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Yields below are based on the Q3-09 dividends. ASBC, CMA, FMBI, FMER, FULT, HBAN, MBFI, ONB, SNV, SUSQ and USB have reduced their Q2-09 divs - BBT and WL their Q3-09 divs. Price/book ratios are based on the Q2-09 book values. ASBC Reports - $0.19 for Q4-08 vs. + $0.37 in Q2-08 Business Wire 7-16 Green Bay's Associated Banc-Corp reported for Q2-09 a net loss available to common shareholders of $24.672 million [- $0.19/share] compared to income of $47.359 million [$0.37/share] for Q2-08. ROA was - 0.29% and ROE was - 2.40%. Book value was $18.49. Stockholders' equity / assets ratio was 11.97x%. Tangible common equity / tangible assets ratio was 6.09%. Tangible equity to tangible assets ratio was 8.30%. Net interest income was $179.1 million compared to $172.7 million for Q2-08. The net interest margin was 3.40% compared to 3.59% at 3-31-09 and 3.65% at 6-30-08. The lower NIM was due to an increase in the level of nonperforming loans along with lower loan balances and higher investment securities prepayments which were reinvested at lower spreads. These factors were partially offset by improved deposit pricing and higher spreads on new and renewed loans. Total earning assets of $21.847 billion produced income of $256.060 million at an average yield of 4.70% [compared to 5.82% in Q2-08]. Total interest-bearing liabilities of $18.125 billion produced expenses of $70.772 million at an average yield of 1.57% [compared to 2.53% in Q2-08]. Core fee-based revenue was $64.9 million compared to $61.4 million for Q1-09 and $68.5 million in Q2-08. Year-over-year reductions occurred in consumer fee-based revenue due to weaker consumer activity, and equity market declines resulted in lower asset management and brokerage revenue. Nonaccrual loans of $700.514 million plus Loans 90 or more days past due and still accruing of $19.785 million plus Restructured loans of $13.089 million resulted in non-performing loans of $733.388 million. NPLs plus OREO of $51.633 million resulted in total nonperforming assets of $785.021 million. Nonperforming loans / total loans ratio was 4.79% [compared to 1.79% as of 6-30-08] and Nonperforming assets were 3.27% of total assets [compared to 1.50% as of 6-30-08]. Net charge offs were $61.083 million. BBT Reports $0.20 vs. $0.78 in Q2-08 Business Wire 7-17 Winston-Salem's BB&T Corporation reported net income available to common shareholders of $121 million [$0.20/share] compared with $428 million [$.78/share] for Q2-08. Q2-09 results were reduced by a special assessment from the FDIC totaling $.07/share and accelerated amortization on the preferred stock (TARP money) totaling $.08/share, partially offset by gains on sales of securities and extinguishment of debt, which increased earnings by $0.06/share. On June 17, BB&T exited TARP. On May 13, BB&T issued 86.25 million shares of common stock at $20/share for net proceeds of $1.7 billion. ROA was 0.56%. ROE was 3.43%. Book value per share was $22.76. The tangible common equity ratio was 6.5%. The Tier 1 common ratio was 8.4%. The Tier 1 risk-based capital was 10.60%. The total risk-based capital ratio was 15.2%. BB&T's FTE net interest income totaled $1.167 billion compared to 1.090 billion for Q2-08. The net interest margin was 3.56% compared with 3.65% in Q2-08. Noninterest income was $993 million compared with $827 million in Q2-09. Nonperforming assets [$3.340 billion] were 2.19% of total assets compared to 1.92% at March 31. Annualized net charge-offs were 1.81% of average loans and leases, up from 1.58% in Q1-09 and .72% during Q2-08. The increase in net charge-offs largely resulted from further deterioration in housing-related portfolios, including mortgage, home equity and consumer real estate. In particular, BB&T's consumer real estate portfolio, which is composed of loans made to individuals to purchase developed lots, experienced significant deterioration in the quarter. CHCO Reports $0.64 vs. $0.83 in Q2-08 PRNewswire 7-29 Charleston, West Virginia's City Holding Company reported for Q2-09 net income of $10.1 million [$0.64/share] compared to $13.4 million [$0.83/share] in Q2-08. ROA was 1.55% compared with 2.14% in Q2-08. ROE was 14.12%. Book value was $18.24. Leverage Ratio was 9.47%, the Tier I Capital ratio was 12.63%, and the Total Risk-Based Capital ratio was 13.73%. FTE net interest income was $23.656 million compared with $25.678 million in Q2-08. The provision for loan losses was $2.150 million compared with $0.850 million in Q2-08. The net interest margin was 4.12%. Total interest-earning assets of $2.304 billion produced income of $33.183 million at an average yield of 5.78%. Total interest-bearing liabilities of $1.966 billion produced expenses of $9.527 million at an average yield of 1.94%. [The liability cost was high due to Time deposits of $1.018 billion making up a high percentage of liabilities - and they had an avereage yield of 3.26%.] Noninterest income was $14.287 million compared with $14.195 million in Q2-08. Net charge-offs of $3.155 million were 0.70% of average loans. Total non-performing loans of $21.668 million [$14.614 million in Q2-08] plus OREO pf $10.029 million [$6.485 million in Q2-08] resulted in Total non-performing assets of $31.697 million [1.76% of loans + OREO] compared with $21.099 million [1.20%] in Q2-08. With total assets of $2.626 billion, NPAs were 1.22% of assets. CMA Reports - $0.10 vs. $0.37 in Q1-08 PRNewswire 7-21 Dallas based but Detriot born Comerica reported for Q2-09 net income of $18 million compared to a gain of $57 million for Q2-08. After preferred dividends of $34 million, the net loss applicable to common stock was $16 million [- $0.10/share] compared to $0.37/share for Q2-08. Q2-09 included a $312 million provision for loan losses, compared to $170 million for Q2-08. ROA was 0.11%. ROE was - 1.25%. Book value per share was $32.70. Tier 1 capital ratio was 11.57%. Tangible common equity ratio was 7.55%. Tier 1 common ratio was 7.65%. Total risk-based capital ratio was 15.96%. Net interest income was $402 million compared with $442 million in Q2-08. The net interest margin was 2.73% compared with 2.91% in Q2-08. Noninterest income was $298 million compared to $223 million for Q1-09 and $242 million for Q2-08. Noninterest income in Q2-09 included $113 million of net securities gains, primarily from gains from sales of mortgage-backed government agency securities ($109 million) and from redemptions of auction-rate securities ($3 million), compared to net securities gains of $13 million in Q1-09. Nonperforming loans were $1.130 billion [$731 million in Q2-08] of CMA's $1.230 billion in Nonperforming assets {$748 million in Q2-08]. NPAs/Total loans and foreclosed property was 2.64% [1.44% in Q2-08]. With total assets of $63.630 billion, NPAs were 1.93% of assets. Net credit-related charge-offs were $248 million [2.08% of average total