6. Sterling Financial
Shares of Sterling Financial (STSA) of Spokane, Wash., closed at $12.32 Wednesday, down 35% year-to-date.
The company had $9.2 billion in total assets as of June 30, with a nonperforming assets ratio of 5.38%, declining from 6.72% the previous quarter and 10.47% in June 2010, according to SNL Financial.The company received $303 million in TARP money in December 2008. The Treasury's preferred shares in Sterling Financial were all converted to common shares in August of last year. Second-quarter net income was $7.6 million, or 12 cents a share, compared to a loss to common shareholders of $58.2 million, or $73.91 a share, in the second quarter of 2010, when the company took a $70.8 million provision for loan losses, while selling a significant portion of its nonperforming loans. The second-quarter 2010 EPS figure reflects a 66-for1 reverse stock split that took place in November. The provision for loan losses was $10 million during the second quarter, which was the same as in the first quarter. Sterling's second-quarter annualized ratio of net charge-offs to average loans was 2.23% and reserves covered 3.66% of total loans as of June 30, "staying ahead of the pace" of loan losses. The company's regulatory total risk-based capital ratio of 18.20% as of June 30 was the highest among this group of bank and thrift holding companies. The shares trade for 12.5 times the consensus 2012 EPS estimate of $1.09, among analysts polled by FactSet, and 0.9 times their June 30 tangible book value of $12.80, according to SNL. Two of the three analysts covering Sterling Financial rate the shares a buy. The remaining analyst has a neutral rating.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV