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

BB&T Corp. ( BBT) of Winston-Salem, N.C. ended the month at $24.83, down 5% during July and down 1% year-to-date. The shares were yielding 2.42% on a quarterly dividend payout of 15 cents.

Earnings: The company reported net income to common shareholders of $210 million, or 30 cents a share, for the second quarter, improving from a profit of $188 million, or 27 cents a share, the previous quarter. Net income during the second quarter of 2009 was $121 million, or 20 cents a share. Results for the second quarter of 2009 excluded $83 million in dividends on bailout money received through TARP, which was repaid in June 2009.

BB&T's net-interest margin for the second quarter was 4.12%, improving from 3.88% in the first quarter and 3.56% a year earlier, as the company continued to reduce wholesale borrowings and increase its non-interest bearing checking deposits. These deposits totaled $19.8 billion as of June 30, increasing 23% from a year earlier, and provided 14% of the company's funding. A year earlier, non-interest bearing checking deposits were 12% of total liabilities.

Capital: The company raised $2.6 billion in capital through two common stock offerings in 2009. BB&T was strongly capitalized as of June 30, with a Tier 1 capital ratio of 11.7% and a total risk-based capital ratio of 15.8%.

Asset Quality: BB&T had $155 billion in total assets as of June 30. Nonperforming assets comprised 2.90% of total assets, compared to 2.84% in March and 2.19% a year earlier. The net charge-off ratio for the second quarter was 2.48%, increasing from 1.84% in the first quarter and 1.81% a year earlier. Loan loss reserves covered 2.66% of total loans as of June 30. The second-quarter provision for credit losses was $650 million and the company was still building loan loss reserves, as the provision exceeded net charge-offs by $8 million.

After several years of massively building up loan loss reserves, several other large industry players released loan loss reserves during the second quarter, by provisioning less for reserves than they charged-off, thus boosting earnings by significant amounts. These included Citigroup ( C) which saw a $1.4 billion benefit to earnings and Bank of America ( BAC) which released $1.5 billion in reserves.

Prospects: FIG Partners analyst Christopher Marinac pointed out that even with rising credit costs, "BB&T still builds tangible book each quarter," and that the company is "a standout among large regional bank peers." FIG has an "outperform" or buy rating on BB&T, saying the shares are worth 12.5 times a "normalized EPS of $3.00 or better for 2012."

Shares of Fulton Financial ( FULT) of Lancaster, Pa., closed at $9.11 Friday, declining 6% during July but up 5% year-to-date.

Earnings: Fulton reported earnings of $26.6 million, or 14 cents a share, in the June quarter, improving from profits of $22.4 million, or 13 cents a share, in the first quarter and $8.1 million, or 5 cents a share, in the second quarter of 2009. These results excluded the roughly $5 million per quarter the company was paying on $376.5 million in preferred shares held by the Treasury for TARP money received in December 2008. Fulton repaid the TARP money in full on July 14.

The company's net-interest margin for the second quarter was 3.76%, improving from 3.43% a year earlier.

Capital: The company raised $226 million in capital through an offering of common shares in May, anticipating its TARP repayment in July. While Fulton didn't include regulatory capital ratios in its quarterly release, the tangible common equity ratio was 8.15% as of June 30, increasing from 5.81% a year earlier.

Asset Quality: Fulton's nonperforming assets ratio was 2.06% as of June 30, increasing from 1.90% the previous quarter and 1.73% a year earlier. The net charge-off ratio for the first quarter was 0.97%, up slightly from the previous quarter and matching the ratio a year earlier. Loan loss reserves covered 2.35% of total loans. The company was continuing to build reserves, as its quarterly provision of $40 million well-exceeded $28.9 million in loan losses.

Prospects: Guggenheim Securities analyst David Darst has a buy rating on the shares with a 12-month target of $12, saying his firm feels "longer-term fundamentals and earnings power remains above peers."

Wintrust Financial ( WTFC) of Lake Forest, Ill., closed at $31.12 Friday, down 7% for July but up 1% for 2010.

Wintrust's holding company acquired two failed Chicago-area banks in April, adding five branches and $637 million in assets with 80% loss-sharing guarantees by the FDIC on the riskier assets.

Earnings: The company reported second-quarter net income of $8.1 million, or 25 cents a share, compared to profits of $11.1 million, or 41 cents a share, in the first quarter and $1.5 million, or 6 cents a share, in the second quarter of 2009. These results excluded about $5 million per quarter in dividends on preferred shares.

Earnings declined from the first quarter because Wintrust increased its provision for loan loss reserves to $41.3 million for the second quarter from $29 million in the first quarter and $23.7 million a year earlier.

The company's net-interest margin expanded to 3.43% from 2.91% a year earlier despite weak loan demand, and CEO Edward Wehmer said the margin should continue to improve as Wintrust identifies "opportunities to re-deploy low yielding short-term liquidity assets into higher yielding loans and re-price maturing retail certificates of deposit."

Capital: Wintrust owes $250 million in TARP money. The company raised $222 million in capital through a common offering completed in March. The Tier 1 capital ratio was estimated to be 13.1% as of June 30, and the total risk-based capital ratio was an estimated 14.4%.

Asset Quality: Wintrust had total assets of $13.7 billion as of June 30. Nonperforming assets comprised 1.62% of total assets, declining from 1.79% in March and 2.46% in June 2009. The ratio of net charge-offs to average loans for the second quarter was 1.63%, up from 1.19% the previous quarter and 0.63% a year earlier. The main factor in the quarter-over-quarter increase in loan losses was a $15.7 million fraud loss in the company's commercial loan portfolio. Loan loss reserves covered 1.17% of total loans as of June 30, showing the company is confident its overall asset quality is continuing to improve.

Prospects: Following the second-quarter earnings announcement, Howe Barnes Hoefer & Arnett analyst Daniel Cardenas maintained his buy rating on the shares, but lowered his 12-month target for Wintrust to $42, terming the pullback in the shares an "opportunity to establish or build on a position in what we think will be an active acquirer with good organic growth potential, manageable credit quality issues and positive earnings momentum.

The worst-performing large bank stock for July was BancorpSouth ( BXS) of Tupelo, Miss., which closed at $14.66 Friday, down 18% for the month and 36% year-to-date.

Earnings: Shares nosedived on July 23 when the company reported a second-quarter loss of 15 cents a share, much wider than the average estimate of analysts polled by Thomson Reuters for a profit of 23 cents a share.

>>>Bancorpsouth Sinks After Surprise Loss

Capital: BancorpSouth is not a TARP participant. The company remained well capitalized as of June 30, with a Tier 1 capital ratio of 10.53% and a total risk-based capital ratio of 11.79%.

Asset Quality: Nonperforming assets -- in which the company included nonaccrual loans, accruing loans past-due 90 days, restructured loans and repossessed real estate -- comprised 2.76% of total assets as of June 30, increasing from 2.23% the previous quarter and 1.12% in June 2009. The company's net charge-off ratio for the second quarter was 2.08% and loan loss reserves covered 2.08% of total loans.

While the company's nonperforming assets and charge-off ratios measure up well compared to the national aggregates, the market reacted negatively because BancorpSouth was hit late in the credit cycle, creating major drag on earnings over the next few quarters.

Prospects: Sterne Agee analyst Adam Barkstrom maintained a neutral rating on the shares, saying "the shares are fairly valued as we see little near-term catalysts to move the shares higher given the uncertain economic environment and the increasing pace of asset quality deterioration."

-- Written by Philip van Doorn in Jupiter, Fla.
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.

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