loans] compared to $157 million [1.26% of average total loans] for Q1-09, with the increases concentrated primarily in Leasing and Middle Market Banking in the Midwest and residential real estate development in Florida and Other markets. Net credit-related charge-offs in the Texas and Western markets were stable. CRBC Reports - $2.81 vs. - $2.53 in Q2-08 PRNewswire 7-23 Flint, Michigan's Citizens Republic Bancorp reported for Q2-09 a net loss of $347.4 million. After incorporating the $5.2 million dividend to the preferred shareholder, the net loss attributable to common shareholders of $352.6 million [- $2.81/share] compared with loss of $201.6 million [- $2.53/share] for Q2-08. ROA was - 10.91%. ROE was - 89.50%. Book value per share was $7.57 compared with $10.29. Tier 1 capital ratio was 11.83%. Total capital ratio was 13.93%. Tier 1 leverage ratio was 8.69%. Tangible common equity to tangible assets ratio was 5.09x%. Tangible equity to tangible assets ratio was 7.34%. Net interest income was $75.601 million compared with $87.615 million for Q2-08. The provision for loan losses was $199.962 million, compared with $74.480 million for Q2-08. Income [or loss] after provision was - $24.361 million compared with $13.135 million in Q2-08. Net interest margin was 2.73% compared with 3.11% for Q2-08. Total earning assets of $11.711 billion produced income of $142.132 million at an average yield of 5.01%. Total interest-bearing liabilities of $9.846 billion produced expenses of $66.531 million at an average yield of 2.71%. Total liability costs were high due to CRBC having Time deposits of $4.367 billion at an average yield of 3.52% and Long-term debt of $2.058 billion at an average yield of 4.86%. Noninterest income was $21.0 million, an increase of $1.7 million or 9.0% over Q1-09 and a decrease of $6.1 million or 22.5% from Q2-08. Nonperfroming Portfolio Loans of $495.7 million plus Nonperforming Held for Sale of $54.3 million plus OREO of $54.7 million resulted in Total Nonperforming Assets of $604.7 million. With Total assets of $12.288 billion, NPAs were 4.92% of assets. Total Net Charge-offs were $49.2 million [2.30% of loans] compared with $36.7 million [1.67% in Q1-09] and $69.3 million [2.93%] in Q2-08. FITB Reports $1.15 vs. - $0.37 in Q2-08 PRNewswire 7-23 Cincinnati, Ohio's Fifth Third Bancorp reported for Q2-09 net income of $882 million or $856 million available to common shareholders [$1.15/share] compared with a loss of $202 million [- $0.37/share] in Q2-08. ROA was 3.05%. Q2-09 net income included a gain of $1.055 billion from the sale of its processing business. But the special FDIC deposit insurance fund assessment decreased net income by $36 million. Q2-09 included other benefits that boost income by $101 million [$0.18/share]. These items included a tax benefit related bank-owned life insurance policies, and a related charge due to our agreement with the IRS to settle all of FITB's disputed leveraged leases for all open years, securities losses, and severance expense. ROE was 41.2%. Book value per share was $12.71. Tier 1 common ratio equity was 7.00%, Tier 1 ratio was 12.9%. Tier 1 capital ratio was 12.90%. Total risk-based capital ratio was 16.96%. Tier I leverage ratio was 12.17%. FTE Net interest income was $836 million compared with $744 million in Q1-08 while the provision for loan losses rose to $1.041 billion from $719 million in Q2-08. The net interest margin was 3.26%. The average yield of interest-earning assets was 4.62% while the average yield on interest-bearing liabilities was 1.78%. Of the $103.388 billion in interest bearing liabilities, $14.612 billion came from time deposits with an average yield of 3.48%; $11.455 billion came from CDs over $100,000 with average yields of 2.80%; and $11.130 billion came from long term debt with an average yield of 2.79%. Noninterest income was $2.583 billion [with $1.764 billion from the JV sale] compared with $722 million in Q2-08. Total net losses charged offs was $626 million [3.08% of average loans and leases excluding those held for sale] compared with $344 million [1.66%] in Q2-08. Total nonperforming loans and leases of $2.587 billion [$1.726 billion in Q2-08] plus Repossessed personal property of $21 million [$22 million in Q2-08] plus OREO of $232 million [$190 million in Q2-08] resulted in Total nonperforming assets of $2.840 billion [$1.938 billion in Q2-08]. NPAs as a percent of portfolio loans, leases and OREO was 3.48% compared with 2.26% in Q2-08. Including $352 million of nonaccrual loans classified as held-for-sale, total nonperforming assets were $3.192 billion. With total assets of $115.984 billion, NPAs were 2.75% of assets. FMBI Reports $0.00 vs. $0.55 in Q2-08 Market Wire 7-22 Itasca, Illinois' First Midwest Bancorp reported for Q2-09 Net income of $2.7 million - but after preferred dividends the income available to common shareholders was $0.063 million [$0.00128/share] compared to $27.0 million [$0.55/share] for Q2-08. ROA was 0.13% compared to 1.33% in Q2-08. ROE was 0.04% compared to 14.53% in Q2-08. Book value per share was $14.22. Tier 1 capital to risk-weighted assets ratio was 12.38%. Tier 1 leverage to average assets ratio was 9.87%. Net interest income was $60.391 million compared with $60.326 million in Q2-08. With a loan loss provision of $36.262 million compared with $5.780 million in Q2-08, net interest income after the provision was $24.129 million compared with $54.546 million in Q2-08. The Net interest margin was 3.53% compared to 3.67% for Q1-09 and 3.58% for Q2-08. FMBI placed loans on non-accrual status and accordingly reversed interest accrued to date of $2.6 million. Excluding this adjustment, Q2-09 net margin would have been 3.67%. Fee-based revenues were $21.2 million. Total net loans charged-off were $24.735 million or 1.85% of loans. Total non-performing loans of $263.963 million plus OREO of $68.878 million resulted in NPAs of $332.841 million. With total assets of $7.767 billion, NPAs were 4.29% of assets. $126.618 million of the NPLs were from the residential construction portfolio - and the NPLs in that portfolio were 28.63% of those loans. Contained in FMBI's security portfolio were Collateralized Debt Obligations that had unrealized losses. FMER Reports $0.13 vs. $0.36 in Q2-08 PRNewswire 7-28 Akron, Ohio's FirstMerit Corporation reported for Q2-09 net income of $15.5 million [$0.13/share] compared with $29.2 million [$0.36/share] for Q2-08. Q2-09 results was a $3.7 million FDIC Special Assessment fee ($0.04/share) and a $4.5 million expense ($0.06 per share) associated with the unamortized discount on the preferred stock under the TARP program. On April 22, FMER repurchased all of the $125 million in preferred, non-voting TARP stock that was sold to the Treasury Department. ROA was 0.57%. ROE was 6.27%. Book value per share was $11.99. The tangible common equity to assets ratio was 8.36%. FTE