Wednesday's Financial Winners & Losers

Financial stocks were mixed in trading Wednesday, as the market digested the latest Federal Reserve rate cut.

The rate-setting Federal Open Market Committee lowered the federal funds rate target 25 basis points to 2%, but was ambiguous about whether it would pause its rate-cutting campaign at its next meeting. The NYSE Financial Sector Index closed down 13.74 at 7,734.25.

While many financial stocks were flat, there were some big movers. Corus Bancshares(CORS Quote) stock plunged after reporting first-quarter earnings dropped from $26 million in the previous year's quarter to $4.5 million. The small-cap bank also eliminated its dividend and blamed it all on mortgages, housing and the credit markets. Shares collapsed 23.8% to $7.33, a loss of $2.29.

Midwest Banc Holdings(MBHI Quote) shares tumbled 15.9% after it announced a losing first quarter. The bank charged off $10.8 million related to a previously disclosed "large problem credit," although the bank noted that "several positive court findings and a settlement agreement with a municipality provided additional clarity on collateral values related to this credit." The stock closed down $1.94 to $10.28.

Banking giant Citigroup(C Quote) also suffered on Wednesday, after said it was selling $4.5 billion worth of common stock in a bid to shore up its capital. The dilution has investors concerned and the shares reflected this by dropping $1.05 to $25.27.

Shares of insurance provider Cinncinati Financial (CINF Quote) fell 4.3% to $35.90 after posting a loss in its first quarter. The insurer had total catastrophe losses of $43 million due to floods, hail and tornados that occurred in the South and Midwest from January to March