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The Q2-09 div is used for yield calculations, but not all Q2 divs have been declared CATY, CYN, UCBH & WTNY have lowered their Q2-09 divs - RF has announced a reduction to the Q3-09 dividend Negative EPS estimates will crash this javascript. The lowest EPS estimate that I use is $0.10. So the Div/EPS ratios are inaccurate for banks with negative EPS estimates [CNB, EWBC, FHN, PCBC, RF, UCBH, ZION]. 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. BOH Reports $0.75 vs. $1.18 in Q1-08 Business Wire 4-20 Honolulu's Bank of Hawaii reported Q1-08 net income of $36.0 million [$0.75/share] compared with $57.2 million [$1.18/share] in Q1-08. Q1-09 included a pre-tax gain of $10.0 million in leveraged leases while Q1-08 included pre-tax gains of $25.3 million on Visa and one early buy-out lease. Q1-09 included a provision for credit losses of $24.9 million as compared to $14.4 million in Q1-08. ROA was 1.32%. ROE was 17.86%. Book Value per share [from Yahoo] was $16.56. Tier 1 Capital Ratio was 12.02%. Total Capital Ratio was 13.28%. Leverage Ratio was 6.94%. Tangible Common Equity to Total Assets ratio was 6.97%. Tangible Common Equity to Risk-Weighted Assets 12.47%. FTE Net interest income was $97.3 million compared with $102.4 million in Q1-08 and $106.1 million in Q4-08. The decrease was largely due to significant growth and liquidity in the balance sheet during Q1-09. The net interest margin was 3.76% compared with 4.17% in Q1-08 and 4.43% in Q4-08. The decrease was largely the result of lower interest rates and BOH's strategy to increase deposits and liquidity, and to reduce risk. Total Earning Assets of $10.378 billion produced income of $123.2 million at an average yield of 4.77%. Total Interest-Bearing Liabilities of $8.025 billion produced expenses of $25.9 million at an average yield of 1.30%. Noninterest income was $70.4 million compared to $86.1 million in Q1-08 and $54.5 million in Q4-08. Q1-09 included the gain on a leveraged lease while Q1-08 included the Visa and lease gains. Adjusted for these items, noninterest income was $60.3 million in Q1-09 compared to $60.8 in Q1-08 and $54.5 million in Q4-08. Net charge-offs were $14.0 million [0.88% annualized of total average loans and leases] compared to $5.4 million in Q1-08 and $10.6 million in Q4-08. Total Non-Accrual Loans and Leases of $39.983 million plus OREO of $.346 million resulted in Non-Performing Assets of $40.329 million. NPAs to total loans + OREO ratio was 0.64%. With total assets of $11.096 billion, NPAs were 0.36% of assets. BOKF Reports $0.81 vs. $0.92 in Q1-08 Business Wire 4-29 Tulsa, Oklahoma's BOK Financial reported for Q1-09 net income of $55.0 million [$0.81/share] compared with $62.3 million [$0.92/share] in Q1-08. Q1-08 included after-tax gains from Visa and reversal of accrued contingent liabilities of $6.2 million [$0.09/share]. ROA was 0.97%. ROE was 11.65%. Book Value per share [from Yahoo] was $28.57. Tier 1 equity ratio was 9.76%. Tangible common equity ratio was 6.84%. Net interest revenue totaled $169.8 million, up $22.7 million over Q1-08. Net interest margin was 3.47% compared with 3.57% for Q4-08. The FTE yield on earning assets was 4.75% compared with 6.17% in Q1-08 while the cost of interest-bearing liabilities was 1.50% compared with 3.36% in Q1-08.Fees and commissions revenue totaled $121.5 million compared with $110.9 million for Q4-08 and $113.9 million for Q1-08. Mortgage banking revenue grew $11.3 million or 156% over Q4-08 driven by increased volume in refinancing due to government initiatives to lower national mortgage interest rates. BOKF's securities portfolio totaled $7.7 billion at 3-31-09, up $665 million since 12-31-08. The increase in securities portfolio included $589 million of net securities purchased and a $69 million increase in the net fair value of available for sale securities. This portfolio consisted primarily of mortgage-backed securities, including $5.6 billion fully backed by U.S. government agencies, $1.2 billion privately issued by publicly owned financial institutions, and $16 million in preferred stocks issued by six financial institutions. Total nonaccruing loans of $339.235 million [$99.137 million in Q1-08] plus Renegotiated loans of $13.623 million [$11.850 million] plus OREO and other repossessed assets of $61.383 million [$15.112 million] resulted in Total nonperforming assets of $414.241 million [$126.099 million in Q1-08]. NPAs to period end loans and repossessed assets was 3.26% compared with 1.02% in Q1-08. With total assets of $22.943 billion, NPAs were 1.80%. Net charge-offs were $31.871 million [1.00% of average loans] compared with $8.857 million [0.29%] in Q1-08. BXS Reports $0.35 vs. $0.43 in Q1-08 PRNewswire 4-20 Tupelo, Mississippi's BancorpSouth for Q1-09 net income of $29.5 million [$0.35/share] compared with $35.1 million [$0.43/share] for Q1-08. ROA was 0.90%. ROE was 9.65%. Book Value per share was $15.11. Shareholders' equity to asset ratio increased to 9.33%. The ratio of tangible equity to assets rose to 7.29%. Net interest revenue was $109.9 million compared with $110.1 million for Q1-008. FTE net interest margin was 3.74%, down from 3.79% for Q1-08. Total interest earning assets of $12.187 billion produced income of $158.194 million at an average yield of 5.26%. Total interest bearing liabilities of $10.242 billion produce an expense of $45.742 million at an average yield of 1.81%. Noninterest revenue was $66.3 million compared with $66.2 million for Q1-08. These results included a $3.4 million pre-tax write down of the mortgage servicing asset for both Q1-09 and Q1-08. Results for Q1-08 included a $2.8 million gain related to the sale of Visa common stock. Non-accrual loans and leases of $38.936 million [$14.709 million in Q1-08] plus Loans and leases 90+ days past due, still accruing of $27.299 million [$21.522 million in Q1-08] plus Restructured loans and leases, still accruing of $7.581 million [$2.493 million in Q1-08] plus OREO of $47.450 million [$26.623 million in Q1-08] resulted in Total non-performing assets were $121.266 million [compared with $65.347 million in Q1-08]. With Total Assets of $13.458 billion, NPAs were 0.90% of assets. Annualized net charge-offs were 0.54% of average loans and leases compared with 0.29% for Q1-08. CATY Reports $0.12 vs. $0.55 in Q1-08 PRNewswire 4-23 Los Angeles' Cathay General reported for Q1-09 net income of $10.2 million [$0.12/share] compared to $27.3 million [$0.55/share] in Q1-08. ROA was 0.37%. ROE was 3.21%. Book Value per share was $20.92. Total capital ratio was 14.34%. Tier 1 risk-based capital ratio was 12.50%. Total risk-based capital ratio was 14.34%. Tier 1 leverage