Earnings: WASH STL UBCP FCBC XRX

Xerox, a LT selection, reported adjusted earnings for the 4th quarter of 23 cents per share on revenues of $5.5 billion and reaffirmed its 2012 guidance for an adjusted E.P.S. of $1.12 to $1.18. SEC Filed Press Release

Markit's manufacturing index for Germany declined to 46.3 in April from 48.4 in March. This is a new 33 month low. Markit Any number below 50 indicates a decline. The Eurozone Manufacturing PMI sank to 46, a 34 month low. PressRelease 

Banco Santander (STD) was put on the GS's conviction buy list and upgraded to overweight at J P Morgan.  MarketWatch

Health Management, a LT selection, reported adjusted earnings per share of 24 cents for the first quarter, up from 22 cents in the year ago quarter. Same hospital revenues increased 5.7% to $1.326 billion. The consensus estimate was for 21 cents.

Home prices fell .8% in both the 10 and 20 metropolitan areas according the Case-Shiller release yesterday. Prices are about where they were in 2002 for the 20 metropolitan area index. On a non-seasonally adjusted basis, the two largest month-over-month declines were Chicago and Atlanta at -2.5%.  

Bar Harbor Bankshares (own) increased its quarterly dividend to 29 cents per share.

Fortunately for the entire stock market, Apple reported good results after the close yesterday.

1. Washington Trust (WASH)(own 50 shares: Regional Bank Basket Strategy): WASH reported first quarter net income of $8.4 million or 51 cents per share, up from 42 cents per diluted share in the 2011 first quarter. The consensus estimate was for 48 cents. 

As of 3/31/12, the net interest margin was 3.27%; the tangible equity to tangible assets ratio was at 7.53%; the total risk based capital ratio was 13.22%; return on average assets was 1.14%; nonaccrual loans to total loans stood at .9%; and the allowance for loan losses to nonaccrual loans was 154.88%. 

Bought 100 WASH at $15.26 Sold 50 of 100 WASH @ 22.44

Washington Trust Bancorp rose 63 cents in trading yesterday to close at $23.65. 

2. Sterling Bancorp (STL)(own 88 common shares as part of the Regional Bank Basket Strategy and 200 shares of the TP STLPRA-ROTH IRA): Sterling Bancorp reported net income for the 2012 first quarter of $4.8 million or 15 cents per share, up from 12 cents in the year ago quarter. One news service claimed that the E.P.S. number beat expectations by 1 cent, while YF had the consensus at 15 cents which would be a meet rather than a beat.   

As of 3/31/12, the net interest margin was 4.07%; nonaccrual loans to total loans stood at .43%; the allowance for loan losses to nonaccrual loans was 313.55%; the tangible equity to tangible assets ratio was 8.17%;  and the total risk based capital ratio was 13.15%. 

I recently bought back a minor position in STL at $8.98. I previously sold 50 share at $10.5 bought at $6.58.

Trust Preferred Securities: Links in One Post

3. First Community Bancshares (own 50 shares: Regional Bank Basket Strategy): First Community Bancshares reported net income of $5.72 million available to common shareholders, or 31 cents per share for the first quarter, down 1 cent from the 32 cents per diluted share earned for the 2011 first quarter. Core earnings per share for the 2012 first quarter was 32 cents, up from 30 cents. The consensus estimate, made by 4 analysts, was for 27 cents.   

The efficiency ratio improved to 57.18% from 63.43% in the 2011 first quarter. 

As of 3/31/12,  the net interest margin was 3.91%; NPLs to total loans stood at 1.97%; the allowance for loan losses to NPLs was 94.56%; the total risk based capital ratio was 18.72%; and the "core" return on average assets was 1.15%.

FCBC is a minor position in the regional bank basket strategy. I bought back 50 shares at $12.5 after selling 50 at $14.44.

First Community Bancshares also increased its quarterly dividend from 10 cents to 11 cents.

First Community Bancshares rose 42 cents in trading yesterday to close at $13.66.

4. United Bancorp (UBCP)(own 161+: Regional Bank Basket Strategy): United Bancorp, a very small bank operating in Ohio, reported net income for the 1st quarter of $760,833, up 3.1% from the year ago quarter. The E.P.S. number was 15 cents.  The current quarterly dividend is 14 cents per share. The payout ratio continues to be uncomfortably close to 100% at 93.33%. 

As of 3/31/2012, the net interest margin was 3.97% (down from 4.18% in the 2011 first quarter); NPLs to total loans stood at 1.63%; the allowance for loan losses to NPLs was at 64.09%; and the return on average assets was .71%.

The Board of United Bancorp recently declared the regular quarterly dividend of 14 cents per share. I am reinvesting the dividend to buy more shares. I have bought 150 shares in three 50 share lots, and have acquired another 11+ shares through reinvested dividends. All shares are held in one of my satellite taxable accounts. 

Since my highest cost shares were bought first, I may dispose of them to lower my average cost per share and to harvest a small gain. Bought 50 UBCP at $8.49 Bought 50 UBCP @ 8.13 Bought 50 UBCP at 7.99 As long as the dividend is not cut, I am not likely to sell 50 shares for less than $9.75.

United Bancorp rose 11 cents in trading yesterday to close at $9.71.