The latest quarter included a loss of $22.6 million, or 16 cents a share, to pay a penalty to the U.S. Department of Justice and for related expenses.
UnionBanCal had said it would be fined by federal authorities for failing to detect money from suspected drug sales after the bank had assured regulators that compliance programs were in place.
Their 4Q estimate is 1.07-1.12 vs Analysts expectation of $1.16.
Nonperforming assets at September 30, 2007, were $53 million, or 0.10 percent of total assets. This compares with $30 million, or 0.06 percent of total assets, at June 30, 2007, and $48 million, or 0.09 percent of total assets, at September 30, 2006.
In third quarter 2007, the total provision for credit losses was $20 million, compared with a total provision for credit losses of $5 million in second quarter 2007, and zero in third quarter 2006. The total provision for credit losses is comprised of the provision for loan losses and the provision for losses on off balance sheet commitments, which is classified in noninterest expense. The increase in total provision expense in third quarter 2007 was primarily due to loan grade migration in certain sectors of the real estate portfolio and strong loan growth at the end of the quarter. In third quarter 2007, net charge-offs were $2 million, unchanged from second quarter 2007 and third quarter 2006.
At September 30, 2007, the allowance for credit losses as a percent of total loans and as a percent of nonaccrual loans was 1.10 percent and 853 percent, respectively. These ratios were 1.11 percent and 1,457 percent, respectively, at June 30, 2007, and 1.14 percent and 850 percent, respectively, at September 30, 2006.
Compucredit, the largest subprime credit card specialist, report soon. They should be a barometer of how the low end is holding up in the credit card recievables game. They have a 32% loss ratio during good times, but buffer it by charging up to 50% in annual fees and an additional late fee that totals nearly 100% of the prospective loan amount. I feel that the real property decline will eventually put some real pressure on the other personal credit lines, especially the lower end of the spectrum.
On the note of real property trends, this is an analysis of pricing trends over the last 20 years and projected forward 4 years in 10 major MSAs. Notice how dramatic this lates boom is compared to the last bull run. Then notice how long it took for the relatively tame bull run's requisite bear run to peter out. It looks like you will have to post those ABX charts for some time now.
Federal Reserve Bank of Kansas City President Thomas Hoenig said he's optimistic'' on the outlook for the U.S. economy, though policy makers at the same time must remainalert.
Federal Reserve Bank of Cleveland President Sandra Pianalto said economic growth and employment have been ``holding up'' during the deepening housing recession.
So to hell with the gloom. We need to party down and ignore all the naysayers.
I guess the plan to issue credit cards and mortgages to illegal aliens is now on hold.
I loved the comcast post. I've felt like doing what she did on many occasions. Comcast has a monopoly on high speed internet where I live and they act like it. If a cable box has an issue (which most of them do), they wrap it up and give it to the next person; hoping they won't complain. I've been through about 10 of their HDTV DVR's. I can't wait until Verizon FIOS is available. It can't be worse than Comcast.
in Connecticut the housing slide is just beginning. Believe me, it will become worse here and elsewhere. I would hardly take any FED official's word as gospel truth- since even a year ago they all said there was no housing bubble, we had nothing to worry about and the economy was fine.
Recorded a provision for credit losses of $408 million reflecting modest deterioration in credit quality, a more uncertain credit environment and loan growth. Net charge-offs were $206 million, or an annualized 0.19 percent of average net loans. Total nonperforming assets including loans held for sale were $3.0 billion, or 0.63 percent of loans, foreclosed properties and loans held for sale.
I've stopped counting how many times the fed has cried "relax" and bad news follows. Did they ever think that by repeatedly failing to level with the public they will create the very panic and mistrust they seem to be so desperately seeking to avoid?
On a pre-tax basis, profit was down $5 million, or 3 percent, compared with the third quarter of 2006. The decrease was principally due to the $8 million decrease in other revenue items and a $6 million increase in provision expense,
And they do more financing:
New retail financing was a record $3.58 billion, an increase of $619 million, or 21 percent, from the third quarter of 2006. The increase was the result of increased new retail financing primarily in our Europe, North America and Asia-Pacific operating segments.
