NEW YORK ( TheStreet) - Even in a year of recovering bank stocks, there have to be some losers.

But the pain has certainly eased-off from the previous two years and there are some quality names among the group, including Washington Federal ( WFSL), which has an ample war chest to fund acquisitions and People's United Financial ( PBCT) which is rapidly expanding.

While there's no common theme among the group, most of them are strongly capitalized and have double-digit upside based on average price targets among analysts polled by Thomson Reuters, with Capitol Federal Financial ( CFFN) - a mutual holding company going through a conversion - having the most upside of 42%. Capitol Federal also boasts the highest dividend yield among the group, of 8.29%.

Only four out of the ten holding companies took government assistance through the Troubled Assets Relief Program, or TARP, and two have since repaid the government in full. Of the remaining TARP participants, First Horizon National ( FHN) priced an offering of common shares on Monday and announced plans to repay the government.

Here are the 10 bank holding companies among the largest 100 by market capitalization with the largest year-to-date decline in share price:

Terms

For each of the 10 bank holding companies discussed on the following pages, we'll be looking at capital strength, earnings quality and asset quality. For an explanation of those terms you can click on the box below.

10. Prosperity Bancshares

Company Profile

Prosperity Bancshares ( PRSP) of Houston, Texas saw its stock decline 9% year-to-date, closing at $36.33 last Wednesday.

Income Statement

Prosperity reported third-quarter earnings of $32.2 million, or 69 cents a share, compared to $29.3 million, or 63 cents a share, during the third quarter of 2009. The ROA for the third quarter was 1.36%, and has exceeded 1% for every quarter since the end of 2007, except for the third quarter of 2008 when it dipped to 0.91%, according to SNL Financial.

The net interest margin for the third quarter was 3.97%, compared to 4.08% in the third quarter of 2008. Fluctuation of the margin has been an issue for the stock, as a drop in the margin to 4.00% during the second quarter from 4.20% during the first quarter alarmed investors, with the shares declining 11% over the three weeks following the second-quarter earnings release in July.

Balance Sheet

Total assets were $9.4 billion as of September 30, increasing 6% over the past year as the company acquired three Texas branches from U.S. Bancorp ( USB) and 19 Texas branches from First Bank of Creve Coeur, Mo.

Loan quality is very strong, with a nonperforming assets ratio of just 0.22% as of September 30. The net charge-off ratio for the third quarter was 0.51% and loan loss reserves covered 1.50% of total loans as of September 30.

Prosperity Bancshares didn't participate in TARP. The company's Tier 1 leverage ratio was 6.45% and its total risk-based capital ratio was 14.47% as of September 30. The tangible common equity ratio was 5.73%, according to SNL Financial.

Stock Ratios

The shares trade for 3.6 times tangible book value according to SNL, which is a very high multiple in the current environment for bank stocks. The forward price-to-earnings ratio is 13.2, based on the consensus earnings estimate for 2011 of $2.75 a share among analysts polled by Thomson Reuters.

Analyst Ratings

Out of 19 analysts covering Prosperity Bancshares, five rate the shares a buy, while the remaining analysts all recommend investors hold the shares.

9. Kearny Financial

Company Profile

Shares of Kearny Financial ( KRNY) of Fairfield, N.J. declined 11% year-to-date, closing at $8.81 last Wednesday, for a year-to-date decline of 11%.

On December 1, the company completed its acquisition of Central Jersey Bancorp in a deal that SNL Financial valued at about $72.3 million. Kearny Financial about $589 million in assets and 40 branches, which will operate under the name "Central Jersey Bank, A Division of Kearny Federal Savings Bank."

On December 1, Central Jersey Bancorp also completed its exit from TARP, redeeming warrants held by the U.S. Treasury for $320 thousand, after redeeming in November $11.3 million in preferred shares held by the government.

Income Statement

For the third quarter, Kearny reported net income of $1.3 million, or 2 cents a share, compared to $1.1 million, or 2 cents a share, a year earlier. The third-quarter net interest margin was 2.73%, down slightly from 2.74% a year earlier. The provision for loan losses increased to $1.3 million from $858,000 during the third quarter of 2009.