capital ratio was 9.65%. Net interest income before provision for credit losses was $70.4 million compared to $75.2 million during Q1-08. The decrease was due primarily to the larger decline in earning asset yields compared to rates paid for deposits and borrowings. FTE net interest margin was 2.69% compared with 2.85% in Q4-08 and 3.16% in Q1-08. The decrease primarily resulted from the increase in the borrowing rate on CATY's long term repurchase agreements and smaller decreases in rates paid on core deposits and other borrowed funds. The majority of our variable rate loans contain interest rate floors, which help limit the impact of the recent decreases of the prime interest rate. Total interest-earning assets of $10.630 billion produced income at an average yield of 5.26% while Total interest-bearing liabilities of $9.179 billion produced expenses at an avereage yield of 2.98%. The cost of liabilities was higher than average due to CATY having $4.961 billion in Time deposits that had an average yield of 2.94%. Non-interest income was $27.7 million compared to $6.5 million for Q1-08. The increase was primarily due to increases in net gains on sale of available-for-sale securities of $22.5 million. Offsetting the increase were a $947,000 decrease in venture capital income, included in other operating income, primarily due to write-downs on venture capital investments. Total charge-offs for the first quarter of 2009 included $14.4 million of charge-offs on ten residential construction loan borrowers in California, $5.0 million charge-off on two office building construction loans in California, a $1.3 million charge-off on a residential construction loan in Nevada, a $1.3 million charge-off on a residential construction loan in Texas, and $11.1 million of charge-offs on twenty six commercial loan borrowers. Net loan charge-offs were $38.0 million compared to $4.7 million in Q1-08 as a result of the continuing weak economy and the decline in residential housing values. Total non-performing loans of $226.237 million [$187.935 million at the end of Q4-08] plus OREO of $67.799 million [$63.892 million] resulted in Total non-performing assets of $294.036 million [$251.827 million in Q4-08]. Non-performing assets to total assets was 2.6% at March 31, 2009, compared to 2.2% at December 31, 2008. CBSH Reports $0.40 vs. $0.84 in Q1-08 PRNewswire 4-22 Kansas City's Commerce Bancshares reported Q1-09 net income of $30.8 million [$0.40/share] compared to $64.2 million [$0.84/share] in Q1-08. Q1-08 included a $22.2 million gain on VISA and the reversal of VISA litigation charges totaling $8.8 million, which increased EPS by approximately $0.26. The loan loss provision increased $23.2 million over Q1-08. ROA was 0.73%. ROE was 7.80%. Book Value per share was $21.19. The ratio of tangible common equity to total assets was 8.2%. Tier I leverage ratio was 8.93%. Net interest income was $150.0 million, a decrease of $6.3 million from Q4-08 and an increase of $9.9 million compared to Q1-08. The FTE net yield on earning assets was 3.83%, compared with 4.06% in Q3-08 and 3.83% in Q1-08. Total interest earning assets of $16.281 billion produced income of $193.874 million at an average yield of 4.93%. Total interest bearing liabilities of $14.687 billion produced expenses of $43.859 million at an average yield of 1.21%. Total non-interest income amounted to $92.4 million, a slight increase compared to $92.2 million in Q1-08. Non-Accrual Loans of $110.019 million [$25.190 million in Q1-08] plus OREO of $8.666 million [$10.639 million in Q1-08] resulted in Total Non-Performing Assets of $118.685 million [$35.829 million in Q1-08]. NPAs to Loans ratio was 1.08% while NPAs to Total Assets was 0.66%. Net loan charge-offs amounted to $34.9 million compared with $24.7 million in Q4-08 and $11.9 million in Q1-08. CFR Reports $0.76 vs. $0.89 in Q1-08 PRNewswire 4-22 San Antonio's Cullen/Frost reported Q1-09 net income of $45.0 million [$0.76/share] compared to $52.8 million [$0.89/share] in Q1-09. Expense growth was affected by a $4.1 million increase in FDIC premiums. ROA was 1.23%. ROE was 10.33%. Book Value per share was $30.34. Tier 1 Risk-Based Capital Ratio was 10.64%. Total Risk-Based Capital Ratio was 12.98%. The Leverage Ratio was 8.70%. FTE net interest income was $137.7 million compared to the $134.8 million in Q1-08. The net interest margin was 4.33% compared to the 4.67% in Q1-08. The drop was due, in part, to rate cuts by the Federal Reserve totaling 200 bps since the end of Q1-08. Non-interest income $69.9 million compared to $70.2 million reported a year earlier. Trust fees fell to $16.0 million, from the $18.3 million reported in Q1-08. Service charges on deposits were $24.9 million, up $5.3 million or 27.1% compared to Q1-08. Insurance commissions and fees were $10.8 million compared to $11.2 million reported for Q1-08. Net charge-offs were $5.677 million [0.26% of average loans]. Non-accrual loans of $114.233 million plus Foreclosed assets of $13.533 million resulted in Total Non-performing assets were $127.766 million [1.45% of total loans + OREO and 0.83% of Total assets]. CNB Reports - $0.86 vs. $0.16 in Q1-08 Business Wire 5-04 Montgomery, Alabama's Colonial BancGroup reported for Q1-09 a loss of $168 million [- $0.86/share] compared to $30.133 million [$0.16/share] in Q1-08. [CNB did not give ROA and ROE - so these stats are taken from Yahoo.] ROA was - 3.40%. ROE was - 48.66%. Book Value per share was $6.33. Tier I Risk-Based Capital was 7.33%. Total Risk-Based Capital was 11.56%. Tier I Leverage Ratio was 5.02%. Net interest income was $117.812 million compared to $181.624 million in Q-08. The Net interest margin was 2.04% compared to 2.37% in Q4-08. Total interest earning assets of $23.679 billion produced income of $286.830 million at an average yield of 4.89%. Total interest bearing liabilities of $20.676 billion produced expenses of $166.924 million at an average yield of 3.27%. The cost of liabilities was high due to CNB had $9.134 billion in Time deposits at an average yield costing 3.71%; $2.013 billion in Brokered time deposits at an average yield costing 3.00%; and $4.013 billion in Long-term debt at an average yield costing 4.99%. Total noninterest income was $49.612 million compared with $57.747 million in Q1-08. CNB had Securities gains of $6.075 million in Q1-08 compared to losses of $0.837 million in Q1-09. Net charge-offs were $132 million [3.72% annualized of average loans], down from $415 million [11.15%] in Q4-08. Nonperforming loans were $881 million at March 31, 2009, an increase of $347 million from December 31, 2008. The ratio of nonperforming loans to net loans at March 31, 2009 was 6.24%, compared to 3.67% at December 31, 