q4-08 net income of $330 million [$0.15/share] compared with $942 million [$0.53/share] reported for Q4-07. Included in Q4-08 results were securities/market valuation losses totaling $253 million [$.09/share] and a provision for credit losses in excess of net charge-offs of $635 million [$.25/share]. ROA was 0.51% while ROE was 5.3%. Book value was $10.47. The Tier 1 capital ratio was 10.6% while the Total risk-based capital ratio was 14.3%. Net interest income was $2.161 billion compared with $1.967 billion in Q3-08 and $1.763 billion in Q4-07. The increase was a result of growth in average earning assets, as well as a higher net interest margin than a year ago. Average earning assets for the period increased compared with Q4-007 by $25.7 billion (12.8%, 9.4% excluding acquisitions). The Net interest margin was 3.81% compared with 3.65% in Q3-08 and 3.51% in Q4-07. The net interest margin increased because of growth in average loans at higher credit spreads, asset/liability re-pricing in a declining rate environment, wholesale funding mix during a period of significant volatility in short-term funding markets and the benefit of net free funds. Noninterest income was $1.463 billion compared with $1.412 billion in Q3-08 and $1.811 billion in Q4-07. Compared to Q4-07, Trust and investment management fees fell $44 million while Securities losses were $253 million compared with a gain of $4 million in Q4-07. Nonperforming assets were $2.624 billion, compared with $1.492 billion at September 30, 2008. Included in this increase were $643 million of assets covered by the loss agreements with the FDIC and related to the Downey Savings and Loan and PFF Bank and Trust acquisitions of 11-21-08. UBS will incur the first $1.6 billion of specified contractual losses on covered assets, which was approximately the amount of the predecessors’ net assets. USB acquired these net assets for a nominal amount of consideration. After the First Loss Position, UBS will incur 20% of the next $3.1 billion of specified contractual losses and only 5% of specified losses beyond that limit. Without the addition of the covered assets, nonperforming assets grew by $489 million quarter-over-quarter. Nonperforming assets to loans plus OREO, excluding covered assets, was 1.14% at December 31, 2008 compared with 0.88% at September 30, 2008. With Total assets of $265.912 billion, NPAs to asset ratio was 0.99%. Total net charge-offs [excluding covered assets] to total loans ratio was 1.45% compared to 1.19% in Q3-08 and 0.59% in Q4-07. Total net charge-offs were $632 million compared $498 million in Q3-08 and $225 million in Q4-07. From the conference call: Auto lease losses are up, but lower 2008 auto sales resulted in USB [and probably other banks] having a lower amount of these loans going forward. What can the government do to turn around the banking industry? We are optimistic. USB is fairly simple, and a shrinking economy hurts us. The headlines are telling the world hat banks are not lending. That is not true of us. The new administration may add confidence back in the market. It will take time to work real estate problems. The risk premium is back. The yield curve is back. The structure of core banking is sound. On the dividend, if you under-earn the dividend, would you look at the payout ratio? USB: Yes. Every 90 days we look at the div. We will cover the div by earnings or reduce the div. But we will not cut the div until there are reduced earnings. Can we get more color on your CNI losses? USB: One was a pipeline and storage company - one was in gaming industry. What other industry group are you watching more closely? USB: You can see 90 days out - and after that it is blurry. We continue to build reserves and project more losses. There is no evidence of things turning around. Could you give more color on the Processing business decreases? USB: both corporate and retail are down. Airlines, hospitality, retail and government spending were all down. Our processing business is affected by that. We are not losing customers, but our customers are doing less business. Can you give color on your 16 bps margin expansion? USB: LIBOR coming down helped us. Nov was volatile and that helped us because we were long LIBOR. What is your re-default rate on re-structured loans? USB: We have been doing this a couple of years. On residential mortgages, 13% become problems again. But that includes older loans. We have been more successful than our piers. We may tackle problems early