Raymond James cuts EuroBancshares 2009-10 earnings estimates

Raymond James (NYSE: RJF) has decreased its 2009 and 2010 earnings per share estimates on Puerto Rican financial holding company EuroBancshares (Nasdaq: EUBK) to losses of US$0.90 and US$0.51, respectively, in light of worse-than-expected second quarter results. Raymond James previously expected a US$0.24 per share loss for EuroBancshares both this year and in 2010. In a report, Raymond James reiterated its market perform rating on the stock. EuroBancshares reported a loss of US$0.60 per share in 2Q09 compared to the Street consensus of a US$0.16 loss. Results included a one-time deposit insurance fee for US$1.3mn, an other-than-temporary impairment (OTTI) charge related to certain single non-rated TruPS (trust preferred securities) for US$2.7mn, and a gain on the sale of agency mortgage-backed securities (MBS) for US$3.5mn. A significant increase in provision and non-interest expenses and a lower-than-expected net interest margin (NIM) also contributed to the EPS miss, Raymond James said. EuroBancshares - parent of the island's smallest bank - had US$2.74bn in assets and US$140mn in stockholders' equity as of June 30.