2008. Total nonperforming loans of $880.762 billion plus OREO of $182.690 million plus Nonaccrual loans held for sale of $21.988 million resulted in Total nonperforming assets of $1,085.440 million. With total assetts of $ 26.440 billioin, NPAs were 4.10% of assets. CYN Reports $0.04 vs. $0.91 in Q1-08 Globe Newswire 4-23 Los Angeles' City National reported for Q1-09 net income of $7.5 million and net income available to common shareholders of $2.0 million [$0.04/share] which reflects the dividend paid on preferred stock to the US Treasury. Excluding after-tax charges of $11.2 million [$0.23/share] for securities losses, net income available to common shareholders amounted to $13.2 million [$0.27/share]. Q1-08's net income was $44.0 million [$0.91/share]. ROA was 0.18%. ROE was 0.48%. Book Value was $34.52. Total risk-based capital ratio was 13.4%. Tier 1 risk-based capital ratio was 11.7%. Tier 1 leverage ratio was 10.4%. The period-end ratio of total equity to total assets was 12.29%. FTE net interest income was $148.4 million, down 3% from both the Q1-08 and Q4-08. The net interest margin averaged 4.00%, down 9 bps from Q4-08. CYN's average prime rate declined 81 bps to 3.25% from 4.06% in Q4-08. Lower funding costs and growth in noninterest-bearing deposits reduced the impact of the 46 bps decrease in the yield on earning assets. Total interest-earning assets of $15.033 billion produced income at an average yield of 4.67%. Total interest-bearing liabilities $8.107 billion produced expenses at an averaege yield of 1.23% while CYN had oninterest-bearing deposits of $5.983 billion. Noninterest income was $47.3 million, down 41% from Q1-08. The change was due primarily to a decline in wealth management fees, as well as a $15.0 million charge for securities losses and impairments related to bank income notes, equity securities and mutual funds. CNY now holds just $2.5 million of income notes and $11.0 million of equity securities and mutual funds. Together, they equal 0.5% of CYN's $3.0 billion securities portfolio. At March 31, 2009, nonaccrual loans totaled $313.6 million, up from $211.1 million at 12-31-08 and $113.6 million at 3-31-08. Total nonperforming assets (nonaccrual loans + OREO) were $326.3 million [2.65% of total loans + OREO] compared with $222.5 million [1.79%] at the end of 2008 and $117.4 million [1.00%] at 3-31-08. With total assets of $16.933 billion, NPAs were 1.92% of assets. Net loan charge-offs were $33.6 million [1.10% of average total loans and leases on an annualized basis] up from $24.7 million [0.79%] in Q4-09 and $12.1 million [0.42%] in Q1-08. EWBC Reports - $0.50 vs. $0.08 in Q1-08 Business Wire 4-28 Pasadena, California's East West Bancorp reported for Q1-09 a net loss of $22.466 million [- $0.50/share] compared with a gain of $5.044 million [$.08/share] in Q1-08. ROA was - 0.72%. ROE was - 11.69%. Book Value per share was $16.60. Tier 1 risk-based capital ratio was 13.67%. Total risk-based capital ratio was 15.65%. Tier 1 leverage capital ratio was 11.47%. Net interest income totaled $79.7 million, a 4% increase over Q4-08. The net interest margin was 2.74%, an increase from 2.72% in Q4-08. The yield on earning assets was 4.98% compared with 6.81% in Q1-08. the cost of deposits was 1.81% compared with 2.86% in Q1-08. Total interest-earning assets of $11.802 billion produced income of $145.013 million at an average yield of 4.98%. Total interest-bearing liabilities of $9.596 billion prodcued expenses of $65.242 million at an average yield of 2.76%. Earning assets included $8.197 billion in loans and $2.723 billion in securities. Noninterest income totaled $13.8 million, compared to a loss of $863 thousand in Q4-08. In Q1-09 EXBC recorded a $200 thousand write-down of for OTTI on investment securities. Total net charge-offs were $59.569 million compared with $25.383 million in Q1-08. Nonperforming assets were $303.8 million [2.42% of total assets] included nonaccrual loans totaling $248.0 million, other real estate owned totaling $38.6 million and loans modified or restructured totaling $17.2 million. FHN Reports $0.06 vs. - $0.06 in Q1-08 Business Wire 4-17 First Horizon reported Net income of $82.8xx [$0.39/share] compared to - $7.920 million [a loss of $0.06/share] in Q1-08. Visa's IPO resulted in $95.9 million benefit to pre-tax earnings in Q1-08. ROA was - 0.87%. ROE was - 13.44%. Book Value per share at the end of Q1-09 was $11.46. Tier 1 capital ratio was 15.0%. Tangible common equity to tangible assets ratio was 7.1%. Net interest income was $196.587 million compared to $228.092 million in Q1-08. The net interest margin was 2.89%. Noninterest income was $407.871 million compared to $383.130 million in Q1-08. The net charge-off ratio was 397 bps compared to 361 bps in Q4-08 as net charge-offs increased to $208.3 million from $191.2 million in Q4-08. Net charge-offs were driven by weakness in the residential commercial real estate portfolio, in commercial and industrial loans affected by the housing market and in the consumer real estate portfolios. The nonperforming asset ratio increased to 598 bps from 538 bps in Q4-08; however, the 8.1% increase in nonperforming assets was the lowest in eight quarters. The commercial loan portfolio accounted for the majority of this linked-quarter increase. FNB Reports $0.16 vs. $0.27 in Q1-08 PRNewswire 4-23 Hermitage, Pa's F.N.B. Corporation reported for Q1-09 Net income available to common shareholders of $14.3 million [$0.16/share] compared to $16.5 million [$0.27/share] for Q1-08. ROA was 0.87%. ROE was 6.22%. Book value per share was $10.37. The tangible common equity ratio was 4.54%. The leverage capital ratio was 8.67%. The tier 1 risk-based capital ratio was 11.1%. The total risk-based capital ratio was 12.5%. Net interest income totaled $64.1 million, a decrease of $4.3 million from Q4-08. This decline was due primarily to a narrowing of the net interest margin and fewer days in the quarter. The net interest margin equaled 3.70% compared to 3.88% in Q4-08 and 3.73% in Q1-08. The narrowing of 18 bps from Q4-08 was driven by loan yields declining faster than deposit rates. Q1-09's Net interest income increased 30.9% compared Q1-08, reflecting a combination of organic growth and the 2008 acquisitions of Omega Financial and Iron and Glass Bancorp. Non-interest income totaled $28.2 million compared to $8.3 million in Q4-08 and $22.2 million in Q1-08. Q4-08 included $20.1 million in non-cash impairment charges related to certain investments, while Q1-09 results included a $0.2 million OTTI charge for bank stocks. Excluding the impairment charges, non-interest income was essentially flat as seasonally lower service charges and securities commissions and fees