than others. But we would do restructuring in an effort to save the customer relationship. What unemployment scenario are you projecting? USB: We are projecting 7% to 8% - maybe 8% by year's end. But our loan portfolios are prime based, so we have not yet felt the effect of rising unemployment. CNI lending losses will be lumpier. For us, our California commercial write downs are done and over with. We will see an increase in problems because the world is getting tougher. For example, the current 5.189% default rate on credit cards - we expect to rise to 6.5%. VLY Reports $0.11 for Q4-08 vs. $0.22 in Q4-07 PRNewswire 1-22 Wayne, New Jersey's Valley National reported Q4-08 net income available to common sharesholder of $14.840 million [$0.11/share] compared with $27.661 million [$.22/share] in Q4-07. The Q4-08 results include impairment charges on investment securities totaling $17.5 million [$10.8 million after taxes or $0.08/share]. $3.3 million related to Fannie Mae and Freddie Mac perpetual preferred shares and $14.2 million related to pooled trust preferred securities. ROA was 0.47%. ROE was 5.44%. Book value was $7.93. The Tier 1 leverage ratio was 9.10%. The Risk-based capital [Tier 1] was 11.45%. The Risk-based capital [on Total Capital] was 13.19%. FTE Net interest income was $108.7 million, an $11.9 million increase from Q4-07 and a decrease of $7.9 million from Q3-08. The linked quarter decrease was primarily due to a 30 bps decline in the yield on interest earning assets and additional interest expense related mainly to higher average interest-bearing liabilities. The yield on interest earning assets declined 18 bps due to the elimination of dividends on Freddie Mac and Fannie Mae preferred securities, a reduction in cash dividends on FHLB stock, lower yields on prime based loans, and a decrease of 98 bps in the average target Federal funds rate which negatively affected Valley's increased cash position. The cost of average interest bearing liabilities increased 7 bps from the third quarter of 2008 mainly due to the higher cost of long and short-term borrowings. The FTE net interest margin was 3.30% compared with 3.64% in Q3-08 and 3.41% for Q4-07. Valley's cost of total deposits remained relatively low by industry standards at 1.76%. Total interest earning assets of $13.186 billion earned $187.934 million at an average yield of 5.70%. Total interest bearing liabilities of $10.955 billion cost $79.204 million at an average yield of 2.89%. Non-interest income was - $1.8 million compared with income of $6.7 million for Q4-07 primarily due to a decrease in net trading gains of $10.9 million from a year ago. Net trading gains also included losses recognized on the mark to market value of trading securities of $2.2 million for Q4-08, a decline from a gain of $1.3 million Q4-07. Total non-performing assets, consisting of non-accrual loans [$33.073 million], OREO [$8.278 million], and Other repossessed assets [$4.317 million] totaled $45.7 million [0.45% of loans]. With Total Assets of $14.718 billion, NPAs were 0.31% of assets. Net loan charge-offs were $6.7 million [0.21% of average loans] compared to $4.4 million for Q3-08, and $4.6 million for Q4-07. WL Reports - $1.02 for Q4-08 vs. $0.65 in Q4-07 Business Wire 1-30 Wilmington, Delaware's Wilmington Trust Corporation reported a loss for Q4-08 of $68.5 million [- $1.02/share] compared with a gain of $44.0 million [$0.65/share] in Q4-07. The two primary factors that affected results were: Sharp declines in the value of some securities where WL recorded a $98.4 million [$62.4 million after tax or- $0.91/share] and an increase in the provision for loan losses of $67.5 million due to downgrades in internal risk ratings, reductions in appraised values, higher loan charge-offs, and higher levels of nonperforming loans. [2008 EPS was a loss of $0.36/share while 08 Operating net income was + $102.8 million, or $1.51/share] ROE was -25.34%. ROA was - 2.22%. Book value at period end was $14.65. Total risk-based capital ratio was 13.87%. Tier 1 risk-based capital ratio was 9.17%. Tier 1 leverage capital ratio was 8.79%. Net interest income was $94.6 million compared with $91.1 million in Q4-07 while the Provision for loan losses was $67.5 million compared with $9.2 million in Q4-07 resulting in NII after provision of $27.1 million compared with $81.9 million in Q4-07. The net interest margin was 3.34%. Total earning assets had an average yield of 5.18% while Total interest-bearing liabilities had an average yield of 2.09%. Noninterest income was $8.6 million compared with $102.7 million in Q4-07 with the decrease due to security mark downs. At December 31, 2008, nonaccruing loans totaled $196.3 million, which was $96.2 million higher than at September 30, 2008. Approximately $78.4 million of this increase was associated with several commercial construction loans to residential housing developers with projects in the mid-Atlantic region. Total nonaccruing loans of $196.3 million plus Renegotiated loans of $0.1 million plus OREO of $14.5 million resulted in total nonperforming assets of $210.9 million [2.19% of total loans]. With total assets of $12.319 billion, NPAs were 1.71% of assets. Net charge-offs were $25.3 million [0.26% of average loans], up from $10.5 million for Q3-08, with commercial construction as well as consumer and other retail loans accounting for the increase. Bernstein sees higher 2008-10 loan losses at US banks Reuters 1-08 The deepening of the financial crisis with increased credit costs dampen the investment case for U.S. banks, as severe losses will reduce future book value, and further delay normalized returns, analysts at Sanford C. Bernstein said. Analysts led by Kevin St. Pierre raised their 2008-2010 total loss estimate for the industry by 11 percent to $420 billion, and said they remain "cautious" on the sector. "Driven by the more negative macro assumptions, we are increasing our industry loan loss estimates by loan type. The net result is a higher, later, more prolonged peak in charge-offs," the analysts wrote in a note to clients. The banks that will be "most dramatically impacted" by the brokerage's higher credit loss estimate are Citigroup, Synovus Financial, Marshall & Ilsley and KeyCorp, the analysts said. These banks will see a cumulative 2009-2010 earnings per share decline of more than 75 percent to 125 percent, the analysts, who also cut their price target and changed their 2008 profit/loss estimates on 15 U.S. banks. Financial shares surge on hope of 'bad bank' plan WSJ 1-28 Hopes that a "bad bank" can lead to good things for the financial sector and the economy helped to rally stocks as investors awaited the outcome of the latest meeting of Federal Reserve policy makers. Late Tuesday, CNBC reported that President Barack Obama was nearing a plan to create a so-called bad bank that would relieve lenders of the soured loans many are carrying on their books. Bloomberg News said Wednesday the Federal Deposit Insurance Corp. may manage the plan. Some estimates peg the amount of bad assets the U.S. could take on at roughly $1 trillion. Ratings & Dividend Changes - January On 1-15 MI announced that the dividend has been reduced to $0.01 per share. The next regular dividend declaration date is in February 2009. On 1-27 CMA declared a reduced dividend of $0.05/share payable April 1, 2009, to common stock shareholders of record on March 15, 2009. On 1-29 WL declared a reduced dividend of $0.1725/share payable on February 16, 2009, to shareholders of record on February 9, 2009. This was 50% lower than the Q3-08 dividend of $0.345/share. On 1-16 FMER declared a dividend of $0.29/share payable March 16, 2009 to shareholders of record on March 2, 2009. On 1-22 HBAN declared a decreased dividend of $0.01/share payable April 1, 2009, to shareholders of record on March 13, 2009. On 1-22 ONB declared a dividend of $.23/share payable March 16, 2009, to shareholders of record March 2, 2009. On 1-26 NTBT declared a dividend of $0.20/share to be paid on March 15, 2009, to shareholders of record as of March 1, 2009. On 1-27 NAL declared a dividend of $0.07/share on February 18, 2009 to shareholders of record on February 6. On 1-28 ASBC declared a dividend of $0.32/share payable on February 17, 2009, to shareholders of record on February 6, 2009. On 1-30 MBFI declared a reduced dividend of $0.12/share to shareholders of record as of February 13, to be paid on February 27. On 1-14 Friedman Billings Initiated HBAN at Market Perform. On 1-15 Friedman Billings Initiated NTB at Outperform. On 1-22 Argus Downgraded FITB from Hold to Sell. On 1-22 Keefe Bruyette Downgraded FULT from Market Perform to Underperform. On 1-23 Keefe Bruyette Upgraded BBT from Underperform to Market Perform. On 1-23 Boenning & Scattergood Downgraded CRBC from Outperform to Neutral. On 1-23 Morgan Keegan Downgraded FITB from Outperform to Market Perform. On 1-26 Barclays Capital Initiated NAL at Equal Weight. On 1-26 Keefe Bruyette Downgraded CRBC from Outperform to Market Perform. On 1-26 US Bancorp cut to Sell from Neutral by Goldman Sachs. On 1-27 Argus Downgraded USB from Buy to Hold. On 1-29 Wunderlich Initiated SNV at Hold. On 1-30 Bernstein Downgraded FITB from Outperform to Market Perform. Ratings & Dividend Changes - December On 12-09 SNV declared a dividend of $0.06/share payable on January 2, 2009, to Synovus shareholders of record as of the close of business on December 18, 2008. On 12-09 Ladenburg Thalmann analyst Richard Bove cut his estimates on Fifth Third Bancorp, due to his expectations for increased loan losses in the coming quarters. Bove now expects full-year earnings of $0.11/share, down from a prior estimate of $.016/share. He also reduced his 2009 estimate to $0.77/share from $.94/share. Analysts surveyed by Thomson Reuters, on average, predict a profit of $0.08/share in 2008 and $0.70/share in 2009. Bove said it seems likely that Q4-08 loan losses may be higher than those posted in Q3. Total net losses charged off in Q3 were $463 million. Additionally, 2009 loan losses could be higher than in 2008, as Fifth Third's primary markets of Ohio and Michigan likely face further disruption from the troubles in the auto industry. "Overall, it appears that Fifth Third will be able to grow its net interest income due to less competition leading both to higher market share and better margins," Bove wrote. "Virtually all of the gains, however, may be eroded by loan losses." Bove maintained a "Neutral" rating on the shares and cut his 12-month target price to $11 from $15. On 12-22 Boenning & Scattergood Initiated FULT at Market Perform. On 12-19 FTN Midwest Downgraded FULT from Neutral to Sell. On 12-18 Keefe Bruyette Upgraded NTRS from Market Perform to Outperform. On 12-17 JP Morgan Downgraded SNV from Overweight to Neutral. On 12-15 Sun Trust Rbsn Humphrey Downgraded SNV from Buy to Neutral. On 12-11 Keefe Bruyette Downgraded ONB from Market Perform to Underperform. On 12-16 FITB declared a reduced dividend of $0.01/share, a reduction from the third quarter level of $0.15/share. The dividend will be payable on January 22, 2009 to shareholders of record on December 31, 2008. "Fifth Third and the banking industry are currently operating in a very difficult environment, particularly related to trends in economic activity and employment levels," said Kevin T. Kabat, chairman, president and CEO of Fifth Third Bancorp. "It is not currently clear when those trends will begin to improve but we do not expect improvement in the near term. On 12-10 FMBI declared a reduced dividend of $0.225/share, payable on January 13, 2009 to stockholders of record as of the close of business on December 19, 2008. The fourth quarter dividend represents an annualized yield of 5.0% based on First Midwest's closing price on December 9, 2008. This payment represents a reduction of $0.085 per share or 27% from the dividend paid by FMBI for Q3-08. "Modification of our dividend generates additional equity capital, fortifying our balance sheet as we position ourselves to successfully manage through what is expected to be a period of increasing economic challenge," said Michael L. Scudder, President and Chief Executive Officer. On 12-18 Goldman Sachs Group analyst Brian Foran said BB&T is likely to have to increase its loan-loss reserves through 2009, which led an analyst Thursday to add the regional bank to a "Conviction Sell List" and cut earnings estimates. Foran said continued deterioration in credit quality, especially for mortgages concentrated in BB&T's Southeastern operations, will force the bank to increase its reserves. Those added reserves will reduce earnings potential in 2009 and 2010, Foran wrote in a research note. Foran said BB&T will probably have to increase reserve levels from the current 1.4 percent of total loans to about 2 percent over the next year. That reserve build will cut into the bank's profit. Foran cut his 2009 earnings estimate to $1.75 per share from $1.90 per share. He slashed his 2010 estimate to $2.10 per share from $2.30 per share. Analysts polled by Thomson Reuters, on average, forecast earnings of $2.32 per share for 2009 and $2.88 per share for 2010. Though Foran said that BB&T is one of the stronger banks amid the ongoing economic downturn, its valuation is still much higher than peers, which also factored into him adding the bank to the sell list. Foran's price target for the stock is $24. 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