NEW YORK ( TheStreet) -- Using market and regulatory data provided by SNL Financial and Thomson Reuters, TheStreet has developed a list of the ten actively traded bank stocks with the lowest prices relative to consensus earnings estimates for 2011.

While most bank stocks are trading below tangible book value, that's not a good enough reason for investors to jump in. The name of the game is "normalized earnings," and while many holding companies are not expected to come close to pre-crisis earnings performance for two more years because of an expected decline in deposit fee revenue, historically low interest rates, weak loan demand, and lingering credit quality concerns for some, the major players should be able to continue releasing loan loss reserves which will boost earnings.

SNL Financial provided forward price-to-earnings ratios for 137 publicly traded U.S. bank and thrift holding companies with three-month average trading volume of at least 50,000. The P/E ratios are based on 2011 consensus estimates of earnings-per-common share, among analysts polled by Thomson Reuters and share prices on the date SNL received the consensus earnings estimates.

The following ten bank holding company stocks had the lowest price-to-earnings ratios based on 2011 EPS estimates among the group. Here they are, in order of descending forward P/E:

10. Capital One Financial

Company Profile

Shares of Capital One Financial ( COF) of McLean, Va. closed at $40.69 Friday, for a year-to-date return 7%. The forward price-to-earnings ratio was 8.9, based on 2011 earnings-per-share estimate of $4.39 among analysts polled by Thomson Reuters.

Income Statement

Capital One reported second-quarter net income of $608 million, or $1.33 a share, compared to first-quarter earnings of $636 million, or $1.40 a share, and a net loss to common shareholders of $276 million, or 66 cents a share, a year earlier. Earnings for the second quarter of 2009 included charges related to repayment of $3.6 billion in bailout funds received via the Troubled Assets Relief Program, or TARP. Excluding those charges, Capital One would have earned $224 million or 53 cents a share for the second quarter of 2009.

Balance Sheet

Capital One had $197 billion in total assets as of June 30. Nonperforming assets - including loans past due 90 days or in nonaccrual status (less government-guaranteed balances) and repossessed real estate - comprised 2.22% of total assets as of June 30. This compares to a national aggregate second-quarter "noncurrent assets" ratio of 3.31% reported by the Federal Deposit Insurance Corporation.

For more on Capital One's improving credit quality, please see TheStreet's Card Outlook Positive for Big Issuers.

Stock Ratios

Capital One's shares were trading for 1.7 times tangible book value according to SNL. The price-to-forward earnings ratio of 8.9 compares to pre-credit-crisis P/E ratios exceeding 15 at the end of 2005, 2006 and 2007.

Analyst Ratings

Out of 23 analysts covering Capital One, 8 rate the shares a buy, while 14 recommend holding the shares and one recommends selling, according to Thomson Reuters.

9. Hudson Valley Holding Corp.

Company Profile

Hudson Valley Holding Corp. ( HUVL) of Yonkers, N.Y. saw its shares decline 25% year-to-date, to close at $18.04 Friday. The forward price-to-earnings ratio was 8.7, based on the consensus 2011 earnings-per-share estimate among analysts polled by Thomson Reuters.

Income Statement

Hudson Valley reported a net loss of $11 million, or 68 cents a share, for the second quarter, compared to net income of $4.9 million, or 30 cents a share, for the first quarter and $310 thousand, or 3 cents a share, a year earlier.

The poor results in the second quarter reflected a $28.5 provision for loan loss reserves, as the holding company decided to take a more aggressive approach and "more expeditiously our problem loans," CEO James Landy said.

Balance Sheet

Hudson Valley Holding had $2.9 billion in total assets as of June 30. The nonperforming assets ratio was 2.62%, down from 3.04% the previous quarter but up from 2.32% a year earlier. The second-quarter net charge-off ratio was a high 4.64%, reflecting management's new approach in cleaning out problem loans.

Stock Ratios

Hudson Valley's shares were trading at just 1.1 times tangible book value as of Friday's close. The price-to-forward-earnings ratio of 8.6 compares to year-end P/E exceeding 13 at the end of 2005, 2006 and 2007.

Analyst Ratings

Among three analysts covering the shares, two recommend buying Hudson Valley, while one had a hold rating, according to Thomson Reuters.

8. Bank of America

Company Profile

Shares of Bank of America ( BAC) closed at $13.50 Friday, down 10% for 2010. The forward price-to-earnings ratio was 8.6, based on the consensus 2011 earnings-per-share estimate among analysts polled by Thomson Reuters.

Income Statement

Please see TheStreet's earnings coverage for a detailed discussion of the company's second-quarter results.

Balance Sheet

Bank of America was the largest holding company headquartered in the U.S. with $2.4 trillion in total assets as of June 30. The company's nonperforming assets ratio was 2.45% as of June 30, improving from 2.57% the previous quarter but exceeding 2.32% a year earlier. Bank of America has consistently led the largest six credit card lenders in credit card loss rates over the past year, although its credit quality continues to improve in line with the industry.