were offset by increased contingency fees in the insurance business. In total, non-interest income represented 30% of net revenue for Q1-09. Net loan charge-offs totaled $2.3 million [0.17% annualized of average loans] compared to $5.8 million [0.45%] for Q4-08. Non-accrual loans of $147.479 million [$29.949 million in Q1-08] plus Restructured loans of $4.424 million [$3.628 million] plus OREO of $12.232 million [$8.538 million] plus Non-performing investments [a non-banking affiliate] of $7.288 million [$0] resulted in Non-performing assets of $171.423 million [$42.115 million in Q1-08]. Non-performing loans / total loans was 2.62% compared with 0.76% in Q1-08. With Total assets of $8.455 billion, NPAs were 2.02% of assets. The Florida loan portfolio totaled $302 million at March 31, 2009 (5% of the total loan portfolio). Florida's non-performing loans and OREO totaled $96.3 million at March 31, 2009, or approximately 59% of FNB's total non-performing loans and OREO. GBCI Reports $0.26 vs. $0.32 in Q1-08 PRNewswire 4-23 Kalispell, Montana's Glacier Bancorp reported for Q1-09 net earnings of $15.779 million [$0.26/share] compared with $17.399 million [$0.32/share] for Q1-08. ROA was 1.15%. ROE was 9.27%. Book value per share was $11.09. Stockholders' equity to total assets ratio was 12.22%. Tangible stock-holders' equity to total tangible assets ratio was 9.65%. Net interest income was $60.378 million compared with $48.629 million in Q1-08. FTE net interest margin was 4.92%. Total Earning Assets of $5.169 billion produced income of $75.532 million at an average yield of 5.84%. Total Interest Bearing Liabilities of $4.109 billion produced expenses of $15.154 million at an average yield of 1.50%. Total non-interest income was $17.377 million compared with $16.262 million in Q1-08. Fee income fell to $10.179 million from $10.961 million in Q1-08 while the Gain on sale of loans rose to $6.150 million from $3.880 million in Q1-08. Non-accrual loans of $92.288 million [$21.747 million in Q1-08] plus Accruing Loans 90+ days overdue of $4.439 million [$4.717 million in Q1-08] plus OREO of $18.985 million [$2.098 million in Q1-08] resulted in Total non-performing assets of $115.712 million [$28.562 million in Q1-08]. NPAs assets as a percentage of total bank assets was 1.97% compared with 0.57% in Q1-08. Net charge-offs as a percentage of total loans was 0.209% compared with 0.006% in Q1-08. HBHC Reports $0.44 vs. $0.63 in Q1-08 Globe Newswire 4-21 Gulfport, Mississippi's Hancock Holding Company announced Q1-09 net income of $14.0 million [$0.44/share] compared with $20.0 million [$0.63/share] in Q1-08. ROA was 0.79%. ROE was 9.12%. Book value per share was $19.66. Leverage (Tier I) ratio was 7.85%. Tangible common equity ratio was 7.92%. FTE Net interest income was $56.390 million compared to $52.882 million in Q1-08 while the Provision for loan losses was $8.342 million compared with $8.818 million in Q1-08. Total earning assets of $6.474 billion produced income of $84.392 million at an average yield of 5.26%. Total interest-bearing liabilities of $5.232 billion produced an expense of $28.002 million at an average yield of 2.05%. The FTE net interest margin was 3.50% compared with 3.80% in Q1-08. Noninterest income [excluding securities transactions] was $29.055 million compared with $30.769 million in Q1-08. Trust fees fell to $3.327 million from $4.176 million and Insurance fees fell to $3.452 million from $4.340 million while Secondary mortgage market operations rose to $1.158 million from $0.778 million in Q1-08. Non-accrual loans were $38.327 million compared to $12.983 million in Q1-08 while Foreclosed assets were $5.946 million compared to $3.619 million in Q1-08. Total non-performing assets were $44.273 million [1.04% of loans + OREO] compared to $16.602 million [0.46%] in Q1-08. With Total assets of $7.097 billion, NPAs were 0.62% of assets. Net charge-offs were $7.1 million [0.67% of average loans] down from the $12.6 million [1.20%] reported for Q4-08. PCBC Reports - $0.17 vs. $1.56 in Q1-08 Business Wire 4-30 Santa Barbara, California's Pacific Capital Bancorp reported for Q1-09 a net loss of $7.9 million [- $0.17/share] compared to net income of $72.5 million [$1.56/share] in Q1-08. The Core Bank had a loss of $69.8 million while the Refund Anticipation Loan (RAL) and Refund Transfer (RT) programs had income of $55.0 million. [PCBC did not give ROA and ROE - so these stats are taken from Yahoo.] ROA was - 0.27% while ROE was - 3.12%. Book value per share was $12.88. Tier 1 leverage ratio was 6.8%. Total risk based capital ratios was 14.1%. FTE Net interest income was $189.782 million compared with $162.202 million in Q1-08. The FTE Net interest margin was 8.09% compared with 9.00% in Q1-08. Total interest-earning assets of $9.511 billion produced income of $243.053 million at an average yield of $10.36%. The RAL and RT loans combined with other Consumer loans to make $1.413 billion producing income of $155.957 million at an average yield of 44.78%. Total interest-bearing liabilities of $7.986 billion produced expenses of $53.271 million at an average yield of 2.71%. Total non-interest income was $76.093 million compared with $125.314 million in Q1-08. Gain on sale of RALs was zero in Q1-09 while Q1-08 contained gains of $44.580 million. Total non-performing assets were $271.1 million at March 31, 2009, compared to $241.5 million at December 31, 2008. NPAs/total assets ratio was 3.41% compared with 2.65% at the end of 2008. Net charge-offs were $73.4 million [5.18% of average loans] compared with $50.9 million [3.50%] in Q4-08. PRSP Reports $0.55 vs. $0.52 in Q1-08 PRNewswire 4-17 Prosperity Bancshares reported net income of $25.478 million [$0.55/share] compared with $22.938 million [$0.52/share] for Q1-08. ROA was 1.15% while ROE was 8.02%. Book value per share was $27.78. Tier 1 risk-based capital was 10.44%. Total risk-based capital was 11.37%. Tier 1 leverage capital was 5.48%. Net interest income before provision for credit losses was $74.078 million compared with $51.995 million during Q1-08. The increase was attributable primarily to a 45.2% increase in average earning assets. FTE net interest margin decreased to 3.98% compared with 4.03% for Q1-08. The decrease was due to lower deposit pricing and the effect on the full quarter of the assets purchased and the deposits assumed during Q4-08 from the FDIC as receiver of Franklin Bank. Total interest earning assets of $7.627 billion produced income of $105.566 million at an avereage yield of 5.61%. Total interest bearing liabilities of $6.044 billion produced expenses of $31.488 million at an average yield of 2.11%. Non-interest income increased 18.4% to $15.017 million compared