NEW YORK ( TheStreet) -- Despite all the hand-wringing about financial reform and the price weakness in the group over the past two months, bearish bank analysts are still few and far between ahead of second-quarter reporting season.

Earnings estimates have come down on many names in the past few weeks -- most notably Goldman Sachs ( GS) on the perception that trading revenue has deteriorated -- but analysts have for the most part kept their overall ratings on the stocks in place, and those ratings in general are pretty good. For instance, on all four of the money-center banks -- Bank of America ( BAC), Citigroup ( C), JPMorgan Chase ( JPM), Wells Fargo ( WFC) -- the majority of the analysts covering the stocks have either buy or strong buy ratings.

In the interest of seeing which financial names Wall Street was actually bearish about, TheStreet pulled together a list of the five banks with the largest percentage of sell ratings vs. the total number of analysts who cover the stock, using Bloomberg data as of June 28. The screen was for U.S.-based public institutions with at least $5 billion in assets and a minimum of five analysts covering the stock. The banks also had to have a share price of at least $2 a share and average daily trading volume of greater than 100,000.

Of the 78 banks that made the cut, none had a majority of analysts' rating them at sell. Doral Financial, the bank with the largest percentage of sell analysts, has one-third of the six analysts who cover it with sell ratings. On an absolute number basis, SunTrust Banks had the most sell ratingw with nine analysts, but the bank has a total of 35 analysts covering its stock, according to Bloomberg.

Also, with the exception of Valley National Bancorp, the banks that made the list had an equal number of buy and sell ratings from analysts -- more evidence of the general bullishness on bank stocks these days. Here's the list going from the smallest percentage of sell ratings to the largest.

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5. Marshall & Ilsley ( MI):

Marshall & Ilsley (M&I for short) is still suffering from credit troubles. Five, or approximately 22.7%, of the 22 analysts that cover M&I rate it at sell, according to the data.

UBS analyst Erika Penala is one of the bears. She reiterated her sell rating on the mid-cap bank in April following its first-quarter report, citing concerns that M&I's rate of credit improvement will be slower than investors expect.

While Penala is expecting construction loan losses in 2010 to be 36% of 2009's levels, she expects the pace of decline for M&I's total losses will be inhibited and the timeframe for any reserve releases will be pushed out.

M&I, while mostly located in Midwest states, also has branches in Florida and Arizona -- two of the hardest hit states during the residential housing bust. Another overhang is that the bank has yet to repay TARP-related funds.

Penala expects "core" commercial and industrial (C&I) losses to continue to climb this year, increasing "re-defaults" on M&I's residential real estate loan modifications and a protracted commercial real estate cycle.

The bank also faces revenue headwinds. "Continued portfolio run-off, elevated losses, and stagnant loan demand could pressure near term earnings , while deposit attrition from rising rates may impact longer-term," Penala told clients.

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4. Valley National Bank ( VLY):

Valley National seems to be a victim of its own good fortune.

The New Jersey-based bank is considered one of the best-in-class banks of its peer group with an excellent management team, yet one-fourth of the 12 analysts who cover Valley National have a sell rating on it. Just one analyst rates the stock at buy. Valuation seems to be the main issue. The stock currently trades at a rich 16.5 times the current consensus Wall Street earnings estimate for 2011.

JPMorgan Chase analyst Steven Alexopoulos rates Valley National at sell because he believes there is little upside to the stock over the near term compared to other banks, despite the New Jersey-based bank's "strong operating results" and interest in FDIC-assisted deals.

"While we believe VLY continues to be a good dividend play, as the industry recapitalizes and prospects of higher dividend s improve for many peers, VLY's dividend yield (currently at 4.5%) may be less of a standout," Alexopoulos wrote in an April 26 note. "Furthermore, although the company could benefit from a return to traditional M&A that was alluded to on the earnings conference call, the company's current footprint presents limited FDIC-assisted opportunities of size."