Net interest income was $88.806 million compared with $88.956 million in Q2-08. The provision for loan losses was $26.521 million compared with $14.565 million in Q2-08. Net interest margin was 3.56% compared with and 3.69% for Q2-08. Total interest earning assets of $10.001 billion oriduced income of $117.850 million at an average yield of 4.73%. Total interest bearing liabilities of $7.688 billion produced expenses of $29,044 million at an average yield of 1.52%. Liability cost were a little high due to $2.810 billion in time depositis at 2.74% and $1.020 billion in wholesale borrowing at 2.71%. Noninterest income net of securities transactions was $49.7 million [with total non-interest income of $50.845 million], a decrease of $5.5 million from Q1-09 and an increase of $1.0 million from Q2-08. Noninterest income in Q1-09 included a one-time $9.5 million gain due to curtailment of the postretirement medical benefit plan for active employees. Net charge-offs were $21.6 million [1.19% of average loans] compared with $15.6 million [0.86%] in Q1-09 and $10.7 million [0.60%] in Q2-08. Total nonperforming loans of $63.492 million plus OREO of $9.859 million resulted in Nonperforming assets of $73.351 million [1.03% of loans + OREO] compared with $76.243 million [1.04%] at March 31, 2009 and $41.7 million [0.57%] at June 30, 2008. This decrease from Q1-09 reflects strong workout and collection activity coupled with timely charge-off recognition. Withtotal total assets of $10.697 billion, NPAs were 0.59% of assets. FULT Reports $0.05 vs. $0.15 in Q2-08 Market Wire 7-21 Lancaster, PA's Fulton Financial Corporation reported Q2-09 net income available to common shareholders of $8.1 million [$0.05/share] compared with $25.678 million [$0.15/share] in Q2-08. ROA was 0.32% compared to 0.65% in Q2-08. ROE was 2.16% compared to 6.33% in Q2-08. Book value per share was $8.56. Net interest income was $198.097 million compared with $215.392 million in Q2-08. The net interest margin was 3.43% compared to 3.75% in Q2-08. The noninterest income was $45.300 million compared with $39.887 million in Q2-08. Non-performing assets were $292.2 million [1.73% of total assets] compared to $164.5 million [1.02%] at June 30, 2008 and $269.2 million [1.63%] at March 31, 2009. The $127.7 million increase in NPAs since June 30, 2008 was primarily due to a $66.0 million [178.3%] increase in non-performing construction loans, an $18.7 million [47.8%], increase in non-performing commercial mortgage loans, an $18.3 million [45.6%] increase in non-performing commercial loans and a $15.2 million [69.3%] increase in non-performing residential mortgage and home equity loans. Annualized net charge-offs were 0.97% of average total loans, compared to 0.33% for the quarter ended June 30, 2008 and 1.00% for the quarter ended March 31, 2009. HBAN Reports - $0.40 vs. $0.25 in Q2-08 PRNewswire 7-23 Columbus, Ohio's Huntington Bancshares reported for Q2-09 a loss of $125.1 million [- $0.40/share] copared with net income of $101.4 million [$0.25/share] reported in Q2-08. ROA was - 0.97% and ROE was - 10.2%. Book value was $6.23. The tangible common equity ratio was 5.68%. Tier 1 common risk-based capital ratio was 6.80%. Tier 1 ratio was 11.85%. Total risk-based capital ratio was 14.95%. FTE net interest income was $349.889 million compared with $389.866 million in Q2-08. The provision for credit losses was $413.707 million compared with $120.813 million in Q2-08. The net interest margin was 3.10%. Total noninterest income was $265.9 million compared with $239.1 million in Q1-09 and $236.4 million in Q2-08. Q2-09 contain a $31.4 million gain on the sale of Visa stock. Total net charge-offs were $334.4 million, or an annualized 3.43% of average total loans and leases. Total nonaccrual loans and leases of $1.818 billion plus OREO of $0.713 billion resulted in Total nonperforming assets of $2.003 billion. With total assets of $51.397 billion, NPAs were 3.90% of assets. MBFI Reports - $0.05 vs. $0.63 in Q2-08 Business Wire 7-16 Chicago's MB Financial reported for Q2-09 a net income of $2.905 million [$0.05/share] compared $17.314 million [$0.63/share] in Q2-08. ROA was 0.20% and ROE was 0.81%. Book value was $23.30. Total capital to risk-weighted assets ratio was 13.89%. Tier 1 capital to risk-weighted assets ratio was 11.88%. Tier 1 capital to average assets ratio was 9.55%. Net interest income was $59.389 million [$32.289 million after provision for loan losses] compared with $56.073 million [$43.873 million after provision] in Q2-08. The net interest margin was 3.05% [FTE NIM = 3.18%] compared with 3.11% [FTE NIM 3.25%] in Q2-08. Total interest earning assets of $7.803 billion produced income of $96.360 million at an averatge yield of 4.95% while Total interest bearing liabilities of $6.485 billion produced expenses of $34.475 million at an average yield of 2.13%. Total other [non-interest] income was $29.082 million compared with $25.567 million in Q2-08. Most categories of non-interest income suffered year-over-year losses while the Net gain on sale of investment securities was $4.093 million compared to a gain of $1 thousand in Q2-08. Total non-performing loans of $227.681 million [$93.559 million in Q2-08] plus OREO of $17.111 million [$1.499 million] plus Repossessed vehicles of $0.203 million [$0.081 million] resulted in Total non-performing assets of $244.995 million [$95.179 million in Q2-08] was 2.92% of assets [compared with 1.13% in Q2-08]. Non-performing loans to total loans increased to 3.59% from 1.56% in Q2-08. Total net charge-offs were $25.017 million compared with $12.081 million in Q2-08. MI Reports - $0.50 vs. - $1.52 in Q2-08 Business Wire 7-17 Milwaukee's Marshall & Ilsley reported for Q2-09 a net loss of $114.3 million [- $0.50/share] compared to a loss of $393.8 million [$1.52/share] in Q2-08. ROA [114 times 4 divided by 59788] was - 0.76% and ROE [114 times 4 divided by 6689] was - 6.82%. Book value was $13.78. Total capital (to risk-weighted assets) ratio was 13.4x%. Tier 1 capital (to risk-weighted assets) ratio was 11.4x%. Tier 1 capital (to average assets) ratio was 9.2x%. Net interest income was $398.5 million compared with $468.2 million in Q2-08. The Provision for Loan and Lease Losses decline to a still huge $468.2 million from $886.0 million in Q2-08. The FTE net interest margin was 2.79% compared to 3.14% while the spread was 2.39% compared with 2.71% in Q2-08. Interest Earning Assets had an average yield of 4.45% while Interest Bearing Liabilities had an average yield of 2.06%. Total Non-Interest Revenues was $267.2 million compared with $187.0 million in Q2-08. Net Charge-Offs were $452.6 million and Net Charge-Offs to Average Loans & Leases was 3.71%. Total Nonperforming Loans & Leases pf $2.502 billion plus OREO of $356 million resulted in Nonperforming Assets of $2.859 billion [compared to $1.214 billion in Q2-08]. With total