with $12.679 million for Q1-08 due to an increase in service charges on deposit accounts related to accounts assumed from Franklin Bank and 1st Choice. Non-performing assets totaled $12.525 million [0.16% of average earning assets, 0.36% of loans & OREO, and 0.14% of total assets] at March 31, 2009 compared with $17.554 million [0.33% of average earning assets] at March 31, 2008. Net charge offs were $3.857 million [0.11% of average loans] for the three months ended March 31, 2009 and $1.643 million for the three months ended March 31, 2008. From the conference call: NPAs were comprised of $2.964 million in loans, $0.427 million in repossessed assets, and $9.134 million in OREO. NPAs contained 104 credits with average balance of $120 thousand. $4 million of OREO is under contract - with no guarantee that these will close. PRSP has a very granulated loan portfolio, which is an attribute that one would want in a tough economy. The average loan size was $100 thousand [$146 thousand average at 2008's year end] while commercial loans averaged $385 thousand and [the largest sized] construction loan average size was $254,000. PRSP has only 10 Credits [loans] above $10 million and less than 30 above $5 million. We do not have any big box credits like Circuit City. We have very few shopping centers. PRSP has only $150 million in 'retail' loans. PRSP's loans were 42% fixed loans, 27% float rate loans, and 31% variable loans that reset at specific intervals. PRSP's Commercial real estate portfolio is predominantly owner occupied properties and is low on spec projects. LTV's on commercial real estate loans start at 80% and go down as they mature. And several loans on our books are three to five years old. Could your shrink the balance sheet this year? PRSP: Franklin deposits contained a lot of CDs from yield chasers - hot money that could leave or they will reprice at lower rates. 90% of the Franklin losses in deposits have been in high priced CDs. But there is not a lot of competition from other banks on rates. So deposits will probably fall some along with smaller increases in loans, which will shrink [Loan production was $64 million/quarter compared to $77 million in Q4-08]. There has already been a $23 million shrink in construction loans. But good customers are seeking stronger banks - which will help us. Deposit service charges on deposit accounts are down $1 million - why? PRSP: It is a seasonal thing. There is usually a lower amount of NSF fees in Q1. Franklin had a different policy - and turned an over-draft into a loan - which we do not do. What loan segment are you watching most closely? PRSP: You worry about everything. First and foremost is construction and land development. That is where the slowness is. It is not as bad in Texas as it is nationally. Less than half of the NPA credits where there last quarter. There are buyers at the court house on 1-4 family stuff - it turns quickly and we are in good shape. We are taking a 10% to 15% loss on completed properties. Is there a problem with foreclosure of raw property? PRSP: We have not foreclosed on much in land development. Is the decline in energy prices affecting commercial rental rates? PRSP: $50/barrel is still a good price. Rig count is down and some service industries have reduced staff. But most in the business has lived through the 80s. They never hired too many and they are afraid to let very many go. Commercial real estate rates on some rental property we were renting went from $28 psf went to $38 psf. If crude has stayed over $100, then Texas would have gone into a real estate bubble. So $50 a barrel is a good price to us. On the Texas economy - we expect to see a better second half if the nation also has a bounce back. The Texas economy is the 2nd largest in nation and 12 largest in the world. Some 56 of the Fortune 500 located in Texas - the largest of any state. Economists forecast a 2.8% fall in Texas employment and a rise to 8.0% unemployment is projected. PRSP will increase loan loss reserves due to this forecast. RF Reports $0.04 vs. $0.48 in Q1-08 Business Wire 4-21 Birmingham, Alabama's Regions Financial reported for Q1-09 profit available to common shareholders of $26 million [$0.04/share] compared with $337 million [$0.48/share] in Q1-08. ROA was 0.07%. ROE was 1.43%. Book Value was $19.43. Stockholders' equity to total assets ratio was 11.84%. Tangible common stockholders' equity to tangible assets ratio was 5.41%. Tangible common stockholders' equity to risk-weighted assets ratio was 6.48%. Tier 1 Capital was 10.37%. Total Risk-Based Capital was 14.53%. Net interest income was $809 million compared with $1.018 billion in Q1-08 while the Net interest income after provision for loan losses was $384 million compared with $837 million in Q1-08. Total interest-earning assets of $125.692 billion produced income of $1.387 billion at an average yield of 4.47%. Total interest-bearing liabilities of $104.521 billion produce expenses of $0.570 billion at an average yield of 2.21%. FTE net interest margin was 2.64%. Total non-interest income was $1.066 billion compared with $0.908 billion in Q1-08. Q1-09 contained one time 'SILO termination gains' of $323 million. But the unwinding of SILO leveraged lease transactions had little impact to net income. The accounting results in a large increase in non-interest revenue, but created offsetting taxes of $315 million. Non-accrual loans of $1.641 billion plus Foreclosed properties of $294 million plus NPAs held for sale of $393 million resulted in Non-performing assets of $2.328 billion. Non-performing assets (including loans 90 days past due) were 3.24% of loans + OREO. With total assets of $141.980 billion, NPAs were 1.64% of asssets. Net charge-offs of $390 million were 1.64% of average loans. TRMK Reports $0.41 vs. $0.46 Q1-08 Business Wire 4-28 Jackson, Mississippi's Trustmark Corporation reported for Q1-09 net income available to common shareholders of $23.359 million [$0.41/share] compared with $26.179 million [$.46/share]. ROA was 1.10%. ROE was 9.01%. Book Value was $17.34. Tangible equity/tangible assets ratio was 9.37%. Tangible common equity/tangible assets ratio was 7.20%. Tier 1 leverage ratio was 10.17%. Tier 1 risk-based capital ratio was 13.34%. Total risk-based capital ratio was 15.28%. FTE Net interest income was $90.946 million compared with $77.070 million in Q1-08. With the FTE yield on earning assets at 5.34% and the cost of interest paying liabilities at 1.16%, The FTE Net interest margin was 4.18%. Total noninterest income was $43.004 million compared with $48.516 million in Q1-08. Insurance commissions fell to $7.422 million from $8.256 million in Q1-08. Wealth management income fell to $5.555 million