Ohio’s three largest banks report big quarterly losses

CINCINNATI (AP) — Ohio’s three largest banks on Thursday reported huge losses in the face of subprime lending woes and other economic challenges facing the industry.

Fifth Third Bancorp, Huntington Bancshares and KeyCorp also are struggling with rising credit costs and loan defaults.

Cincinnati-based Fifth Third reported a loss of $2.2 billion in the fourth quarter of 2008, mainly because of rising defaults on loans, charges on goodwill and credit costs.

KeyCorp in Cleveland — citing ongoing economic woes and a large, noncash accounting charge — said it lost $524 million in the quarter, while Columbus-based Huntington Bancshares reported a $417.3 million loss. Huntington also cited the tough economy plus its relationship with Franklin Credit Management Co.

Fifth Third said earnings for the three months ended Dec. 31 translate to a per-share loss of $3.82. A year ago, Fifth Third earned $16 million, or 3 cents a share.

Analysts polled by Thomson Reuters, on average, expected earnings of 1 cent a share. Those estimates typically exclude one-time gains and charges.

The company said its losses mainly were related to commercial residential builder and developer loans and consumer residential real estate loans, mostly in Florida and Michigan.

Fifth Third recorded $800 million in losses on those loans sold or transferred to held-for-sale in the fourth quarter.

Kabat also said the company continued to aggressively restructure consumer loans, with $574 million in restructured customer loans on its books at the end of the year.