With net charge-offs of $435 thousand during the third quarter, the company was still building loan loss reserves, running counter to the pattern for many of the nation's largest bank holding companies, including Citigroup ( C), with loan loss reserves declining $2.5 billion during the third quarter, along with Bank of America ( BAC) and JPMorgan Chase ( JPM), which each reported a $1.68 billion decline in loan loss reserves.

Kearny's ROA for the third quarter was a lackluster 0.23%, and for the past five fiscal years ending on June 30, the ROA has been less than 0.50%.

Balance Sheet

Kearny Financial has a strong balance sheet, with total assets of $2.4 billion as of September 30 and the nonperforming assets ratio was a relatively low 1.07%. Net charge-offs were minimal and reserves covered 0.94% of total loans as of September 30.

Kearny Financial didn't participate in TARP. For main subsidiary Kearny Federal Savings Bank, the Tier 1 leverage ratio was a very strong 16.24% and the total risk-based capital ratio was 38.08% as of September 30. The holding company's tangible common equity ratio was a solid 17.51%, according to SNL Financial.

Stock Ratios

The shares trade for 1.5 times tangible book value according to SNL Financial.

Analyst Ratings

The only analyst covering Kearny Financial is Laurie Hunsicker of Stifel, Nicolaus, who has a buy rating on the shares, with an $11 price target. She estimates the company will earn 10 cents a share in 2011 and 14 cents a share in 2012.

8. Umpqua Holdings

Company Profile

Shares of Umpqua Holdings ( UMPQ) of Portland, Ore. declined 15% year-to-date, closing at $11.26 last Wednesday.

The company announced on December 2 that it would open five new branches in the Portland area over the next year, which will bring its total number of offices to 32.

Income Statement

The company reported third-quarter net income of $8.2 million, or 7 cents a share, compared to a net loss to common shareholders of $10.4 million, or 14 cents a share, a year earlier. A decline in the provision for non-covered loan losses to $24.3 million during the third quarter from $52.1 million a year earlier was partially offset by an increase in noninterest expenses, including $4.8 million in nonrecurring expenses "relating primarily to professional fees and severance costs."

The third-quarter net interest margin was 4.42%, rising from 4.05% a year earlier, and the ROA was 0.29%.

Balance Sheet

Total assets were $11.5 billion as of September 30, a 25% increase from a year earlier, reflecting the FDIC-assisted purchases of the failed Evergreen Bank in January, Rainier Pacific Bank in February and Nevada Security Bank in June. The NPA ratio was 1.83% as of September 30. The third-quarter net charge-off ratio was 1.82% and loan loss reserves covered 1.64% of total loans as of September 30.

The company raised $94.9 million in common equity in February, before fully exiting TARP, repaying the government $214.2 million. Umpqua's Tier 1 leverage ratio was 11.06% as of September 30 and its total risk-based capital ratio was 17.59% as of September 30. The tangible common equity ratio was 8.95% according to SNL Financial.

Stock Ratios

The shares trade for 1.3 times tangible book value according to SNL and 19.8 times the consensus earnings estimate of 57 cents a share for 2011. The forward P/E declines to 15.9 based on the consensus 2012 earnings estimate of 71 cents a share.

Analyst Ratings

Out of 11 analysts covering Umpqua Holdings, three rate the shares a buy, while the other eight analysts recommend investors hold the shares.

7. People's United Financial

Company Profile

Shares of People's United Financial of Bridgeport, Conn. dropped 16% year-to-date, to close at $13.47 last Wednesday.

Based on a quarterly payout of 15.5 cents, the shares have a dividend yield of 4.60%.

On December 1, People's United completed the acquisition of LSB Corp. for $94.8 million in cash. The acquired company held River Bank of North Andover, Mass., and had $780 million in total assets and seven branches.

On the same day, the company also completed its acquisition of Smithtown Bancorp of Hauppauge, N.Y., which had 31 branches and total assets of $2.3 billion. People's United paid $56.4 million in cash and stock for Smithtown Bancorp.

These acquisitions followed the company's purchase of Financial Federal Corporation in February for $699 million in cash and stock. The acquired company had $1.3 billion in total assets and specialized in collateralized lending and leasing to small businesses. People's United also purchased the failed Butler Bank of Lowell, Mass. from the FDIC in April. Butler Bank had four branches and $268 million in assets.