assets of $59.788 billion, NPAs were 4.78% of assets. MTB Reports $0.49 vs. $1.14 in Q2-08 PRNewswire 7-21 Buffalo, New York's M&T Bank reported for Q2-09 earnings of $64 million [$0.49/share] compared with $160 million [$1.44/share] in Q2-08. ROA was 0.40% and ROE was 3.61%. Book value was $56.51. The year-over-year declines in the per share amounts for common stockholders' equity and tangible common equity were largely the result of higher net unrealized losses in the available-for-sale investment securities portfolio. M&T's tangible common equity to tangible assets ratio was 4.49%. Total stockholders' equity was $7.4 billion at June 30, 2009, representing 10.58% of total assets. FTE net interest income totaled $507 million compared with $492 million in Q2-08 and $491 million in Q1-09. The FTE net interest margin was 3.43%. Total earning assets $59.297 billion produced income of $677.423 million at an average yield of 4.62%. Total interest-bearing liabilities $48.006 billion produced expenses of $175.856 million at an average yield of 1.47%. The Net interest spread 3.15% plus the Contribution of interest-free funds of 0.28% resulted in the Net interest margin of 3.43%. Noninterest income was $296 million, up from $277 million in Q2-08. Loans past due 90 days or more and accruing interest were $155 million compared with $94 million at June 30, 2008. Included in these past due but accruing amounts were loans guaranteed by government-related entities of $144 million. Loans classified as nonaccrual increased to $1.111 billion, or 2.11% of total loans at June 30, 2009 from $568 million or 1.16% a year earlier and $1.0 billion or 2.05% at March 31, 2009. Assets taken in foreclosure of defaulted loans were $90 million at June 30, 2009, compared with $53 million at June 30, 2008 and down from $100 million at March 31, 2009. Total nonperforming assets were $1.202 billion. With total assets of $69.913 billion, NPAs were 1.72% of assets. Net charge-offs of loans totaled $138 million [1.09% of average loans] compared with $99 million [0.81%] in Q2-08. NAL Reports $0.10 vs. $0.12 in Q2-08 Business Wire 7-28 New Haven's NewAlliance Bancshares reported for Q2-09 net income of $10.1 million [$0.10/share] compared to $11.8 million [$0.12/share] for Q2-08. Excluding the FDIC special assessment of $2.6 million after taxes, net income was $12.7 million or $0.13/share. ROA was 0.47% and ROE was 2.89%. Book value was $13.18. Tier 1 leverage ratio was 10.88%. total risk-based capital ratio was 20.58%. Net interest income was $49.27 million compared to $48.248 million in Q2-08. The provision for loan losses was $5.0 million compared with $3.7 million in Q2-08. The net interest margin was 2.63%. Total interest-earning assets of $7.606 billion produced income of $94.082 million at an average yield of 4.95%. Total interest-bearing liabilities of $6.526 billion produced expenses of $44.155 million at an average yield of 2.71%. Liability costs were high due to NAL having Time depostis of $1.604 billion costing $12.192 million at an average yield of 3.04% and FHLB advances and other borrowings of $2.135 billion costing $22.489 million at an average yield of 4.21%. Total non-interest income was $15.291 million compared with $14.519 million in Q2-08. Total nonperforming assets were $55.864 million or 0.65% of assets. Total net charge-offs were $4.133 million or 0.33% of average loans. NBTB Reports $0.34 vs. $0.45 in Q2-08 Market Wire 7-27 Norwich, New York's NBT Bancorp reported for Q2-09 net income of $11.6 million [$0.34/share] compared with $14.7 million [$0.45/share] for Q2-08. FDIC expenses increased $3.8 million over Q2-08, including the special assessment of $2.5 million. ROA was 0.85% and ROE was 9.63%. Book value was $14.06. Tier 1 Leverage Ratio was 8.08%. Tier 1 Capital Ratio was 11.00%. Total Risk-Based Capital Ratio was 12.26%. Net interest income was $48.1 million compared with $46.0 million for Q2-08. NBTB recorded a provision for loan and lease losses of $9.2 million compared with $5.8 million during Q2-08. The FTE net interest margin was 3.95% as compared with 3.94% for Q2-08. Total interest earning assets of $5.043 billion produced income of $69.947 million at an average yield of 5.56%. Total interest bearing liabilities of $4.186 billion produced expenses of $20.321 million at an average yield of 1.95%. Total liability cost was a little high due to NBTB having Time deposits of $1.279 billion costing $8.690 million at an average yield of 2.72% and Long-term debt of $609 million costing $5.997 million at an average yield of 3.95%. Noninterest income was $19.8 million, up $3.4 million [20.9%] from $16.4 million for Q2-08, due primarily to an increase in insurance and broker/dealer revenue, which increased approximately $2.9 million. Net charge-offs totaled $5.8 million [0.63% of average loans] down from $7.8 million [0.88% of average loans] for Q2-08, due primarily to a charge-off related to one large commercial loan during Q2-08. Total Nonperforming Loans of $40.175 million plus OREO of $1.688 million resulted in Total Nonperforming Assets of $41.863 million or 0.77% of total assets. NTRS Reports $0.95 vs. $0.96 in Q2-08 PRNewswire 7-22 Chicago's Northern Trust Corporation reported Q2-09 net income of $314.2 million (or $226.1 million after the impact of dividends and discount accretion relating to preferred shares which reduced income by $0.37/share) or [$0.95/share] compared with $215.6 million [$0.96/share] in Q2-08. Q2-08 results included non-cash accounting charges of $87.3 million [$0.39/share]. ROA was 1.71% and ROE was 15.48%. Book value was $25.39. NTRS's tier 1 capital ratio was 12.6%. Tier 1 common equity to risk-weighted assets ratio was 12.1%. The leverage ratio was 8.6%. Total risk-based capital ratio was 15.0%. Total Noninterest Income was $785.0 million compared with $845.3 million in Q2-08. Trust, Investment and Other Servicing Fees fell to $601.4 million from $645.1 million in Q2-08. Custody and fund administration fees decreased 19% to $140.5 million, driven primarily by declines in the equity markets. Securities lending fees totaled $172.5 million compared with $149.9 million in Q2-08. The current quarter included a positive mark-to-market adjustment of approximately $129 million relating to prior period unrealized asset valuation losses recorded in one mark-to-market investment fund used in our securities lending activities. This compares to a positive mark-to-market adjustment of $25 million in Q2-08. Excluding the impact of the mark-to-market adjustments, the current quarter decrease in securities lending fees reflects significantly reduced volumes. Fees from asset management totaled $61.1 million, down 15%, reflecting lower market valuations. Trust, investment and other servicing fees from Personal Financial Services decreased 11% and totaled $210.5 million compared with $235.9 million in Q2-08, with the