Sector Snap: Shares Of Regional Banks Mixed

NEW YORK (AP) — Shares of regional banks were mixed Wednesday, as analysts weighed in on the latest round of first-quarter earnings reports, noting that some banks are suffering more than others from rising credit losses.

KeyCorp was among the biggest decliners, falling 79 cents, or 11.2 percent, to $6.26 in afternoon trading, after a BMO Capital Markets analyst downgraded the shares to "Market Perform" from "Outperform."

Analyst Peter Winter said the outlook for the Cleveland-based bank has gotten worse, with problem assets spreading to other loan portfolios. He expects the bank will need to build up its loan loss reserves much more than originally forecast.

Winter now anticipates a loss of $2.77 per share for the full year, down significantly from a prior estimate of a loss of 71 cents per share. He also cut his target price on the stock by $3 to $8.

On Tuesday, KeyCorp said it swung to a loss in the first quarter due to higher credit costs. The bank also chopped its dividend to a penny a share from 6.25 cents.