Don't Forget the Regionals

" Welcome back to squawk on the street so regional banks you know in the nineteen banks are us stress tested and they are putting their various buckets of which are doing better and which are going to need capital. Don't forget a lot of regional banks are going to be in. KeyCorp EDT suntrust fifth third let's start with fifth third this morning because that company is out with its earnings. The stock of course in the low single digits and the market cap out also down as you might expect sharply in the two. Billion dollar range at the end of the day it was so what's analysis sang with some modest beat. Mortgages mortgages mortgages that's been the key here in this earnings season for many thanks -- Fargo bank America and fifth third there it is loss of four cents an income is he right there."

" In operating revenues down 6% year over year. Not too bad tangible book was up about 1% to eight dollars and 79 cents. But they did of course have an increase in nonperforming assets as you would expect our core deposits so also up."

" 4% tier one capital ratio now at ten point 9% there's UT CE -- tangible common equity. To your overall assets at four point 2% in the fourth quarter loss again after accounting and loan loss provisions and and the government -- six million dollars. In preferred."

" Dividends. All right let's and one out of sun trust. Once one of the giants and it's still a giant down in south."

" Dependent to a large extent -- and commercial real estate realistic there it is now a lot of this loss was due to a one time not impairment charge for Goodwill."

" After tax Goodwill impairment charge of over 700 million dollars so when you back that I can get closer to about 46 cent a 46 cent loss which."

" As more -- less a lot of analysts seemed to be thinking about or expecting. When he came to well to their estimates of what suntrust. What are must take a look deeper into the report as well commercial deposits of five point 2% the tier one capital ratio 11%."

" Mark to market losses they took -- 287 million dollar hit especially and I backed securities that they purchased -- about seven."

" Mortgage production income I mean this is the story here this is how a number of these banks are performing at least. I would say well -- sort of perhaps earning their way out of some of their problems -- great deal they are on the mortgage front as we all know a lot of refinancings and the alike but the larger question -- want to Goldman Sachs brings up this morning is stress tests and based on what we know at this point we may be looking and as much as two point three trillion dollars and ultimate losses right. And it looks like commercial loans and commercial real estate is going to be treated more harshly than credit cards home equity and even mortgages."

" And so these regionals that we were just talking about. May be hurt."

" Or may take a harder hit on the stress test then do the big banks we shall see we're gonna get our answers soon."