shortfall due to significantly lower market valuations, offset in part by strong new business. FTE Net interest income totaled $260.1 million compared with $248.8 million in Q2-08. The net interest margin was 1.59%. Nonperforming Loans of $227.9 million [$30.1 million in Q2-08] plus OREO of $5.9 million [$4.3 million in Q2-08] resulted in Total Nonperforming Assets of $233.8 million [$34.4 million in Q2-08] Nonperforming Assets to Loans & OREO was 0.81% [0.12% in Q2-08]. With Total Assets of $75.045 billion, NPAs were 0.31% of assets. Net Charge-offs were $44.7 million or 0.62% of average loans. ONB Reports $0.15 vs. $0.30 in Q2-08 Globe Newswire 7-27 Evansville, Indiana's Old National Bancorp reported for Q2-09 net income of $9.635 million [$0.15/share] compared with $19.475 million [$0.30/share] in Q2-08. The FDIC special assessment added exepnses of $4.0 million and the provision for loan losses from from $5.700 million to $11.968 million. ROA was 0.47% and ROE was 6.02%. Book value was $9.55. The tier 1 capital ratio was 10.2%. Total risk-based capital ratio was 12.6%. Tangible Equity to Tangible Assets ratio was 5.51%. FTE net interest income was $66.333 million and represented a net interest margin on total average earning assets of 3.59%. Noninterest income was $42.659 million. NPAs [a statistic ONB did not give so I added NPLs ($77.7 million - and 1.71% of ending loans) + OREO (0.0? million) to get NPAs] were a calculated $77.7 million and with total assets of $8.012 billion, NPAs were 0.97% of assets [but it is hard to believe that OREO is zero]. Net Charge-offs were 1.18% of Average Loans. SNV Reports - $1.82 vs. $0.04 in Q2-08 Business Wire 7-24 Columbus Georgia's Synovus reported a loss for Q2-09 of $586.9 million [- $1.82/share] compared to net income of $12.1 million [$0.04/share] for Q2-08. ROA was - 6.76% and ROE was -91.66%. Book value was $6.45. Tier 1 Capital Ratio was 9.52%. Total Risk-Based Capital Ratio was 12.76%. Tangible Common Equity to Tangible Assets Ratio was 6.05%. Net interest income was $256.608 million compared to $273.421 million in Q2-08 while the net interest income after provision for loan losses was - $374.918 million compared to $179.805 million in Q2-08. The net interest margin was 3.23% compared to 3.57% in Q2-08. Total Interest Earning Assets of $32.124 billion produced income of $385.710 million at an average yield of 4.83%. Total Interest Bearing Liabilities of $27.131 billion produced an expense of $127.883 million at an average yield of 1.89%. The FTE adjustment was a negative $1.219 million. Non interest income was $107.838 million compared to $107.698 million in Q2-08. Nonperforming Loans of $1.490 billion [$626.571 million in Q2-08] plus Other Loans Held for Sale of $34.938 million [$6.365 million in Q2-08] plus OREO of $210.968 million [$197.328 million in Q2-08] resulted in Nonperforming Assets of $1.736 billion [$830.264 million in Q2-08]. Nonperforming Loans to Total Loans ratio was 5.40%. NPAs to Loans, Other Loans Held for Sale & OREO was 6.24%. With total assets of $34.350 billion, NPAs were 5.05% of assets. Net Charge-Offs were $355.224 million compared with $70.652 million in Q2-08. The Net Charge-Offs to Average Loans ratio was 5.09% compared with 1.04% in Q2-08. SUSQ Reports - $0.14 vs. $0.34 in Q2-08 Business Wire 7-22 Lititz, Pa.'s Susquehanna Bancshares reported for Q2-09 net income [loss] available to common shareholders of - $11.9 million [$0.14/share] compared to a gain of $29.2 million [$0.34/share] for Q2-08. Q2-09 contained an increase in the loan loss provision of $15.0 million and a FDIC special assessment of $6.2 million. ROA was - 0.23% and ROE was -1.60%. Book value was $19.21. The Leverage Ratio was 9.62%. The Tier 1 Capital Ratio was 10.69%. The Total Risk-Based Capital Ratio was 13.23%. Net interest income was $100.105 million compared with $99.058 million in Q2-08 while Net interest income after provision for loan and lease losses was $50.105 million compared with $85.293 million in Q2-08. The Net interest margin was 3.52% compared to 3.66% for Q2-08. Total interest-earning assets of $11.792 billion produced income of $164.907 million at an average yield of 5.61%. Total interest-bearing liabilities of $10.283 billion produced expenses of $61.490 million at an average yield of 2.40%. Liability costs were high due to SUSQ having Time deposits of $4.282 billion which produced expenses of $36.241 million at an average yield of 3.40%; FHLB borrowings of $1.053 billion which produced expenses of $10.093 million with an average yield of 3.84%; and Long-term debt of $0.448 billion which produced expenses of $7.913 billion with an average yield of 7.08%. Noninterest income was $34.797 million compared with $44.685 million in Q2-08. Total charge-offs were $24.647 million, or 1.01% of average loans and leases. Nonaccrual loans & leases of $199.354 million plus Restructured loans of $30.799 million plus OREO of $25.809 million resulted in Total nonperforming assets of $255.962 million. NPA / Loans & leases & OREO ratio was 2.57%. With Total assets of $13.872 billion, NPAs were 1.84% of assets. USB Reports $0.12 vs. $0.53 in Q2-08 Business Wire 7-22 Minneapolis' U.S. Bancorp reported Q2-09 net income of $471 million [$0.12/share] compared with $1.09x billion [$0.53/share] in Q2-08. Q2-09 included an FDIC special assessment equal to $.05/share and the accelerated amortization of the discount associated with the TARP preferred stock redeemed on June 17 equal to $.08/share, and a provision for credit losses in excess of net charge-offs equal to $.20/share. ROA was 0.71% and ROE was 4.2%. Book value was $11.86. Tier 1 capital ratio was 9.4%. Total risk-based capital ratio was 13.0%. The Tier 1 common equity ratio was 6.7%. FTE net interest income $2.104 billion compared with $1.892 million in Q2-08. The increase was primarily the result of growth in average earning assets - up by $22.2 billion (10.5%). The net interest margin was 3.60% compared with 3.61% in Q2-08. Noninterest income was $2.055 billion compared with $1.892 billion in Q2-08. Trust and investment management fees fell to $304 million from $350 million in Q2-08 and Deposit service charges fell to $250 million from $278 million. But this was more than offset by Mortgage banking revenue increasing to $308 million from $81 million in Q2-08. Total net charge-offs were $929 million compared with $396 million in Q2-08. Total nonperforming loans of $3.696 billion [$971 million in Q2-08] plus OREO of $293 million [$142 million] plus Other nonperforming assets of $27 million [$22 million] resulted in Total nonperforming assets of $4.016 billion [$1.135 billion in Q2-08]. The ratio of nonperforming assets to loans and other real estate was 2.20% (1.94% excluding covered assets) at June 30, 2009, compared with 1.85% (1.56% excluding covered assets) at March 31, 2009, and .68% at June 30, 2008. With Total