Income Statement

For the third quarter, People's United reported net income of $24.1 million, or 7 cents a share, compared to $26.8 million, or 8 cents a share a year earlier. The third-quarter provision for loan losses was $21.8 million, increasing slightly from $21.5 million in the third quarter of 2009. Third-quarter results included $5.3 million in "pre-tax merger-related expenses, core system conversion costs and one-time charges."

The net interest margin was 3.73% during the third quarter, rising from 3.19% a year earlier.

Balance Sheet

Total assets were $21.9 billion as of September 30. For main subsidiary People's United Bank, the nonperforming assets ratio was 1.85%, rising from 1.10% a year earlier. The banking subsidiary's the third-quarter net charge-off ratio was 057% and reserves covered 1.01% of total loans as of September 30.

Peoples United Financial didn't participate in TARP. The banking subsidiary's Tier 1 leverage ratio was 13.00% and the total risk-based capital ratio was 16.40% as of September 30. The holding company's tangible common equity ratio was a very strong 17.85% as of September 30 according to SNL Financial - the highest among this group of 10 holding companies.

Stock Ratios

The shares trade for 1.4 times tangible book value according to SNL, and 24.5 times the consensus earnings estimate for 2011 of 55 cents a share. The forward P/E drops to 17.7 based on the 2012 consensus earnings estimate of 76 cents a share.

Analyst Ratings

Out of 14 analysts covering People's United, eight rate the shares a buy, while the other six analysts recommend investors hold the shares.

6. Capitol Federal Financial

Company Profile

Shares of Capitol Federal Financial of Topeka, Kan. closed at $24.14 last Wednesday, declining 17% year-to-date.

Based on a quarterly payout of 50 cents, the shares have a dividend yield of 8.29%.

Capitol Federal is organized as a mid-tier holding company, with 29% of its common shares owned by the public, and the rest controlled by a mutual holding company. The mutual holding company generally waives its dividends, only collecting payments when they're needed to cover operating expenses.

The mutual holding company structure can be confusing, because at first glance it appears the company is paying out more than it earns. During the company's fiscal year ending on September 30, Capitol Federal Financial paid-out $2.29 in dividends per share, while earning 93 cents a share. But since the dividends were only paid on public shares, the company was really paying out far less than it earned, since net income came to $3.22 per public share.

The company is in the midst of a "second-step conversion," with the 71% of common shares controlled by the mutual holding company being sold to the public. Then the mutual holding company will disappear, leaving just the successor holding company, Capital Federal Financial, Inc.

The company completed the "resolicitation and community offering phase" of the offering on December 7 and reported a subscription of 38.5 million shares. The remaining shares are being offered to the public and in order for the conversion to be successful, the company needs to sell at least 118.15 million shares, gain shareholder approval on a vote scheduled for Wednesday and receive regulatory approval.

Income Statement

For the fiscal year ended September 30, Capitol Federal Financial reported net income of $67.8 million, or 93 cents a share, increasing from $66.3 million, or 91 cents a share, in fiscal 2009. The net interest margin for fiscal 2010 was a low 2.06%, but the ROA was 0.80%, making for decent earnings performance, especially in the current environment.

Balance Sheet

Total assets were $8.5 billion as of September 30. Main thrift subsidiary Capitol Federal Savings Bank was strongly capitalized with a Tier 1 leverage ratio of 9.77% and a total risk-based capital ratio of 23.80%. The nonperforming assets ratio was 0.45% as of September 30.

Capitol Federal didn't participate in TARP and the holding company's tangible common equity ratio was 11.33% as of September 30, according to SNL Financial.

Stock Ratios

The shares trade for 1.9 times tangible book value according to SNL and just 7.5 times the $3.22 per public share the company earned during fiscal 2010.

Analyst Ratings

Out of five analysts covering Capitol Federal Financial, two rate the shares a buy and the other three analysts recommend holding the shares.

5. Beneficial Mutual Bancorp

Company Profile

Shares of Beneficial Mutual Bancorp ( BNCL) of Philadelphia declined 18% year-to-date to close at $8.10 last Wednesday.

Income Statement

The company reported a third-quarter net loss of $21.7 million, or 28 cents a share, compared to net income of $5.8 million, or 7 cents a share, a year earlier. The third-quarter provision for loan losses was $51.1 million, compared to just $2 million in the third quarter of 2003.

