City Bank posted a quarterly earnings increase of 5.26 percent for the period ended Dec. 31. Annual earnings showed a stronger increase of 12.15 percent, the Lynnwood-based bank reported. For the year, the company earned $41.5 million, officials said. That’s up from $37 million for 2006. Net income for just the quarter was $10.19 million, an increase of $509,000 compared to the final quarter of 2006. The company earned $9.68 million during the final quarter of 2006. Net interest income after provision for credit losses was $79.97 million for the 12 months ended 2007, compared to $72.64 million for the prior period in 2006, reflecting an increase of 10.09 percent. The increased net interest income was due to continued growth in average loan balances, which increased from $876.17 million in 2006 to $1.08 billion in 2007.
Housing slump affects behavior
The Federal Reserve’s new snapshot of business conditions around the country, released Wednesday, suggested that the strains from a persistent housing slump and harder-to-get credit are affecting the behavior of individuals and businesses alike — making them more cautious. The report comes as a recent string of economic indicators — ranging from a plunge in retail sales to a big jump in the unemployment rate — stokes worries that the country is heading for its first recession since 2001.
Loan losses hurt big banks
The bill for America’s excessive borrowing during the housing boom has arrived, and more people are having trouble paying it. JPMorgan Chase &Co. and Wells Fargo &Co., two of the nation’s biggest banks, on Wednesday joined a growing chorus warning that the subprime mortgage mess is just the start of a sweeping lending crisis. And some fear that consumers falling behind on all kinds of loan payments could tip the economy’s scale toward recession. This has caused three of the top five U.S. commercial banks that have already reported damaging fourth-quarter results to set aside some $12.5 billion to cover future loan losses.
Oracle buys BEA Systems
Notching another conquest in its push to create a one-stop shop for business software, Oracle Corp. is snapping up rival BEA Systems Inc. for $8.5 billion in a deal culminated after several months of acrimony. The acquisition announced Wednesday extends a three-year spree in which Oracle has spent about $35 billion buying dozens of its smaller competitors. San Jose, Calif.-based BEA represents Oracle’s most expensive purchase since it paid $11.1 billion for PeopleSoft Inc. in early 2005.
Oil energy futures drop below $90
Energy futures fell Wednesday, at times dropping below $90 a barrel after the government said crude oil supplies jumped unexpectedly last week. In its weekly inventory report, the Energy Department’s Energy Information Administration said crude oil supplies rose by 4.3 million barrels last week, the first increase since Nov. 9. Analysts surveyed by Dow Jones on average expected a decline of 300,000 barrels.
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