assets of $265.560 billion, NPAs were 1.51% of assets. The increase in NPAs was driven primarily by the residential construction portfolio and related industries, as well as the residential mortgage portfolio, an increase in foreclosed residential properties and the impact of the economic slowdown on other commercial customers. USB expects nonperforming assets to continue to increase as difficult economic conditions affect more borrowers within both consumer and commercial loan portfolios. VLY Reports $0.06 vs. $0.31 in Q2-08 PRNewswire 7-23 Wayne, New Jersey's Valley National Bancorp reported for Q2-09 net income of $15.0 million [$0.06/share] compared to $41.5 million [$0.31/share] for Q2-08. Q2-09 results were impacted by a $24.4 million [$0.11/share] non-cash charge due to the change in the fair value of junior subordinated debentures; a $6.5 million [$0.03/share] industry-wide FDIC special assessment [equal to 5 bps of VLY's total assets minus Tier 1 capital as of June 30, 2009]; and accrued preferred stock dividends and accretion totaling $5.8 million [$0.04/share]. ROA was 0.42% and ROE was 4.41%. Book value was $7.75. Total risk-based capital ratio was 12.94%. Tier I capital ratio was 11.09%. Leverage capital ratio was 8.74%. FTE Net interest income was $114.4 million compared with $103.9 million from Q2-08. The FTE net interest margin was 3.52% compared with 3.48% in Q2-08. Total interest earning assets of $12.988 billion produced income of $182.111 million at an average yield of 5.61%. Total interest bearing liabilities of $10.502 billion produced expenses of $67.708 million at an average yield of 2.58%. Why the high cost? The $10.5 billion of liabilities included $3.4 billion of Time deposits with an average yield of 3.06% and $3.1 billion in Long-term borrowings with an average yield of 4.44%. Noninterest income was a loss of $0.389 million compared with $18.0 million from Q2-08. VLY had net trading losses of $18.6 million in Q2-09 after the $24.4 million non-cash charge on debentures. Total non-performing assets, consisting of non-accrual loans of $57.731 million, OREO of $4.993 million, and other repossessed assets of $3.699 million, totaled $66.423 million, or 0.69% of loans at June 30, 2009 compared to $56.975 million, or 0.58% of loans at March 31, 2009. With Total Assets of $14.132 billion, NPAs were 0.47% of assets. Net loan charge-offs were $8.2 million compared to $7.2 million for Q1-09, and $4.9 million for Q2-08. Annualized net charge-offs to average loans ratio was 0.31%. Total loans past due 30 days or more on our entire loan portfolio were $9.6 billion [1.49%] at June 30, 2009 compared to 1.34% at March 31, 2009. VLY's commercial mortgage portfolio had loans past due 30 days or more were 1.24% of those loans at June 30, 2009 compared to 1.35% at March 31, 2009. At June 30, 2009, VLY's home equity and residential mortgage loan portfolios totaling approximately 23,000 individual loans had only 134 loans past due 30 days or more compared to 123 loans at March 31, 2009. These delinquencies totaled $31.3 million [or 1.18%] of $2.6 billion in total. WL Reports - $0.20 vs. $0.29 in Q2-08 Business Wire 7-24 Wilmington, Delaware's Wilmington Trust reported for Q2-09 loss of $9.1 million while the loss to common unit holders was $13.6 million [- $0.20/share] compared with a loss of $19.5 million [- $0.29/share] in Q2-08. [The net loss available to common shareholders in Q2-09 was reduced by $4.5 million in preferred dividends.] This loss was caused primarily by securities losses of $23.4 million [$0.26/share] on pooled trust-preferred investment securities. On an operating basis (excluding the securities impairment), net income for Q2-09 was $8.8 million [$0.06/share]. The FDIC special assessment for WL was $5.3 million. The provision for loan losses rose to $54.0 million from $29.5 million last quarter. ROA was - 0.32% and ROE was - 3.58%. Book value was $14.26. Total was 14.02%. Tier 1 risk-based capital ratio was 9.68%. Tier 1 leverage capital ratio was 9.79%. The net interest income (before the provision for loan losses) was $81.6 million compared with $85.2 million in Q2-08. Net interest income (after provision for loan losses) was $76.7 million compared with $143.7 million in Q2-08. The net interest margin was 3.16% compared to 3.17% for Q2-08. The average yield on total earning assets was 4.31%. The average yield on total interest-bearing liabilities was 1.41%. Noninterest income was $81.6 million compared with $93.2 million in Q2-08. Net charge-offs were $36.2 million [0.39% of average loan - NOT annualized]. Total nonperforming assets, including renegotiated loans of $3.2 million and OREO of $28.3 million, increased to $330.3 million from $251.1 million at the end of Q1-09 and $88.5 million at the end of Q2-08. With total assets of $11.420 billion, NPAs were 2.89% of assets. At June 30, 2009, WL's security portfolio included 38 pooled TruPS [pooled trust-preferred investment securities] and 9 single-issue securities, which are recorded on the balance sheet in other securities. The pooled TruPS consist of securities issued by banks, insurance companies, and other financial institutions. The single-issue TruPS are from money center and large regional banks. In Q2-09, 21 of the pooled TruPS were determined to be other-than-temporarily impaired (OTTI) under U.S. generally accepted accounting principles, and the company recorded a $67.7 million write-down on the value of these securities. Of this amount, $23.4 million was determined to be credit-related, as it represented reductions in estimated cash flows from the OTTI TruPS. Under new OTTI accounting rules, which the company adopted on April 1, 2009, the $23.4 million was recorded as a securities impairment (loss), which reduced 2009 second quarter net income by $17.9 million on an after-tax basis. The remainder of the $67.7 million OTTI write-down was recorded in other comprehensive income, which reduced common stockholders’ equity by $28.4 million on an after-tax basis. In Q4-08, 14 pooled TruPS were determined to be OTTI, and the company recorded an associated securities impairment of $97.0 million. In Q1-09, 1 pooled TruPS was determined to be OTTI, and the associated securities impairment was $0.6 million. Ten Ways Banks Take Your Money Jennifer Waters, WSJ 7-04 Consumers need to keep their guard up as financial institutions increasingly impose new fees and charges. Banks and credit-card companies have gone on the offensive in advance of new consumer protections the Obama administration is asking Congress to enact. For many consumers, that could mean an unexpected financial sting. "The fee income is becoming increasingly more important as interest income is falling as a percentage of total revenues," says Bob Hammer, chief executive of bank-card advisory firm R.K. Hammer. Late fees, loan-origination fees, over-the-limit and overdraft