Past dues over 30 days at September 30, 2007 were 2.52 percent compared to 1.89 percent at September 30, 2006, due primarily to the softening of the U.S. housing industry. Write-offs, net of recoveries, at September 30, 2007 were $15 million compared to $11 million at September 30, 2006. Although these indicators reflect increases over the prior year, they are below historical averages.
So they increase credits just as credit market worsens. Good move for a manufacturing co (GMAC? GE?)....
Loved that article re: Comcast and the Hammer yesterday. Having just been driven to the only full-on bout of screaming in my adult life by the same band of lying scumbags I'm hard-pressed to understand why I didn't go the hammer route myself. In hindsight it seems so obvious.
Oct. 19 (Bloomberg) -- Credit-default swaps rose the most in three months this week as plans for an $80 billion fund to rescue structured investment vehicles failed to prevent two funds warning they may be unable to repay all of their debt.
Preserve, it might be because consumers have nowhere else to turn for the time being, having maxed the home atm. But as these new earnings reports show, it may be that losses from credit-card lending begin to outweigh profits from fees, which of course may lead to tighening of credit-card lending standards.
It's one thing to tighten mortgage lending, but when credit-card lending contracts, there goes your consumer lifeblood...
Preserve,
I have believed the reform act was specifically enacted by Congress as cost-free risk management for expanded consumer credit.
It did not pass the smell test for me as arguements in favor of the act were emotionally based (i.e.: this person bought all this stuff then went bankrupt...this raises credit card rates for working people...yada yada" with no statistics or economic rational.
Far be it for me to defend Comcast (I won't -- I hate them), but please research FIOS before you take the plunge. As good as the service sounds, there are two potential issues:
They don't tell you this, but they do throttle you down if they think you are using too much bandwidth. Like to download music? Yer gettin' throttled.
They have been known to remove your phone line when they install FIOS. After all, why would you need that old thing if you have this shiny new fiber optics line? Well, fine, as long as you stick with Verizon forever. If you ever decide to switch to DSL -- oops, no more phone line. Verizon has you, and they have you forever, and they know it.
Just FYI. I'm not a Verizon customer, I do not have FIOS, but I've read enough stories over the last year to provide this head's up.
FFDIC - thanks for the article about Mona. That reminds me I need to call Dish network. Anyone know where their call center is, in case I need to resort to 'hammertime'?
back on topic - from what I recall, the North Fork acq. was done primarily for the sake of getting Greenpoint, hence jumpstarting their foray into mortgages. I suppose timing is everything.
Federal Reserve Bank of Cleveland President Sandra Pianalto said economic growth and employment have been ``holding up'' during the deepening housing recession.
So to hell with the gloom. We need to party down and ignore all the naysayers.
Looks like someone is hitting the Bong this morning
"Even my dog..." is no joke. I'd love to know how many fraudulent cards are out there right now. I know of one case where a person went around making some cash purchases but giving a fake name to see how much junk mail would be sent to his home under the alias. Soon, the fictitious person was getting credit card offers. Soon, the real person obtained a credit card in the fictitious person's name - "just to see if it was possible". For fear of getting caught, he promptly cancelled the account. I wonder how many people did the same thing thinking it was harmless, actually used the credit, and are now feeling squeezed...
I did not realize Cap One acquired North Fork Bancorp, which operates banks in NY, NY & CT. How is the bank doing?
CNNMoney.com: 404 Page Not Found
UnionBanCal posts lower 3rd qtr net; beats view
UPDATE 1-UnionBanCal posts lower 3rd qtr net; beats view
| Reuters
The latest quarter included a loss of $22.6 million, or 16 cents a share, to pay a penalty to the U.S. Department of Justice and for related expenses.
UnionBanCal had said it would be fined by federal authorities for failing to detect money from suspected drug sales after the bank had assured regulators that compliance programs were in place.
Their 4Q estimate is 1.07-1.12 vs Analysts expectation of $1.16.
UnionBanCal Corporation Reports Third Quarter Earnings Per Share from Continuing Operations of $1.08
has credit quality in detail:
Nonperforming assets at September 30, 2007, were $53 million, or 0.10 percent of total assets. This compares with $30 million, or 0.06 percent of total assets, at June 30, 2007, and $48 million, or 0.09 percent of total assets, at September 30, 2006.
