Regional Banks Saddled With More Loan Losses In 1Q

Huntington lost $2.4 billion in its first quarter, largely because of a $2.6 billion goodwill charge. But the Columbus, Ohio-based bank said the sagging economy throughout the Midwest markets continues to weigh on its loan portfolio, particularly residential mortgages and commercial loans. Shares jumped 29 cents, or 9.3 percent, to $3.40.

Zions Bancorp also posted a loss for the first quarter, reversing a year-ago profit, as the Salt Lake City-based bank recorded a hefty impairment charge and wrote down the value of investments.

Zions said late Monday that loans considered past due jumped to $1.77 billion, driven by commercial real estate loans in Nevada, Arizona and Texas. Zions shares plunged more than 10 percent, falling $1.40 to $11.53.

Some banks are faring better than others. Historically low interest rates have led to a spike in mortgage activity, and brokerage revenue has picked up amid the recent surge of confidence on Wall Street.

U.S. Bancorp's profit fell 61 percent, but results beat analysts' expectations as mortgage revenue more than doubled. Many banks have announced strong mortgage banking revenue for the first quarter thanks to declining interest rates and a surge in refinancing activity. U.S. Bancorp's shares jumped more than 15 percent, adding $2.48 to $18.42.