7/2/2008

Regional and small banks are expected to post losses from their mounting volume of troubled construction loans made primarily to home builders. Of the $631.8 billion in construction loans outstanding at the end of the first quarter, $45.4 billion was delinquent. "Across the industry, the second quarter is going to be a tough quarter," said Keith Maio, chief executive of the National Bank of Arizona, a unit of Zions Bancorp.

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