from $7.198 million in Q1-08 Total nonaccrual loans of $134.503 million [$77.994 million at the end of Q1-08] plus OREO of $42.135 million [$9.588 milion] resulted in Total nonperforming assets of $176.638 million [$87.582 million in Q1-08]. Total nonaccrual loans increased $20.5 million from Q4-08 due primarily to Florida residential real estate loans which were reserved for or written-down to net realizable value. OREO increased $3.6 million. NPAs increased $24.0 million to represent 2.53% of total loans and other real estate. With Total assets of $9.778 billion, NPAs were 1.81% of assets. Net charge-offs totaled $11.4 million, or 0.66% of average loans, principally resulting from Florida residential real estate. UCBH Reports - $0.78 vs. $0.xx in Q1-08 Business Wire 4-23 San Francisco's UCBH Holdings reported for Q1-09 a net loss of $93.7 million [$0.78/share]. The Q1-09 loss reflects a loan loss provision of $178.5 million, $12.6 million in NPA dispositions, and a $5.2 million write-down for CMBS securities and GSE preferred stock investments, offset by $9.5 million in gains from sales of available-for-sale securities and a tax benefit of $83.9 million. ROA was -2.56%. ROE was -24.73%. Book Value was $7.86. Tier 1 Leverage Ratio was 9.08%. Tier 1 Risk-based Capital Ratio was 12.18%. Total Risk-based Capital Ratio was 14.73%. Tangible Equity Ratio was 6.80%. Net interest income [before provision] was $69.8 million compared with $83.1 million in Q1-08. The FTE net interest margin was 2.35%, a 69 bps decrease from the 3.04% for Q1-08. Total interest-earning assets of $12.533 billion produced income of $150.199 million at an average yield of 4.86%. Total interest-bearing liabilities of $11.146 billion produced expenses of $80.398 million at an average yield of 2.93%. Of UBCH's Total interest-bearing deposits of $8.158 billion, $6.306 billion were from Time deposits that had an average yield of 3.03%, resulting in an atypically high cost of liabilities. Noninterest income was $7.3 million compared with $5.0 million Q1-08. Included in Q1-09 were $9.5 million in gains from sales of securities, offset by a $5.2 million OTTI related to a CMBS and GSE preferred stock investments. Nonperforming assets were $700.8 million [5.22% of total assets] at March 31, 2009, compared with $530.8 million [3.93% of total assets] at December 31, 2008. The increase reflected further deterioration in the appraised values of certain residential construction loans and commercial real estate loans. Sales of nonperforming loans and OREO totaled $93.7 million, primarily comprised of residential construction properties located in distressed areas in California. Net loan charge-offs were $131.7 million [6.13% of loans, annualized] compared with $43.6 million [1.98%] in Q4-08, and $12.3 million [0.62%] in Q1-08. UMBF Reports $0.55 vs. $0.78 in Q1-08 Business Wire 4-21 Kansas City's UMB Financial reported Q1-09 earnings of $22.6 million[$0.55/share] compared with $32.4 million [$0.78/share] in Q1-08. Q1-08 included a gain of $8.875 million from the Visa IPO. ROA was 0.89%. ROE was 9.23%. Book Value was $24.19. Tier 1 Capital ratio was 13.9%. Net interest income was $75.209 million compared with $64.374 million in Q1-08. this increase was due primarily to a higher volume of average earning assets. Average earning assets increased by $1.7 billion [21.7%]. Average loans increased $333.3 million [8.2%] while total securities increased $1.4 billion [42.8%]. Net interest margin was 3.39% compared with 3.50% in Q1-08. Total earning assets of $9.478 billion produced income of $90.082 million at an average yield of 4.02%. Total interest-bearing liabilities of $6.908 billion produced an expense of $14.873 million at an average yield of 0.87%. Noninterest Income was $68.867 million compared with $75.732 million in Q1-08. Trust and securities processing income decreased $6.3 million [20.3%] primarily due to a $2.2 million [25.2%] decrease in fee income from UMB Scout Funds and a $3.5 million [29.2%] decrease in fund administration and custody services. Net loan charge-offs were $4.292 million [0.40% of average loans]. Nonperforming Assets to total Assets ratio was 0.16%. Nonaccrual and restructured loans were $14.648 million [0.34% of loans]. UMPQ Reports - $0.23 vs. $0.41 in Q1-08 Business Wire 4-16 Portland, Oregon's Umpqua Holdings announced for Q1-09 a net loss applicable to common shareholders was $13.8 million [- $0.23/share] compared to net income of $24.7 million [$0.41/share] for Q1-08. [Analysts polled by Thomson Reuters, on average, had expected UMPQ to break even.] ROA was - 0.64%. ROE was - 4.35%. Book value per share was $21.14. Total regulatory risk based capital was 14.32% and the Tangible common equity ratio was 6.42%. Net interest income was $75.413 million [$104.376 million income minus $28.963 million in expense] compared with $70.020 million [$115.441 million minus $45.421 million] in Q1-08 while the Provision for loan and lease losses was $51.400 million compared with $15.132 million in Q1-08. FTE Net interest margin was 4.07%. Interest reversals on new non-accrual loans were $1.0 million, or 5 bps on the net interest margin. The cost of interest bearing deposits was 1.82% while the cost of total deposits was 1.48%. Total yield on earning assets was 5.61% compared with 6.53% in Q1-09. Total cost of interest bearing liabilities was 1.99% compared with 3.21% in Q1-08. Total non-interest income was $15.517 million compared with $29.594 million in Q1-08 [the one time gain from the Visa IPO contributed $12.633 million to Q1-08]. UMPQ's Net gain on investment securities was only $35 thousand compared with $3.901 million in Q1-08. Non-performing assets were $164.2 million [1.87% of total assets or 2.16% of total loans] compared to $161.3 million [1.88%] as of December 31, 2008. Of this amount, $13.8 million represented loans past due greater than 90 days and still accruing interest, $117.6 million represented non-accrual loans, and $32.8 million was OREO. During Q1-09 a loss on OREO of $2.3 million was recognized. Total net charge-offs were $55.2 million [3.65% of average loans on an annualized basis] compared with $13.5 million [1.94%] in Q1-09. WABC Reports $1.80 vs. $0.92 in Q1-08 Business Wire 4-17 San Rafael, California's Westamerica Bancorporation reported net income of $52.2 million [$1.80/share] compared to $26.8 million [$0.92/share] for Q1-07. Q1-08 results include benefits from Visa’s IPO of $4.7 million [$0.16/share] while Q1-09 results included a FAS 141R gain due to the County Bank acquisition where assets purchased exceeded the estimated fair value of liabilities assumed and a one time refund of federal income taxes related to 2004. The and tax refund