(By Mayur Pahilajani - iStockAnalyst Writer)
New York, NY - The regional banks swung to fourth quarter losses as the financial crisis deepened, but most of the banks have acknowledged that they are under no illusions as to the severity of this credit cycle. M&T Bank Corp. (NYSE: MTB) is an exception among the regional banks.
KeyCorp (NYSE: KEY) stock was moving up by 41 cents or 6.11 percent to $7.10, after it hit a high of $7.38 earlier in the session. The Cleveland, Ohio-based bank swung to fourth-quarter net loss of $524 million as it posted a write down of $420 million or 85 cents per share. In the quarter, the regional bank's net loss reached $1.13 per share, and compared with a profit of $22 million, or 6 cents, a year earlier amid deepening financial crisis. The market analysts on Wall Street expected the bank to post small loss of one cent per share, excluding items. The firm had set aside $594 million for credit losses, which is higher compared to the previous year's $363 million.
Fifth Third Bancorp (NASDAQ GS: FITB) shares were sharply moving down on Thursday 67 cents or 16.79 percent to $3.32, after hitting a 52-week low of $2.91 earlier in the session from the previous low of $3.84. Like many rivals, the Cincinnati, Ohio-based bank swung to fourth-quarter loss of $2.18 billion as Fifth Third recorded a $965 million goodwill write-down. The leading Midwest regional bank has recorded its third straight net loss of $3.82 a share from a profit of $16 million, or 3 cents a share, a year earlier. The market analysts had expected the company to break-even in the quarter. But the company said its Tier 1 capital ratio was strong at 10.59 percent after it sold $3.4 billion in preferred shares to the U.S. Department of the Treasury.
CIT Group Inc. (NYSE: CIT) was sharply moving down on Thursday morning by 18 cents or 6.34 percent to $2.66, after hitting a low of $2.61 earlier in the session. The company has traded between $1.65 and $30.75 in the last 52-week period. The stock suffered as the commercial lender reported wider-than-expected fourth quarter loss to $203.8 million, or 69 cents a share, from $130.8 million, or 69 cents a share in the year ago period. The net loss of the company also includes preferred dividends of $20.4 million in the latest quarter compared to $7.5 million in the year earlier period. The firm also sold $328 million in common stock and received $2.33 billion through the U.S. government's Troubled Assets Relief Program (TARP). The firm's Tier 1 core capital ratio, which is a measure of capital strength, was at 9.8 percent by 2008.
M&T Bank Corp. (NYSE: MTB) stock was slipping down by $3.25 or 8.58 percent at $34.65, following its drop to 52-week low of $34.02 from the previous $34.88. The stock has traded as high as $108.53 in the last year.
