Financial Sector Review: Big Bank Settlement, Travelers Earnings

Regions Financial Corp. (NYSE:RF): Tier 1 and Tier 1 common capital ratios remained healthy, ending the quarter at an estimated 13.2 percent and 8.5 percent, respectively, and on a Basel III basis were estimated to be 7.7 percent and 11.3 percent, above the respective 7 percent and 8.5 percent minimum requirements. The company’s liquidity position at both the bank and the holding company remains strong as well. As of December 31, 2011, the company’s loan-to-deposit ratio was 81 percent.

The shares closed at $5.23, up $0.31, or 6.3%, on the day. Its market capitalization is $6.58 billion.

TCF Financial Corporation (NYSE:TCB): Provision for credit losses was $59.2M, down from $77.6M in 4Q10 and up from $52.3M recorded in Q3. Net loan and lease charge-offs were $57.9M, or 1.63%, annualized, of average loans and leases, down from $64.9M, or 1.75%, annualized, in 4Q10 and up from $53.4M, or 1.48%, annualized, in Q3.

The shares closed at $10.57, down $1.05, or 9.04%, on the day. Its market capitalization is $1.69 billion.

The Travelers Companies (NYSE:TRV): Reports Q4 GAAP combined ratio 95.9%, book value per share $62.32.

The shares closed at $58.00, down $2.29, or 3.8%, on the day. Its market capitalization is $23.94 billion.

Bank of America Corp (NYSE:BAC), Citigroup Inc. (NYSE:C), JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Company (NYSE:WFC): California, which many analysts consider to be a key participant of any meaningful mortgage deal, has yet to signal whether it will accept the $25B settlement with the nation’s biggest banks that is currently on the table, reported The Los Angeles Times.

BAC shares closed at $7.29, up $0.04, or 0.55%, on the day. Its market capitalization is $76.81 billion.

C shares closed at $29.90, up $0.05, or 0.17%, on the day. Its market capitalization is $87.42 billion.

JPM shares closed at $37.66, on the day. Its market capitalization is $142.08 billion.

WFC shares closed at $30.54, down $0.38, or 1.23%, on the day. Its market capitalization is $160.72 billion.

UnitedHealth Group Inc. (NYSE:UNH): The Obama administration plans to continue implementing the president’s healthcare law, even if the Supreme Court strikes down the individual mandate portion of the legislation, Health and Human Services Secretary Kathleen Sebelius said last night, according to The Hill, which cited the transcript of Sebelius’ interview on The Daily Show. The government would find alternative methods of encouraging healthy people to obtain insurance if the individual mandate is struck down, Sebelius said, according to the publication.

The shares closed at $51.33, down $1.1, or 2.1%, on the day. Its market capitalization is $54.72 billion.

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To contact the reporter on this story: Stella Mariz at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com