combined to increase $1.00/share. ROA was 4.24%. ROE was 48.0%. Book Value was $15.73. Tier I Capital/Total Assets was 7.27%. Tier I Capital/Risk-Adjusted Assets ratio was 10.13%. FTE Net interest income rose to $59.4 million from $48.0 million for Q1-08 due to the acquisition of County Bank on 2-6-09. The FTE net interest margin was 5.35% compared to 4.79% in Q1-08. The provision for loan losses was $1.8 million compared to $600 thousand for Q1-08. Total Earning Assets of $4.475 billion produced FTE income of $64.192 million at an average yield of 5.79%. Total Interest-Bearing Liabilities of $3.156 billion produced expenses of $4.833 million at an average yield of 0.62%. Noninterest income totaled $15.1 million, excluding the FAS 141R gain, while Noninterest income in Q1-08 totaled $13.7 million, excluding $5.7 million in securities gains. Deposit service charges rose following the County Bank acquisition. Total Nonperforming Assets were $77.829 million while Total Assets $5.428865 billion resulting in NPAs of 1.43% of assets. WTNY Reports - $0.22 vs. $0.45 in Q1-08 Globe Newswire 4-23 New Orleans' Whitney Holding Corporation reported for Q1-09 a net loss of $11.1 million with earning available to common share of $15.2 million [- $0.22/share] compared with income of $29.9 million [$0.45/share] for Q1-08. ROA was - 0.37%. ROE was - 4.96%. Book value per share was $18.22. The regulatory leverage ratio was 9.47%. The tangible common equity ratio was 6.68%. FTE Net interest income was $112.924 million compared with $120.902 million in Q4-08 and $114.815 million in Q1-08. The fewer days in the current period would have caused a reduction of approximately $1.8 million. Average earning assets grew 3%, while FTE net interest margin compressed by 36 bps to 4.13% from 4.49%. Q4-08 NIM benefited an estimated 30 bps from the abnormally wide spreads between LIBOR rates and other benchmark rates used to reset variable-rate loans. This benefit was reduced as the LIBOR spreads trended closer to historical relationships in 2009. The rates on approximately 30% of the loan portfolio at March 31, 2009 vary based on LIBOR benchmarks. Rate floors on approximately 40% of our variable rate loans partially offset the impact of the reduced spreads and overall lower rate environment. Demand deposits comprised 35% of total average deposits and funded approximately 28% of average earning assets for Q1-09 and the percentage of funding from all noninterest-bearing sources totaled 33%, up from 31% in Q4-08. Higher-cost interest-bearing funds, which include time deposits and borrowings, funded 35% of average earning assets in Q1-09, down from 39% in Q4-08. Total interest-earning assets had an average yield of 4.91% while Total interest-bearing liabilities had an average yield of 1.17%. Noninterest income was $29.266 million compared to $27.050 million in Q4-08 and $28.476 million in Q1-08. Total nonperforming loans of $366.249 million [$139.371 million in Q1-08] plus OREO of $38.781 million [$11.980 million] resulted in Total nonperforming assets of $405.030 million [$151.351 million]. NPAs to loans + OREO was 4.50% compared to 3.61% at the end of Q4-08 and 1.96% at the end of Q1-08. With Total assets of $12.020 billion, NPAs were 3.37% of assets. As the deterioration in residential real estate values continued, mainly in Florida, WTNY's criticized and impaired loans increased, and net charge-offs increased. Annualized net charge-offs to average loans ratio was 1.41% compared with 0.91% in Q4-08 and 0.53% in Q1-08. ZION Reports - $7.29 vs. $0.97 in Q1-08 PRNewswire 4-20 Salt Lake City's Zions Bancorporation reported for Q1-09 a loss of $832.200 million [- $7.29/share] compared with earnings of $104,296 million [$0.97/share] in Q1-08. The Provision for loan losses increased to $297.624 million from $92.282 million; Noninterest income decreased to a loss of $111.561 million from a profit of $111.000 million; and ZION took an Impairment loss on goodwill of $633.992 million related to ZION's purchase of Amegy Bank. ROA was - 5.90%. ROE was - 68.42%. Book value per share was $34.38. The tangible common equity ratio was 5.26% Tier 1 risk-based capital ratio was 9.33%. Total risk-based capital ratio was 13.23%. Net interest income was $474.8 million compared to $508.4 million for Q4-08, and $486.5 million for Q1-08. The net interest margin was 3.93% compared to 4.20% for Q4-08 and 4.23% for Q1-08. The spread between loan yields and deposit rates remained essentially unchanged from Q4. The decreased NIM compared to Q4-08 was driven primarily by an increase in ZION's liquidity position accompanied by a significant decrease in yields on short-term investments, and by the increase in nonaccrual loans. On average during the quarter, ZION had approximately $3 billion of short-term investments including approximately $1 billion held by the Parent. Total interest-earning assets of $49.581 billion produced FTE income of $645.597 million at an average yield of 5.28%. Total interest-bearing liabilities of $38.317 billion produced expenses of $164.927 million at an average yield of 1.75%. Total noninterest income was - $111.6 million compared to - $82.3 million for Q4-08 and $111.0 million for Q1-08. The amount for Q1-09 includes an impairment and valuation losses on securities of $249.4 million compared to $204.3 million for Q4-08. Nonaccrual loans of $1.421 billion plus OREO of $226.634 million plus Restructured loans of $15.333 million resulted in Nonperforming assets of $1.770 billion ($1.663 billion excluding FDIC-supported assets) compared to $1.140 billion at 12-31-08 and $434.3 million at 3-31-08. The increase related mainly to commercial real estate loans primarily in Nevada, Arizona and Texas and to commercial and industrial loans primarily in Utah. The ratio of nonperforming assets excluding FDIC-supported assets to net loans and leases and OREO was 4.00% at March 31, 2009 compared to 2.71% at December 31, 2008 and 1.09% at March 31, 2008. With total assets of $54.630 billion, NPAs were 3.24% of assets. Net loan and lease charge-offs were $151.7 million [1.47% annualized of average loans excluding FDIC-supported assets] compared with $179.7 million [1.72%] for Q4-08 and $50.8 million [0.52%] for Q1-08. Ratings & Dividend Changes - April On 4-15 CBSH declared a dividend of $0.24/share payable June 26, 2009, to stockholders of record at the close of business on June 9, 2009. On 4-16 RF declared a reduced dividend of dividend $0.01/share [prior div was $0.10 and Q4-08's div was $.34] payable July 1, 2009, to stockholders of record as of June 17, 2009. On 4-21 UMBF declared a dividend of $0.175/share payable on July 1, 2009 to shareholders of record at the close of business