In third quarter 2007, the total provision for credit losses was $20 million, compared with a total provision for credit losses of $5 million in second quarter 2007, and zero in third quarter 2006. The total provision for credit losses is comprised of the provision for loan losses and the provision for losses on off balance sheet commitments, which is classified in noninterest expense. The increase in total provision expense in third quarter 2007 was primarily due to loan grade migration in certain sectors of the real estate portfolio and strong loan growth at the end of the quarter. In third quarter 2007, net charge-offs were $2 million, unchanged from second quarter 2007 and third quarter 2006.
At September 30, 2007, the allowance for credit losses as a percent of total loans and as a percent of nonaccrual loans was 1.10 percent and 853 percent, respectively. These ratios were 1.11 percent and 1,457 percent, respectively, at June 30, 2007, and 1.14 percent and 850 percent, respectively, at September 30, 2006.
DannyHSDad - Yes, Union is under an OCC C&D which replaced a MOU and is attached below for review.
http://www.occ.treas.gov/FTP/EAs/ea2007-110.pdf
What's in your wallet?
Nuttin'!
Tanta's mom, 75, hammers home her complaint with Comcast Cable "what a bunch of sub-moronic imbeciles."
404 Error, No such article | Chron.com - Houston Chronicle
Compucredit, the largest subprime credit card specialist, report soon. They should be a barometer of how the low end is holding up in the credit card recievables game. They have a 32% loss ratio during good times, but buffer it by charging up to 50% in annual fees and an additional late fee that totals nearly 100% of the prospective loan amount. I feel that the real property decline will eventually put some real pressure on the other personal credit lines, especially the lower end of the spectrum.
On the note of real property trends, this is an analysis of pricing trends over the last 20 years and projected forward 4 years in 10 major MSAs. Notice how dramatic this lates boom is compared to the last bull run. Then notice how long it took for the relatively tame bull run's requisite bear run to peter out. It looks like you will have to post those ABX charts for some time now.
Reggie Middleton's Boom, Bust & Bling Blog - HAS MOVED TO REGGIEMIDDLETON.BOOMBUSTBLOG.COM!!!: Okay, I have just recharged the batteries in my crystal ball: Back tested Home Price Trends - Historical and Forecasted
Federal Reserve Bank of Kansas City President Thomas Hoenig said he's optimistic'' on the outlook for the U.S. economy, though policy makers at the same time must remainalert.
Why all the hand wringing. Everything is ok.
And here too. No problemo.
Federal Reserve Bank of Cleveland President Sandra Pianalto said economic growth and employment have been ``holding up'' during the deepening housing recession.
So to hell with the gloom. We need to party down and ignore all the naysayers.
FFDIC,
Mona! Mona! Mona!
I guess the plan to issue credit cards and mortgages to illegal aliens is now on hold.
I loved the comcast post. I've felt like doing what she did on many occasions. Comcast has a monopoly on high speed internet where I live and they act like it. If a cable box has an issue (which most of them do), they wrap it up and give it to the next person; hoping they won't complain. I've been through about 10 of their HDTV DVR's. I can't wait until Verizon FIOS is available. It can't be worse than Comcast.
James
in Connecticut the housing slide is just beginning. Believe me, it will become worse here and elsewhere. I would hardly take any FED official's word as gospel truth- since even a year ago they all said there was no housing bubble, we had nothing to worry about and the economy was fine.
Wachovia confesses:
Expired
2007 Provision for credit losses
Q3: $408M
Q2: $179M
Q1: $177M
Recorded a provision for credit losses of $408 million reflecting modest deterioration in credit quality, a more uncertain credit environment and loan growth. Net charge-offs were $206 million, or an annualized 0.19 percent of average net loans. Total nonperforming assets including loans held for sale were $3.0 billion, or 0.63 percent of loans, foreclosed properties and loans held for sale.
I've stopped counting how many times the fed has cried "relax" and bad news follows. Did they ever think that by repeatedly failing to level with the public they will create the very panic and mistrust they seem to be so desperately seeking to avoid?
Now I must go to Lowe's and buy a claw hammer..
CR, bell tolls for Wachovia, too:
- Bloomberg.com
CAT confess, too:
Expired
On a pre-tax basis, profit was down $5 million, or 3 percent, compared with the third quarter of 2006. The decrease was principally due to the $8 million decrease in other revenue items and a $6 million increase in provision expense,
And they do more financing:
New retail financing was a record $3.58 billion, an increase of $619 million, or 21 percent, from the third quarter of 2006. The increase was the result of increased new retail financing primarily in our Europe, North America and Asia-Pacific operating segments.
