Quarterly earnings reports released yesterday underscore the lingering illnesses afflicting some of the largest, best-known U.S. banks and the comparatively ruddy health of some smaller regional lenders, the Wall Street Journal reported today. Bank of America Corp., the second-largest U.S. bank by assets, posted a 63 percent decline in fourth-quarter net income, thanks to mortgage-related legal costs. At Citigroup Inc., the No. 3 U.S. bank, net income rose 25 percent from a year earlier but fell far short of Wall Street analysts' expectations, as profit was squeezed by low interest rates. Shares of Bank of America dropped 4.2 percent and Citigroup fell 2.9 percent yesterday. Meanwhile, a regionally diverse group of smaller lenders has been thriving with a mix of simpler businesses and sharper focus on local customers. The group includes PNC Financial Services Group Inc. of Pittsburgh, Fifth Third Bancorp of Cincinnati and BB&T Corp. of Winston-Salem, N.C. All three posted results that showed rising revenue, solid profit and expansion in lending volume.