on June 11, 2009. On 4-23 CATY declared a reduce dividend of $0.08/share [prior div was $0.105/share] payable May 14, 2009, to stockholders of record at the close of business on May 4, 2009. On 4-23 CYN declared a reduced dividend of $0.10/share [down from $0.25/share] payable on May 20, 2009 to stockholders of record on May 6, 2009. On 4-23 WABC declared a dividend of $0.35/share [prior div was $0.36] payable 5-15-09 to shareholders of record at the close of business on 5-4-09. On 4-28 EWBC declared a reduced dividend of $0.01/share payable on or about May 26, 2009 to shareholders of record on May 18, 2009. On 4-28 TRMK declared a quarterly dividend of $0.23/share payable June 15, 2009, to shareholders of record on June 1, 2009. On 4-01 Fox Pitt Initiated TRMK at In Line. On 4-02 FTN Equity Capital Initiated coverage on RF at Neutral. On 4-06 BMO Capital Markets Downgraded CYN from Market Perform to Underperform. On 4-07 Oppenheimer Downgrade CFR from Perform to Underperform and Sterne Agee Initiated CBSH at Neutral. On 4-08 RBC Capital Marktes Initiated coverage on WTNY at Sector Perform. On 4-08 Soleil Initiated coverage on FHN and HBAN at Buy. On 4-09 Keefe Bruyette Downgraded FHN from Market Perform to Underperform and Downgraded RF from Outperform to Market Perform. On 4-20 Sterne Agee Downgraded FHN from Buy to Neutral. On 4-20 Raymond James initiated coverage of CFR at Market Perform. On 4-14 Moody's Investors Service downgraded the ratings of ZION's senior debt to B2. On 4-24 Sterne Agee Downgraded CYN from Neutral to Sell. On 4-24 Deutsche Securities Initiated FHN, RF and ZION at Hold. On 4-20 SunTrust Robinson Humphrey analyst Jennifer Demba upgraded ZION to "Buy" from "Neutral," saying the regional bank should be able to survive the credit crisis without additional capital. "Industry net interest margins are improving and Zions has a very strong core earnings stream to support high loan losses spread over the next few years," Demba wrote in a note to clients. Demba, who has a $24 target price on the stock, also revised her earnings estimates. She now expects a first-quarter loss of $1.71 per share, down from a prior estimate of a loss of $2.37 per share. Analysts polled by Thomson Reuters, on average, are expecting a loss of $1.77 per share. On 4-14 Moody's Investors Service downgraded the ratings of Trustmark and said the outlook is negative. Moody's cut the parent corporation's ratings by one notch to Baa1 from A3. Trustmark, which operates in Florida, Mississippi, Tennessee and Texas, had its long-term bank deposits rating cut to A3 from A2, and its bank financial strength rating cut to C from C+. TRMK's short-term ratings were lowered to Prime-2 from Prime-1. The ratings remain investment grade. Moody's said the downgrade and negative outlook reflects its view that TRMK's financial strength, particularly its capital levels and earnings generation, is likely to be pressured by deterioration in its commercial real estate portfolio. Commercial real estate exposure accounts for about three times Trustmark's tangible common equity, with construction lending comprising nearly 60% of the total. Moody's noted that Trustmark's commercial real estate lending is highly concentrated in Mississippi, where half of its related portfolio was originated. Nearly 20% of the portfolio is in Florida. Moody's said it had previously incorporated TRMK's real estate lending exposure into its ratings, but the sharp decline in real estate prices and anticipated deterioration in loan performance has led to considerably higher loss expectations in the segment, especially from construction and land development. While most of TRMK's commercial real estate losses to date stem from its construction portfolio in Florida, Moody's expects its other holdings will generate higher credit costs in the future because of the weak economy. Moody's also expects further losses from TRMK's Florida exposures. The downgrade was limited to one notch because Trustmark still has good capital and liquidity. On 4-29 Fox-Pitt Kelton upgraded its U.S. banking sector rating to "Marketweight" from "Underweight." The research firm initially placed an "Underweight" rating on the banking sector in April 2004. In a research note, Fox-Pitt Kelton said bank stocks typically bottom about two or three quarters before non-performing assets -- delinquent and defaulting loans -- peak. Fox-Pitt Kelton estimates that peak will occur around the end of 2009, meaning banks stocks bottoming in early March might have been the base ahead of sustained improvement in stock prices in the sector. Current valuation of bank stocks is also historically low, which provides good value for investors based on the still ongoing risk in the sector as the recession continues and loan losses mount. Despite the attractive valuation, the note goes on to say it is not good enough for aggressive buying of bank stocks. One wild card for the banking sector is the pending announcement of results from the government's "stress test" on 19 of the nation's largest financial firms. Fox-Pitt Kelton said it expects the results, due out next week, will be "more benign than expected and dilution-risk is already priced into relevant stocks." If banks need additional capital, they are likely to only to raise capital on an as-needed basis to minimize dilution to current shareholders. The government is also likely to support banks' capital positions by converting its preferred stock to common shares. Ratings & Dividend Changes - March On 3-12 Morgan Stanley cut Cullen/Frost Bankers To Underweight. On 3-12 Stifel Nicolaus Initiated WTNY at Hold. On 3-13 Sterne Agee Downgraded WABC from Hold to Sell and Upgraded ZION from Hold to Buy. On 3-17 Sun Trust Rbsn Humphrey Initiated GBCI at Buy. On 3-17 Fox Pitt Upgraded ZION from In Line to Outperform. On 3-18 RBC Capital Mkts Downgraded ZION from Outperform to Sector Perform. On 3-24 Sun Trust Rbsn Humphrey Downgraded GBCI from Buy to Neutral. On 3-25 Sterne Agee Initiated GBCI at Neutral and initiated UMPQ at sell. On 3-04 WTNY declared a dividend of $.01/share [down from $.20/share payable on April 1, 2009 to shareholders of record as of March 18, 2009. On 3-25 GBCI declared a dividend of $0.13/share payable on April 16, 2009, to owners of record on April 7, 2009. On 3-31 JMP Securities Initiated coverage of CATY, CYN, EWBC, PCBC, UCBH, UMPQ, WABC and ZION at Market Perform. On 3-12 UMPQ declared a dividend of $0.05/share payable on April 15, 2009, to shareholders of record as of March 31, 2009. On 2-19 UCBH declared a reduced dividend of $0.01/share payable on April 13, 2009, to stockholders of record as of the close of business on March 31, 2009. Home Page Factoids Previous Update |