Net charge-offs for the third quarter totaled $57 million, with the credit activity resulting mainly from "considerable deterioration in the value of a number of the Company's large commercial real estate loans, a pronounced slowdown in the commercial real estate market and a challenged overall economic environment in the Company's region that it does not see recovering anytime in the near future."

Balance Sheet

Total assets were $4.9 billion as of September 30 and the nonperforming assets ratio was 2.73%, improving from 3.22% a year earlier. The third-quarter net charge-off ratio was a very high 8.11%, reflecting the write-downs on commercial real estate loans as collateral values dropped. Loan loss reserves covered 1.62% of total loans as of September 30.

Beneficial Mutual didn't participate in TARP. The company's Tier 1 leverage ratio was 9.26% and its total risk-based capital ratio was 17.46% as of September 30. The tangible common equity ratio was 10.60% according to SNL Financial.

Stock Ratios

The shares trade for 1.3 times tangible book value according to SNL and 33.8 times the consensus earnings estimate of 24 cents a share for 2011. Based on the consensus earnings estimate of 32 cents a share for 2012, the forward P/E is still high at 25.3.

Analyst Ratings

Despite the grim outlook on credit quality from the holding company, five out of seven analysts covering Beneficial Mutual Bancorp rate the shares a buy, while the other two analysts recommend investors hold the shares.

4. First Horizon National

Company Profile

Shares of First Horizon National of Memphis, Tenn. declined 18% year-to-date to close at $10.29 last Wednesday.

After shares climbed to $10.92 on Monday, the company priced an offering of 23.8 million at a price of $10.50, looking to raise $250 million in common equity. First Horizon also planned to raise $400 million through a debt offering and was planning to use the proceeds of the offering to repay the government $866.5 million to exit TARP.

Income Statement

Third-quarter net income to common shareholders was $15.9 million, or 7 cents a share, compared to a net loss of $52.9 million, or 23 cents a share during the third quarter of 2009. The third-quarter provision for loan losses was $50 million, declining from $185 million a year earlier. With net charge-offs of $111.4 million, the company released $61.4 million in reserves during the third quarter.

The net interest margin was 3.23% during the third quarter, improving from 3.14% a year earlier. The third-quarter ROA was 0.52%, for the company's best earnings performance since the fourth quarter of 2006.

Balance Sheet

Total assets were $25.4 billion as of September 30 and the NPA ratio was 4.15%, improving from 5.15% a year earlier. The third-quarter net charge-off ratio was 2.55% and reserves covered 4.12% of total loans as of September 30.

The company's Tier 1 leverage ratio was 13.76% and its total risk-based capital ratio was 21.97% as of September 30. The tangible common equity ratio was 7.96% as of September 30, according to SNL Financial.

Stock Ratios

The shares trade for 1.2 times tangible book value according to SNL and 24.5 times the consensus estimate for 2011 of 42 cents a share. The forward P/E narrows to 12.1 based on the 2012 consensus earnings estimate of 85 cents a share.

Analyst Ratings

Out of 25 analysts covering First Horizon, nine rate the shares a buy, 15 recommend holding the shares and one analyst recommends investors sell the shares. Among the believers is Marty Mosby of Guggenheim Securities, who said in a report after First Horizon's offering announcement that First Horizon's actions "could eventually have a favorable impact on FHN FHN, as investors realize the favorable implications from the potential utilization of excess capital." Mosby's target price for the shares is $12.

3. MB Financial

Company Profile

Shares of MB Financial ( MBFI) of Chicago were down 19% year-to-date, closing at $16.02 last Wednesday.

The company has acquired six failed institutions from the Federal Deposit Insurance Corp. over the past two years, including New Century Bank and Broadway Bank, which were among the seven Illinois banks that failed on April 23. MB Financial also acquired $3 billion in deposits when Corus Bank failed in September 2009.

Income Statement

MB Financial reported a third-quarter net loss to common shareholders of $5.4 million, or 10 cents a share, compared to net income to common shareholders of $4.9 million, or 12 cents a share, in the third quarter of 2009, when the company booked acquisition-related gains of $10.2 million.

The third-quarter provision for loan losses was $65 million increasing from $45 million a year earlier. Net charge-offs during the third quarter totaled $66.7 million.

