Cleveland-based Key Corp announced first quarter losses this morning of $488 million, a reversal from a profit of $218 million in the first quarter one year ago.
Key blames the loss partly on a large increase in what it set aside toward potential bad loans, after determining that loan losses were $875 M, a five fold increase over last year. The bank will cut its dividend to shareholders as a result.
Columbus-based Huntington Bancshares says it lost $2.4 billion in its first quarter, but says that is primarily from writing off bad loans IT took on when it purchased Sky Bank in 2007. Sky owned subprime mortgage lender Franklin Credit.
National City parent PNC Financial releases its first quarter numbers Wednesday, during its' annual shareholders meeting. Fifth Third numbers also come out Wednesday, while First Merit numbers are not due until the middle of next week.
Minnesota based U.S. Bancorp, with many branches in Ohio, reported that its first-quarter profits plunged 52 percent on rising losses from bad loans.
