Financial stocks were hit harder than most on Friday amid poor employment data that put the market in a generally somber mood. The NYSE Financial Sector Index underperformed both the Dow Jones Industrial Average and the S&P 500 with a 2.8% slide to 7,893.94, in part thanks to more woes at Citigroup ( C). Keefe Bruyette analyst Diane Merdian estimated a more than 50% likelihood that the New York banking giant will cut its dividend , and she also amped up fourth-quarter expectations for mortgage-related writedowns at between $15 billion and $16 billion vs. the prior estimate of $11 billion. That should pressure a quarterly loss of $1.16 a share, said Merdian. Last week, a Goldman Sachs analyst -- who also had originally estimated Citi's writedown number at $11 billion -- ratcheted that figure up to $18.7 billion. Regions Financial ( RF) shared in the credit-crunch misery, plunging 10.7% to $20.80, after the Alabama bank said it will set aside some $360 million in the fourth quarter to cover bad credit, compared with $270 million last quarter. The provision, the girth of which is largely due to Regions' souring portfolio of homebuilding loans, comes to 1.45% of total loans vs. 1.19% last quarter. Huntington Bancshares ( HBAN), of Ohio, lost ground on news it agreed to a debt-restructuring of borrower Franklin Credit Management ( FCMC) -- which, among other things, included slashing roughly $300 million off Franklin's debt to Huntington.