This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

July's 5 Worst-Performing Big Bank Stocks

NEW YORK (TheStreet) -- While most big bank stocks recovered after a rough June, shares of nine out of the 50 largest public U.S. bank holding companies (by total assets) fell for the month. Here are the five worst performers among the group for July.

Shares of TCF Financial (TCB) of Wayzata, Minn. closed at $15.84 Friday, down 4% for July but up 17% for 2010, according to SNL Financial.

Earnings: TCF Financial reported second-quarter net income of $45 million, or 32 cents a share, improving from a profit of $33.9 million, or 26 cents a share, in the first quarter. Net income in the second quarter of 2009 was $10.3 million, or 8 cents a share.

>>>TCF Financial Beats View, Shares Drop

Capital: While TCF was a participant in the Troubled Assets Relief Program, or TARP, the company fully repaid the government in May 2009. The company raised $164.6 million in capital through a common share offering in February. TCF's Tier 1 capital ratio of 10.30% and its total risk-based capital ratio was 12.71% as of June 30. These ratios need to be at least 6% and 10% for most banks to be considered well capitalized by regulators.

Asset Quality: TCF Financial had $18 billion in total assets as of June 30. Nonperforming assets -- including nonaccrual loans and repossessed real estate -- comprised 3.04% of total assets as of June 30, increasing from 2.75% the previous quarter and 2.40% a year earlier. The company's ratio of net charge-offs to average loans for the second quarter was 1.30% and loan loss reserves covered 1.72% of total loans. Although the increase in problem assets ran counter to the trend for many large banks, TCF's pace of loan losses was low when compared to the national aggregate net charge-off ratio of 2.84% for the first quarter, reported by the Federal Deposit Insurance Corp.

Prospects: Following the earnings announcement, Keefe, Bruyette and Woods analyst Eileen Rooney reiterated her "market perform" or neutral rating on the shares, but increased her 2010 earnings estimate to $1.12 a share from 83 cents a share. Rooney's 2011 earnings per share estimate is $1.13, and her 12-month target for the shares is $15.

>>>July's 5 Best-Performng Big Bank Stocks

1 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,001.22 -38.27 -0.22%
S&P 500 1,988.40 -3.97 -0.20%
NASDAQ 4,538.5510 +6.4470 0.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs