NEW YORK (
was the loser among the largest U.S. financial names on Wednesday, with shares declining 2.5% to close at $5.84.
The broad indexes gave up earlier gains after
Chairman in a speech before the Economic Club of Minnesota indicated that the central bank may have to be less accommodating in its rate policy, because "inflation picked up significantly" so far in 2012, because "prices of many commodities, notably oil, increased sharply earlier this year," and because of supply disruptions, making "the price index for personal consumption expenditures
rise at an annual rate of about 3-1/2 percent, compared with an average of less than 1-1/2 percent over the preceding two years."
Bernanke added that "inflation is expected to moderate in the coming quarters as these transitory influences wane," and that "in particular, the prices of oil and many other commodities have either leveled off or have come down from their highs."
The KBW Bank Index
declined 1 % to close at 45.32, with
Huntington Bancshares has seen its stock return 6% year-to-date, following a 19% decline in 2011.
The Columbus, Ohio, lender's shares trade for 1.2 times tangible book value, according to HighlineFI, and for 10 times the consensus 2012 earnings estimate of 59 cents, and analysts polled by Thomson Reuters. The consensus 2013 EPS estimate is 64 cents.
Barclays Capital analyst Jason Goldberg has an "Underweight" rating on Huntington Bancshares, with a $7 price target, saying on Feb. 21 after reviewing the company's annual 10-K filing that his firm is "somewhat skeptical" of Huntington's "Fair Play" strategy to grow its checking account deposits, "attempts to translate foregone revenue into improved retention and share gains," adding that he expects "minimal growth in pre-provision net revenue for the foreseeable future."
Goldberg estimates that Huntington will earn 55 cents a share in 2012, followed by EPS of 60 cents in 2013.
for a review of Huntington's fourth-quarter results.
Interested in more Huntington Bancshares? See TheStreet Ratings' report card for this stock.
Bank of America
declined 2% to close at $7.97.
In its fourth-quarter press release announcing its latest net loss of $2.4 billion,
too aim BAC, saying that "as a result of Bank of America's failure to honor its contractual obligations in a timely manner, the already high volume of Fannie Mae's outstanding repurchase requests with Bank of America increased substantially," during the fourth quarter, to "percent of Fannie Mae's outstanding repurchase requests as of December 31, 2011, compared with 45 percent as of September 30, 2011 and 41 percent as of December 31, 2010, shortly after entering into an agreement with Fannie Mae to address its then outstanding repurchase requests."
The government-sponsored mortgage giant said it was "taking steps to address Bank of America's delays in honoring Fannie Mae's repurchase requests," including a decision not to renew its "existing loan delivery contract with Bank of America at the end of January."
Bank of America had already announced last week to stop selling new first mortgage loans to Fannie Mae.
Bank of America's shares have now returned 43% year-to-date, following a decline of 58% last year. To put these returns in perspective, the 52-week return on the shares through Wednesday's market close was a negative 44%.
The shares trade for 0.7 times tangible book value and 11.5 times the consensus 2012 EPS estimate of 71 cents. The consensus 2013 EPS estimate is $1.20.
Interested in more Bank of America? See TheStreet Ratings' report card for this stock.
Written by Philip van Doorn in Jupiter, Fla.
To contact the writer, click here:
To follow the writer on Twitter, go to
Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.