Zions Bancorp ( ZION) climbed Friday after the Salt Lake City-based bank reported a 22% gain in second-quarter earnings. The company earned $145.3 million, or $1.35 a share, compared with $118.8 million, or $1.30 a share a year ago. The most recent quarter includes an after-tax merger expense of $5.6 million, or 5 cents a share, related to the acquisition of Amegy Bancorp. Analysts polled by Thomson Financial were looking for earnings of $1.37 a share, excluding the charge. Net interest income for the quarter totaled $442.3 million compared with $336.1 million a year ago. Noninterest income increased 30% over the year ago figure to $137.8 million. The net interest margin was 4.64% compared with 4.60% a year ago. The stock also received analyst upgrades from Sandler O'Neill and Friedman Billings Ramsey. Shares gained $3.14, or 4%, to $82.03. UnionBanCal ( UB) sank after the San Francisco-based bank reported a 2% drop in profits, missing Wall Street's second-quarter earnings expectations. The company reported income of $182.9 million, or $1.26 a share, compared with $187.2 million, or $1.27 a share a year ago. Wall Street was looking for earnings of $1.27 a share. Net interest income was $469 million in second quarter 2006, up $9 million, or 2%, from a year ago, primarily due to strong growth in loans, the company said. Noninterest income was $219 million, up $16 million, or 7.7 percent, from a year ago. The bank's noninterest expense rose 6% to $413 million. Commercial loans rose 22% and residential loans increased 14%. Average noninterest bearing deposits were flat in sequential quarters, while interest bearing deposits increased 3.8%. Shares fell $4.38, or 6.77%, to $60.28 in recent trading. Shares of Capital One Financial ( COF) declined after the Virginia-based bank's second-quarter profits rose 4%, which fell short of analyst expectations. Capital One earned $552.6 million, or $1.78 a share, up from $531.1 million, or $2.03 a share, a year earlier. The results were pulled down by the company's United Kingdom operations, which Capital One said is being hit by a worsening credit environment. The company recorded a writedown related to the UK operation that shaved 16 cents a share off earnings. Analysts, on average, had expected earnings of $2.06 a share. Capital One backed its forecast for 2006 earnings of $7.40 to $7.80 a share. Analysts see earnings of $7.91 a share for the year. Shares were off $8.89, or 10%, to $77.28 recently.
North Fork Bancorp ( NFB), which is being acquired by Capital One, slipped after the Melville, N.Y.-based company saw a 9% drop in second-quarter earnings because of weakness in its mortgage business. The bank posted income of $221 million, or 48 cents a share, down from $242 million, or 51 cents a share, a year ago. Analysts were looking for earnings of 47 cents a share. Net interest income totaled $429.9 million, down from $462.1 million. Deposits totaled $36.8 billion, down $879 million from the previous quarter. Shares fell $1.89, or 6.2%, to $28.47 recently. Flagstar Bancorp ( FBC) sank after the Troy, Mich.-based bank reported a 3% gain in second-quarter earnings, but a decline in net interest income. The company reported earnings of $28.6 million, or 44 cents a share, compared with were $27.8 million, or 43 cents a share, a year ago. Earnings exceeded the Thomson Financial forecast of 36 cents a share. But investors were disappointed by a 13% decline in net interest income to $50.7 million. After the earning release, an analyst from Oppenheimer & Co. downgraded the stock. Mark Hammond, the bank's president and CEO, said, "Competitive price pressures on deposits and loans, as well as the flat yield curve, continued to strain net interest margins and loan sale margins." Shares fell $1.46, or 9.20%, to $14.41 recently.