Alexopoulos summed up his thoughts on Valley National in the April 26 note by saying it's a "good bank," but it's "tough to get excited over the stock here." At that time the stock was trading above $16.

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3. SunTrust Banks ( STI):

SunTrust is yet another regional bank working through a loan book damaged by the housing bust. Nine of the 35 analysts, or 25.7%, who cover SunTrust have issued sell ratings on the bank, yet in all fairness another nine other analysts rate the company a buy, according to Bloomberg.

SunTrust's "weaker fundamentals and geographic concentration in Florida and Georgia suggest a prolonged period of credit stress that should overwhelm pre-provision earnings power, resulting in a material valuation discount to its peers," Wells Fargo analyst Matt Burnell writes in an April research note.

The Southeast regional bank has yet to repay TARP funds, and Adam Barkstrom, an analyst at Sterne Agee & Leach, is concerned that SunTrust will have to raise more capital in order to repay TARP so long as the bank keeps posting losses.

Barkstrom is also worried that credit costs will remain "elevated" as SunTrust "continues to work through a full plate of nonperforming loans and as the foreclosure process remains prolonged especially in Florida," according to a note published in April.

SunTrust "compares unfavorably to both large cap and Southeast peers in nearly every aspect of pre-provision return on assets , while also experiencing elevated provisioning expense," Barkstrom said in the note. "Given the future operating environment will likely be less pro-cyclical in nature due to increased regulatory costs, excess capital requirements and fuller reserve levels, we believe STI earnings will underperform relative to peers."

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2. Huntington Bancshares ( HBAN):

Huntington Bank made great strides in the first quarter -- despite still holding onto federal bailout funds -- by posting its first quarterly profit since the third quarter of 2008. Huntington's management has said they expect the regional bank to be profitable for 2010.

Still, six of the 20 analysts, or 30%, who cover Huntington have issued sell ratings on the bank, according to Bloomberg, counterbalancing the six analysts that rate the company a buy.

UBS's Penala maintained her sell rating following the bank's first-quarter report. "While results marked solid progress, we believe that 1Q EPS levers may not be sustainable - preventing HBAN from hitting its goal for full-year profitability in '10," she wrote in a recent research note.

Ken Usdin of Bank of America Merrill Lynch believes that Huntington will be able to turn a profit for 2010, but but he still sees challenges.

"Although Huntington has made significant improvements in its capital position, the bank faces further credit deterioration given its upper Midwest footprint and ongoing credit reviews," Usdin wrote in an April note. "Longer-term, it could be difficult for the bank to generate returns in excess of its peers given an economically challenged footprint."

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1.Doral Financial ( DRL):

Two of the six analysts, or 33%, who cover Doral Financial rate the bank as a sell, according to Bloomberg.

Cantor Fitzgerald bank analyst Michael Diana, one of the two analysts with a sell rating on the bank, had few encouraging words in his May 13 note following Doral's quarterly report.

"We regard Doral as having little earnings potential and little franchise value," Diana wrote. "In our view, Doral missed possibly its only growth opportunity when it failed to win an FDIC-assisted deal, and we regard the best remaining option as a sale (to realize the value of its large Puerto Rico tax benefits)."

However, it may be difficult to find a buyer and any acquisition will not likely come at a premium at least to core deposits.

As a result, Doral's funding costs are very high and the bank also has a very low net interest margin because core deposits equal just 16% of its funding. Doral also faces other near-term challenges including rising interest rates and further downward pressure on credit quality, he says.

Lending is also an issue for the Puerto Rican bank as more "formidable competitors" expand on the island.

"Doral is trying to position itself at the lower/more affordable end of the mortgage market. However, the whole market is shrinking," given 16% unemployment and a four-year recession on the tiny island, the analyst wrote, citing Moody's. "To maintain loan growth, Doral started buying syndicated credits out of its New York City office in the third quarter . In our view, this 'business' creates no franchise value, but carries plenty of risk."

--Written by Laurie Kulikowski in New York.

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