Stock Ratios

Bank of America's shares were trading for 1.1 times tangible book value Friday, and the company's forward P/E ratio of 8.6 compared with P/E of 13.1 at the end of 2005 and 11.5 at the end of 2006.

Analyst Ratings

Positive sentiment is very strong among the 24 analysts covering Bank of America, with 20 buy ratings and four analysts recommending investors hold the shares.

7. Wells Fargo

Company Profile

Shares of Wells Fargo & Co. ( WFC) closed at $25.84 Friday, declining 4% year-to-date. The forward price-to-earnings ratio was 8.6, based on the consensus 2011 earnings-per-share estimate among analysts polled by Thomson Reuters.

Income Statement

Please see TheStreet's earnings coverage for details on Wells Fargo's second quarter results.

Balance Sheet

Wells Fargo was the fourth-largest U.S. bank holding company, with $1.2 trillion in assets as of June 30. Nonperforming assets comprised 4.26% of total assets, compared to 4.32% in March and 2.93% in June 2009.

Stock Ratios

Wells Fargo's shares were trading for 1.7 times tangible book value. The forward P/E ratio of 8.6 compares to year-end P/E exceeding 13 at the end of 2005, 2006 and 2007.

Analyst Ratings

There is strong enthusiasm for the shares, as 18 of 25 analysts covering Wells Fargo recommend buying, while 4 have hold ratings on the shares and 3 recommend selling.

6. Oriential Financial Group

Company Profile

Shares of Oriental Financial Group ( OFG) of San Juan, Puerto Rico, closed at $13.71 Friday, returning 28% year-to-date. The forward price-to-earnings ratio was 8.5, based on the consensus 2011 earnings-per-share estimate among analysts polled by Thomson Reuters.

Income Statement

After netting-out dividends on preferred shares, Oriental reported second-quarter net income available to common shareholders of $12.5 million or 38 cents a share, compared to $10.7 million or 41 cents a share the previous quarter and $49.7 million or $2.04 a share a year earlier.

Results for the second quarter reflected a $16.5 million gain on the purchase of the failed Eurobank from the FDIC and $26.6 million in net losses on derivatives, while results for the second quarter of 2009 included $10.5 million in gains on the sale of securities, $13 million in trading gains and $19.4 million in gains from derivative activities.

Balance Sheet

Oriental Financial Group had $8.1 billion in total assets as of June 30. The company's nonperforming assets ratio was 2.06% as of June 30 and its loan charge-offs have remained low through the credit crisis. The company is emerging as a clear winner in the Puerto Rico market, with the best asset quality among banks headquartered in the territory, and major expansion from the Eurobank acquisition. The company was also strongly capitalized as of June 30, with a Tier 1 leverage ratio of 9.26% and a total risk-based capital ratio of 25.11%, far exceeding the 5% and 10% required for most bank to be considered well capitalized by regulators.

Stock Ratios

Oriental's share were trading for 0.9 times tangible book value as of Friday's market close, according to SNL Financial. In comparison, year-end P/E ratios were 5.7 at the end of 2007 and 10.7 at the end of 2005. The company reported a net loss to common shareholders of $9.9 million in 2006.

Analyst Ratings

Out of five analysts covering Oriental Financial Group, four have buy ratings, while one recommends holding the shares. Keefe, Bruyette & Woods analyst Bain Slack has an "outperform" or buy rating on the shares, saying that Oriental now has "highest capital levels on the island." His 12-month price target for the shares is $22.00.

5. Citigroup

Company Profile

Shares of Citigroup ( C) closed at $3.91 Friday, rising 18% year-to-date. The forward price-to-earnings ratio was 8.4, based on the consensus 2011 earnings-per-share estimate among analysts polled by Thomson Reuters.

Income Statement

Please see TheStreet's earnings coverage for details on Citigroup's second-quarter results.

Balance Sheet

Citigroup was the third-largest U.S. holding company with $1.9 trillion in total assets as of June 30. Nonperforming assets comprised 1.88% of total assets as of June 30. The net charge-off ratio for the second quarter was 4.32%, and this ratio has exceeded 4% over the past year. Among the largest credit card lenders, Citigroup's annualized credit card loan loss rate of 9.10% for July was only exceeded by Bank of America, but the loss rate had improved from 13.81% a year earlier.

Stock Ratios

Citi's shares have been trading around 0.9 times tangible book value for quite some time, with continued selling by the U.S. Treasury of its stake in the company pressuring the shares.

Analyst Ratings

Among 19 analysts covering Citigroup, 9 recommend buying, while 8 have hold ratings and 2 recommend investors part with the shares.

4. JPMorgan Chase

Company Profile

Shares of JPMorgan Chase ( JPM) declined 6% year-to-date to close at $39.17 Friday. The forward price-to-earnings ratio was 8.2, based on the consensus 2011 earnings-per-share estimate among analysts polled by Thomson Reuters.

Income Statement

Please see TheStreet's earnings coverage for details on JPMorgan Chase's second-quarter results.