Past dues over 30 days at September 30, 2007 were 2.52 percent compared to 1.89 percent at September 30, 2006, due primarily to the softening of the U.S. housing industry. Write-offs, net of recoveries, at September 30, 2007 were $15 million compared to $11 million at September 30, 2006. Although these indicators reflect increases over the prior year, they are below historical averages.
So they increase credits just as credit market worsens. Good move for a manufacturing co (GMAC? GE?)....
Loved that article re: Comcast and the Hammer yesterday. Having just been driven to the only full-on bout of screaming in my adult life by the same band of lying scumbags I'm hard-pressed to understand why I didn't go the hammer route myself. In hindsight it seems so obvious.
Send in the Huns!
Note with CAT: their credit increased 21% while past due is up 33%. And write-offs are up 36%.
Good move on CAT....
Back in the early 2000's, it made sense that banks were loaning more due to lowered rates, ie lower payment obligations.
Fast forward to 2006-2007 where rates have been stale/elevated, the flow of funds report is still showing growth in Credit card loans.
Is this because of the new bankruptcy law?
SIV Concerns Trigger Worst Week for Credit in Three Months
By Hamish Risk
Oct. 19 (Bloomberg) -- Credit-default swaps rose the most in three months this week as plans for an $80 billion fund to rescue structured investment vehicles failed to prevent two funds warning they may be unable to repay all of their debt.
[snip]
Preserve, it might be because consumers have nowhere else to turn for the time being, having maxed the home atm. But as these new earnings reports show, it may be that losses from credit-card lending begin to outweigh profits from fees, which of course may lead to tighening of credit-card lending standards.
It's one thing to tighten mortgage lending, but when credit-card lending contracts, there goes your consumer lifeblood...
And just saw a news blip on AG dissing the MLEC vehicle...
Preserve,
I have believed the reform act was specifically enacted by Congress as cost-free risk management for expanded consumer credit.
It did not pass the smell test for me as arguements in favor of the act were emotionally based (i.e.: this person bought all this stuff then went bankrupt...this raises credit card rates for working people...yada yada" with no statistics or economic rational.
I can't wait until Verizon FIOS is available. It can't be worse than Comcast.
You can't imagine how good FIOS internet is - if I wasn't locked with dtv for another yr I'd be all over their tv package as well...
"Send in the Huns!"
And this time your credit card will not protect you, helpless peasant! Bwahahahahah!
Far be it for me to defend Comcast (I won't -- I hate them), but please research FIOS before you take the plunge. As good as the service sounds, there are two potential issues:
Just FYI. I'm not a Verizon customer, I do not have FIOS, but I've read enough stories over the last year to provide this head's up.
Even my dog gets offers for credit cards from Capital One, no wonder.
I have heard the same things as JustAGuy. Just as in politics, the consumer choice in communications always comes down to the lesser of two evils.
It's contained, I SWEAR TO GOD IT'S CONTAINED.
FFDIC - thanks for the article about Mona. That reminds me I need to call Dish network. Anyone know where their call center is, in case I need to resort to 'hammertime'?
back on topic - from what I recall, the North Fork acq. was done primarily for the sake of getting Greenpoint, hence jumpstarting their foray into mortgages. I suppose timing is everything.
Federal Reserve Bank of Cleveland President Sandra Pianalto said economic growth and employment have been ``holding up'' during the deepening housing recession.
So to hell with the gloom. We need to party down and ignore all the naysayers.
Looks like someone is hitting the Bong this morning
So, instead of sending dead fish with roses to Comcast, we now send hammers in the mail with roses?
"Even my dog..." is no joke. I'd love to know how many fraudulent cards are out there right now. I know of one case where a person went around making some cash purchases but giving a fake name to see how much junk mail would be sent to his home under the alias. Soon, the fictitious person was getting credit card offers. Soon, the real person obtained a credit card in the fictitious person's name - "just to see if it was possible". For fear of getting caught, he promptly cancelled the account. I wonder how many people did the same thing thinking it was harmless, actually used the credit, and are now feeling squeezed...