On July 23, 2009 before the opening bell, Huntington Bancshares Inc (HBAN) reported second quarter 2009 results. Core earnings were ($0.44) per share abysmally missing our as well as Street’s expectations. We expected a loss of $0.03 per share. Last year earning was $0.28 per share. Net loss (GAAP) was $0.40 per share, compared to $0.25 last year.  Net interest margin expanded 13 basis points sequentially but shrank 19 basis points year over year to 3.10%.  Credit metrics continued to experience substantial erosion again in this quarter. Net charge-offs were 3.43% of average total loans and leases, up from 3.34% last quarter and 0.64% last year. NPA ratio was 5.18%, up from 4.46% last quarter and 1.52% last year. Provision for loans and leases were $413.7 million, down $121.9 million sequentially but up $292.9 million year-over-year.  Book value per share declined to $6.23 per share ...

Results for regional banks may be dreadful in the second quarter 2009, as evidenced by the companies who have already reported their results.

Regions Financial Corp. (RF), Comerica Inc. (CMA) and ZION Bancorporation (ZION) reported losses in the quarter primarily due to continued strain in their loan portfolios, as the commercial sector continues to droop in the prolonged recession.

Along with continued losses in their residential mortgage, home equity and consumer loan portfolios, these banks are also showing continued distress in their residential and commercial development loans, as well as commercial real estate loans.

Large-cap center banks and brokerage firms like Goldman Sachs (GS), Bank of America (BAC) and JPMorgan Chase (JPM) were able to somewhat offset weak credit metrics by strong results in their investment banking and mortgage refinancing divisions.

Regional banks, however, are much more directly connected to the state of the economy and the

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For Immediate Release

Chicago, IL - June 10, 2009 - Zacks.com releases the latest Industry Outlook. Today's interview is with senior analyst Eric Rothmann, who talks about the Financials Industry, including Huntington Bancshares Inc. (HBAN), MGIC Investment Corporation (MTG) and MBIA Inc. (MBI).

A synopsis of today's Industry Outlook is presented below. The full article can be read at http://at.zacks.com/?id=2678.

We suspect that the recent improvement in share prices for financial stocks has gotten a bit ahead of the earnings and growth prospects over the near term. Considering the high level of unemployment and with foreclosures gnawing at prime mortgages, we continue to think the pay-day lenders and pawnbrokers still represent an opportunity, currently.

While improvements have been noted, sightings of "green shoots" in the economy may have resulted in an overzealous response, as we continue to fail to

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Even though some financial institutions are ready, willing and able to return the funds received through the Troubled-Asset Relief Program (TARP), the sticking point remains what the government is willing to accept and what the financial institutions are willing to pay for the warrants attached to the preferred stock. While financial institutions have experienced a rebound over the recent couple of months, we note there are still a number of concerns that will continue to overhang the industry for a number of quarters: Unemployment continues to remain extremely high, to within about a half a percent of the 10% level, as such the delinquency rates on prime loan home mortgages has increased. The 1Q09 moratorium on home foreclosures has been lifted and the level of new foreclosures has started to rise again. Consumer loan delinquencies have been on the rise. Commercial loan issues have been on the risk. While ...

Even though some financial institutions are ready, willing and able to return the funds received through the Troubled-Asset Relief Program (TARP), the sticking point remains what the government is willing to accept and what the financial institutions are willing to pay for the warrants attached to the preferred stock. While financial institutions have experienced a rebound over the recent couple of months, we note there are still a number of concerns that will continue to overhang the industry for a number of quarters: Unemployment continues to remain extremely high, to within about a half a percent of the 10% level, as such the delinquency rates on prime loan home mortgages has increased. The 1Q09 moratorium on home foreclosures has been lifted and the level of new foreclosures has started to rise again. Consumer loan delinquencies have been on the rise. Commercial loan issues have been on the risk. While ...

Even though some financial institutions are ready, willing and able to return the funds received through the Troubled-Asset Relief Program (TARP), the sticking point remains what the government is willing to accept and what the financial institutions are willing to pay for the warrants attached to the preferred stock. While financial institutions have experienced a rebound over the recent couple of months, we note there are still a number of concerns that will continue to overhang the industry for a number of quarters: Unemployment remains extremely high, to within about a half a percent of the 10% level; as such the delinquency rates on prime loan home mortgages has increased. The 1Q09 moratorium on home foreclosures has been lifted, and the level of new foreclosures has started to rise again. ...

Highlights include Citigroup, Inc. (C), Bank of America Corp. (BAC), Huntington Bancshares Inc. (HBAN), Wells Fargo & Co. (WFC), U.S. Bancorp (USB), Regions Financial Corp. (RF) and Goldman Sachs Group, Inc. (GS).Government Double-Speak on Bank Capital Levels ContinuesLate last week, the Federal Reserve release its broad-brush methodology for the long-awaited "stress tests" on the 19 largest financial institutions in the country. In a White Paper, the Federal Reserve stated that while most U.S. banking organizations currently have capital levels well in excess of the amounts required to be well capitalized, losses associated with the deepening recession and financial market turmoil have substantially reduced the capital of some banks.The conclusion: it would be prudent for large financial institutions to hold additional capital to provide a buffer against higher losses than generally expected, and still remain sufficiently capitalized over ...

For Immediate Release

Chicago, IL - April 3, 2009 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Research In Motion (RIMM), Huntington Bancshares, Inc. (HBAN), Franklin Credit Management Corp. (FCMC), Intel Corp. (INTC) and Huaneng Power International (HNP).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579.

Here are highlights from Thursday's Analyst Blog:

RIMM Beats, Soars

Shares of Research In Motion (RIMM) were up more than 21% after the close on Thursday as the company reported fourth-quarter results that topped consensus estimates.

We maintain our buy rating as the company continues

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Earlier today, Huntington Bancshares, Inc. (HBAN) announced it has restructured its credit relationship with the subprime lender Franklin Credit Management Corp. (FCMC). HBAN acquired this relationship through its acquisition of Sky Financial Group in 2007.Originally, HBAN had $1.5 billion in problem loans from the FCMC. This restructuring eliminates the last batch, totaling $615 million. It represents a positive development for the potential continued independence of HBAN, and will result in a one-time $160 million after-tax benefit (approximately $0.40 per share) and a 29 basis-point increase in the common equity ratio.While this is a definite move in the right direction, the inter-day move of more than 10% in the share price of HBAN only equates to approximately $0.20 per share. Given the economy pressures that have yet to be eliminated, we continue to view the shares of HBAN as a Sell and await the ...

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