charges helped generate 53% of banking-industry income in 2008, according to R.K. Hammer, up from 35% of income in 1995. The average bounced-check fee is $28.95, up about $1 from last year, says Greg McBride, senior analyst at Bankrate.com. And it's a charge that rises every year. At $19 billion, credit-card penalties for late payments and over-limit charges were up 80% between 2003 and 2008. Fees aren't necessarily bad, consumer advocates say, as long as they are reasonable. There's a lot more involved in a loan origination, for example, than there is in using an ATM. But Adam Levine, chairman of Credit.com, says banks are drawing wide margins around what's considered "reasonable." One thing to keep in mind: It's worth the time to ask for a pass on fees. No bank is going to advertise that it waives fees on a regular basis, but many will do so when asked. Here are 10 fees you should keep a close eye on: 1. Checking account This is the privilege-of-using-your-own-money charge that many banks did away with years ago. But such fees are starting to creep back into the system, experts warn. Consumers shouldn't assume their checking accounts are fee-free or, if they are, that they will always continue to be so. Charges vary from a flat monthly fee to one that is dependent on how many transactions you have or on a minimum account balance. "The type of checking account to now look for is one that does not have a monthly service charge, minimum balance requirement or limit on the number of transactions you can make," says Bankrate's Mr. McBride. 2. ATM If you use an ATM that doesn't belong to your bank or doesn't have an agreement with your bank, you could get whacked twice -- once by your bank and once by the bank whose ATM you're using. Fees typically range between $2 and $4. And the bite is getting bigger. 3. Overdraft Charges can add up when you unknowingly bounce a check or go over your account balance. Many consumers argue that banks should deny them cash at the ATM if the withdrawal is going to overdraw the account. But most banks don't do so because allowing the transaction to go through and charging the subsequent penalty brings in money. 4. Deposit returned If a check deposited in your account bounces, you're charged a fee just as if you had bounced the check yourself. 5. Tellers Banks drew fire from consumers in the 1990s when they tried charging a fee if human interaction occurred when depositing or withdrawing money. There are scattered reports of these fees popping up again, mostly for "excessive" use of tellers. Some banks give you two free teller visits per month, but charge you after that -- say, $2 or $4 for each extra visit. 6. Inquiries This is the phone version of teller fees. Make a call to ask about your account balance, a charge or to order new checks and you could get hit with a service fee ranging from 50 cents to $5. 7. Closing accounts Many banks will charge you a fee if you close an account within 90 days -- and sometimes within six months -- of opening it. Bankrate has seen fees between $5 and $25. 8. Currency conversions Fees to convert currency are on the rise -- both what you're charged when withdrawing local currency from a foreign ATM and what you pay to convert any unspent money back to dollars at your local bank. 9. Credit cards Legislation going into effect next year will put caps on some credit-card late and over-limit fees and on how they're charged against old and new balances. Until then, expect to see them grow. Grace periods also are expected to end or be severely restricted. 10. Annual membership In the early days of credit cards, issuers charged consumers a yearly fee for the right to use the card. Competition drove most annual fees away, but it looks like they may make a comeback. An annual fee could cost you $29 or more. Mark-to-Market Accounting Could Help Goose Bank Earnings Matt Phillips, WSJ 7-04 Some big banks — starting with Goldman Sachs today and continuing with Bank of America, J.P. Morgan Chase and Citi — are set to report this week. So, here's one wonky area to watch in earnings reports from financials: losses and gains tied to different aspects of mark-to-market accounting. You remember them, of course. Those are the guidelines that tell banks the price tags they slap on hard-to-value bonds and other assets should reflect market prices. A recent American Banker report noted that some elements of those rules — which helped goose bank earnings in the first quarter — might have reversed themselves in the second quarter. A peculiar aspect of mark-to-market accounting — the part that lets companies value certain liabilities based on their worth in the marketplace, as opposed to the amount the companies actually are on the hook for — probably worked against the big banking firms last quarter, after providing a windfall to the bottom line in the first quarter. "When a bank’s credit quality goes down, the market value of the bonds that it issues goes down, because those IOUs are worth less, and if it’s worth less to you, then it’s a lower liability to me," said Darrell Duffie, a finance professor at Stanford University’s Graduate School of Business. "But it’s a two-sided sword," meaning that as a bank’s creditworthiness improves, so does the value of its IOUs and, by extension, its liabilities. Remember how Bank of America logged a $2.2 billion gain based on a write-up of the value of Merrill debt during the first quarter, helping BofA notch that $4.2 billion first quarter profit? These were the rules that allow them to do it. (And it’s perfectly within the rules.) Citi and J.P. Morgan Chase also notched similar types of gains last quarter. That was all well and good. But with improvements seen in the credit markets of late, the banks might have to revisit and reverse their write-ups on their outstanding IOUs, turning them into write-downs. (Bummer, guys.) But don’t forget, mark-to-market rules will also allow banks to reverse some of those massive write-downs over the last couple years as prices improve for some of bonds and debt they’re holding on their books. So what’s the deal? Will mark-to-market help or hurt earnings for banks? In a recent chat, Jeffrey Kleintop, chief market strategist of LPL Financial told MarketBeat he thinks they’ll be a bottom-line boon. "These two competing effects (rising debt asset and liability values) will impact second quarter results. But much like in prior quarters, the change in the value of the debt assets exceeds the change in the value of the liabilities so on a net basis when the credit markets improve it should boost results." [Quick translation: Write-ups on the backlogs of gnarly debt on bank balance sheets should beat out, writedowns on the value of bank IOUs to creditors.] "Wait, wait, wait," you say. "Didn’t some Jedi council of accounting poobahs ease the rules about mark-to-market, so banks wouldn’t have to write down all their