Balance Sheet

JPMorgan Chase was the second-largest U.S. bank holding company, with $2 trillion in total assets as of June 30. Capital ratios have been building with improving profits over the past year. Nonperforming assets comprised 2.06% of total assets as of June 30.

Stock Ratios

JPMorgan's shares were trading for 1.4 times tangible book value as of Friday's close, according to SNL. The forward P/E of 8.2 compares to 13.1 at the end of 2005 and 9.6 at the end of 2006.

Analyst Ratings

Analysts are pretty close to a consensus on the company, as 21 of 23 analysts covering JPMorgan Chase rate the company a buy. Two analysts have hold ratings on the shares.

3. Wilshire Bancorp

Company Profile

Shares of Wilshire Bancorp ( WIBC) of Los Angeles closed at $6.22 Friday, down 24% year-to-date. The forward price-to-earnings ratio was 7.8, based on the consensus 2011 earnings-per-share estimate among analysts polled by Thomson Reuters.

Income Statement

The company reported a second-quarter net loss to common shareholders of $4.6 million or 15 cents a share, compared to net income to common shareholders of $2.4 million or 8 cents a share the previous quarter and $12.8 million or 44 cents a share a year earlier. During the second quarter, Wilshire Bancorp's provision for loan losses increased to $31.3 million from $16.9 million in the first quarter and $11.8 million during the second quarter of 2009.

Balance Sheet

Wilshire Bancorp had $3.4 billion in total assets as of June 30. The company owes $62.2 million in TARP money. Nonperforming assets comprised 2.20% of total assets and the second-quarter net charge-off ratio was 2.58%. The net charge-off ratio was 2.58% for the second quarter, and the company significantly increased its loan loss reserves to cover 3.55% of total loans as of June 30.

Stock Ratios

Shares were trading for 0.9 times tangible book value. The forward P/E of 7.8 compares to P/E exceeding 15 at the end of 2005 and 2006, and a P/E of 10.9 at the end of 2007.

Analyst Ratings

Six out of seven analysts covering Wilshire Bancorp rate the shares a hold, while one analyst recommends buying the shares.

2. Republic Bancorp

Company Profile

Shares of Republic Bancorp ( RBCAA) of Louisville, Ky. closed at $19.52 Friday, declining 4% year-to-date. The forward price-to-earnings ratio was 6.2, based on the consensus 2011 earnings-per-share estimate among analysts polled by Thomson Reuters.

The company boasted the highest dividend yield among this group of ten holding companies. Shares were yielding 2.93% as of Friday's close, based on a quarterly payout of 14.3 cents a share.

Income Statement

Republic Bancorp earned $8.4 million or 40 cents a share during the second quarter, down from $44.6 million or $2.14 in the first quarter when the company reported a revenue spike from its Tax Refunds Solutions business, which makes tax refund anticipation loans and facilitates those loans through third-party tax preparers and also charges fees to process refunds electronically. For the second quarter of 2009, the company reported net income of $6.9 million or 33 cents a share.

Balance Sheet

Republic Bancorp had $3.1 billion in total assets as of June 30. The nonperforming assets ratio was 1.41% -- quite low in the current environment - and loan losses have been minimal through the credit crisis.

Stock Ratios

Shares were trading for 1.1 times tangible book value. The forward P/E of 6.2 appeared quite low, although it remains to be seen if Republic will continue the stellar seasonal performance of its tax services businesses. The P/E was 17.4 at the end of 2005, 21.3 at the end of 2006 and 13.3 at the end of 2007.

Analyst Ratings

Two analysts cover the shares and both recommend investors hold. Lingering regulatory concerns about the bank's tax refund loan business are probably dragging on the shares, as the company has not followed up on an announcement in December that it would meet with the FDIC to discuss the future of its tax loan program.

1. BOFI Holding, Inc.

Company Profile

The cheapest actively traded bank stock among the group with a forward price-to-earnings ratio of 6.18, based on the consensus 2011 earnings-per-share estimate among analysts polled by Thomson Reuters, was BOFI Holding ( BOFI) of San Diego, Calif. Shares rose 22% year-to-date through Friday, to close at $12.15.

Income Statement

BOFI reported second-quarter net income of $4.7 million or 44 cents a share, following net income in the first quarter of $7.2 million or 77 cents a share and $3.6 million or 46 cents a share in the second quarter of 2009.

First-quarter earnings were boosted by $5.9 million in gains on the sale of mortgage-backed securities.

Balance Sheet

BOFI Holding had $1.4 billion in total assets as of June 30. For main subsidiary Bank of Internet USA, asset quality was good, with a nonperforming assets ratio of 1.10% and a net charge-off ratio staying below 1% over the past year.

The thrift subsidiary was well capitalized with a tier 1 leverage ratio of 8.79% and a total risk-based capital ratio of 15.25% as of June 30.

The holding company raised $15 million through a common offering completed in April.

Stock Ratios

Shares were trading just below tangible book value. The forward P/E of 6.18 looks very low when compared to the P/E exceeding 18 at the end of 2005, 2006 and 2007.

Analyst Ratings

The one analyst covering the shares rates them a buy.

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

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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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