toxic sludge?" (Short answer: Yes.) "So mightn't banks opt not to report under mark-to-market rules?" you ask. We put the question to Kleintop, who answered in an e-mail, writing "this would be more of an issue if the toxic debt went down in value and trading seized up this past quarter. But since it went up in value and the market for the debt became more liquid the companies are likely to be happy to write it up to the new market value rather than model the prices and risk raising questions about their accounting that would call gains into question." Bottom line: Rules related to mark-to-market aren't always awful for banks, especially if markets are moving in a direction they like. Ratings & Dividend Changes - July On 7-15 SUSQ declared a dividend of $0.05/share payable on August 20, 2009 to shareholders of record August 3, 2009. On 7-22 ASBC declared a dividend of $0.05/share payable on August 17, 2009, to shareholders of record on August 6, 2009. On 7-22 HBAN declared a dividend of $0.01/share payable October 1, 2009, to shareholders of record on September 11, 2009. On 7-22 WL declared a dividend of $0.01/share to be paid on August 17, 2009, to shareholders of record on August 3, 2009. On 7-27 ONB declared a dividend of $.07/share payable September 15, 2009, to shareholders of record September 1, 2009. On 7-28 CMA declared a dividend of $0.05/share payable October 1, 2009, to common stock shareholders of record September 15, 2009. On 7-24 Stifel Nicolaus Upgraded VLY from Hold to Buy. FBR Upgrades BBT On 7-10 analysts at FBR Capital Markets, led by Paul Miller, upgraded SunTrust Banks [STI] and BB&T Corp to "market perform" from "underperform," and said: "We expect banks with capital markets or mortgage banking businesses should experience significant positive boosts to earnings in the second quarter." However, they said they were "very cautious" about the second half of the year as strength in capital markets and mortgage banking could wane in the face of what could be credit costs well above most investors' expectations. The analysts were cautious on BB&T shares, despite the upgrade, as they expect credit costs to continue weighing on the bank's earnings. BB&T is exposed to risky markets, such as Florida, Georgia, Tennessee and the Carolinas, they said. However, its capital levels are healthy relative to peers and the downside risk to its shares remain limited, they said. Baird Upgrades FMBI On 7-13 analysts at Robert W. Baird upgraded shares of FMBI to outperform from neutral Monday, saying the bank's ability to absorb losses and its earnings potential are not reflected in the valuation. "Near-term profitability has outweighed long-term earning power and left investors with we believe is an attractive risk/reward trade-off," they wrote in a note to investors. The analysts also bumped-up their price target to $11 from $10 a share. Morgan Keegan Upgrades MI Morgan Keegan upgraded Marshall & Ilsley (MI) to "outperform" from "market perform," saying a combination of current valuation, adequate capital and a proactive management effort to deal with credit issues offers an attractive risk/reward opportunity for investors. Better-than-expected credit trends, when the bank reports second quarter results on July 17 could serve as positive catalyst, analyst Robert Patten said in a research note. The analyst wrote that near-term concerns on weakening earnings power and rising credit losses are likely to persist, but added that following the completion of the bank's recent common equity raise, MI has adequate capital to work its way through the current credit cycle. The bank - which took $1.72 billion of federal bailout money - said last month that its public offering of 87 million common shares had been priced at $5.75 apiece. Marshall & Ilsley has underperformed its peers and is down 15% since the pricing of its common equity offering on June 11, while the KBW Bank index has dropped 4% during the same period, the analyst noted. Fitch downgrades BB&T On 7-17 Fitch analysts lowered the long-term rating to "A+" from "AA-" and the short-term rating to "F1" from F1+". The rating outlook is "Negative." Fitch analysts expect higher loss rates across various loan categories, particularly commercial real estate. The analysts credited the bank with conservative underwriting and said its loan portfolio should contain credit deterioration, with problem assets and credit losses expected to remain at manageable levels. The downgrade of issuer default ratings reflects the view that BB&T's financial profile will continue to be challenged by the current credit environment. Fitch expects that the deteriorating economic environment will increase credit issues across various portions of BB&T's consumer and commercial loan portfolios, many that have performed well to date. In particular, the company's commercial real estate portfolio, centered in the southeastern U.S., which has experienced minimal credit issues, is expected to generate higher loss rates in the future. It also is anticipated that BB&T's residential acquisition, development, and construction portfolio, as well as its mortgage and home equity portfolios will experience increased pressure. Fitch also downgraded the company's individual rating to "B." The analysts said BB&T's liquidity position is good and its sizable branch network provides a healthy source of core funding. The company's capital position is considered sound and was augmented by the recently completed common stock issuance of $1.7 billion, which allowed BB&T to repay its $3.1 billion in preferred stock issued to the U.S. Treasury as part of its capital purchase program. Sterne Agee Downgrades Synovus On 7-23 Sterne Agee analyst Adam Barkstrom downgraded Synovus Financial after the financial services company posted a worse second-quarter loss than expected. "While we appreciate management's aggressiveness in dealing with problem credit issues and added transparency this quarter, we can no longer say with high conviction that the company does not need additional capital resources," Barkstrom wrote. He estimated SNV needs about $500 million to get through the difficult economic cycle and additional money to repay the U.S. Treasury to exit the TARP program. He lowered his rating to "Neutral" from "Buy" and cut his estimates for 2009 and 2010. Morgan Keegan Maintains Synovus at Outperform On 7-23 Morgan Keegan analyst Robert Patten cut his 2009 EPS estimate for SNV too, but he maintained an "Outperform" rating. Patten noted SNV's aggressive affort to dispose of more than $400 million worth of nonperforming assets with a goal of disposing of $600 million by the end of the year. The resulting higher credit expenses contributed to the deeper-than-expected loss, he said. He said the efforts should pay off, however, in the form of a better-than-expected earnings recovery in 2010. Home Page Factoids Previous Update |