The net interest margin for the third quarter was 3.92%, increasing remarkably from 2.85% a year earlier.

Balance Sheet

MB Financial had total assets of $10.6 billion as of September 30 and based on its third-quarter regulatory filing with the Federal Reserve a nonperforming assets ratio - including loans past due 90 days, nonaccrual loans and repossessed real estate -- of 5.72%, increasing from 2.50% a year earlier. The third-quarter net charge-off ratio was 3.84% and loan loss reserves covered 2.83% of total loans at the end of the quarter.

The company owes $196 million in TARP money. The Tier 1 leverage ratio was 10.38% and the total risk-based capital ratio was 17.14% as of September 30. The tangible common equity ratio was 7.02% according to SNL Financial.

MB Financial owes $196 million in TARP money and Martin said his firm continues "to model TARP repayment in late 2012."

Stock Ratios

The shares trade for 1.2 times tangible book value according to SNL Financial and 21.9 times the 2011 earnings estimate of 73 cents a share. The forward P/E drops to an attractive 9.5 based on the 2012 consensus earnings estimate of $1.68 a share.

Analyst Ratings

Out of 14 analysts covering MB Financial, six rate the shares a buy, seven recommend holding the shares and one analyst recommends investors sell the shares.

2. Hancock Holding Company

Company Profile

Shares of Hancock Holding Company ( HBHC) of Gulfport Miss. declined 19% year-to-date, closing at $34.47 last Wednesday.

Based on a quarterly payout of 24 cents, the share have a dividend yield of 2.79%.

Income Statement

Third-quarter net income was $14.9 million, or 40 cents a share, compared to $15.2 million, or 47 cents a share, a year earlier. The third-quarter provision for loan losses was $16.3 million, increasing from $13.5 million in the third quarter of 2009. The company was continuing to build loan loss reserves, as third-quarter net charge-offs totaled $13.8 million.

The third-quarter net interest margin was 3.85%, compared to 3.86% a year earlier. The ROA was 0.70% during the third quarter.

Balance Sheet

Total assets were $8.3 billion, increasing 21% over the previous year, with Hancock purchasing the failed Peoples First Community Bank of Panama City, Fla. in December 2009.

The NPA ratio was 1.52% as of September 30. The third-quarter net charge-off ratio was 1.11% and reserves covered 1.61% of total loans as of September 30.

Hancock Holding Company didn't participate in TARP. The company's Tier 1 leverage ratio was 9.32% and its total risk-based capital ratio was 16.28% as of September 30. The tangible common equity ratio was 9.68% according to SNL Financial.

Stock Ratios

The shares trade for 1.6 times tangible book value according to SNL Financial and 19.3 times the 2011 consensus earnings estimate of $1.79 a share. The P/E drops to 14.7 based on the 2012 consensus earnings estimate of $2.35 a share.

Analyst Ratings

1. Washington Federal

Company Profile

Out of the 100 largest U.S. bank holding companies by market capitalization as defined by SNL Financial, Washington Federal of Seattle saw the largest year-to-date decline of 20% through last Wednesday, when the shares closed at $15.40.

On December 6, Sara Hasan of McAdams Wright Ragen increased her price target for the shares to $23, following a meeting with CFO Brent Beardall, saying that acquisitions were likely for the company, since it had plenty of excess capital.

Income Statement

For Washington Federal's fiscal 2010 ended September 30, net income was $118.7 million, or $1.05 a share, compared to $40.7 million, or 46 cents a share, for fiscal 2009. Earnings for fiscal 2010 were lifted by a $54.8 million after-tax gain on the bargain purchase of the failed Horizon Bank of Bellingham, Wash. from the FDIC in January.

The provision for loan loss reserves for fiscal 2010 was $179.9 million, down from $193 million in fiscal 2009. The net interest margin for the quarter ended September 30 was 3.09%, declining from 3.17% a year earlier. The ROA for fiscal 2010 was 0.89%, improving from 0.33% a year earlier.

Washington Federal is one of the most efficient bank or thrift holding companies in the country, with a third-quarter efficiency ratio of 32.19%, according to SNL Financial. A bank or thrift's efficiency ratio is essentially its noninterest expense divided by its interest and noninterest income. Washington Federal had the second-best efficiency ratio among the largest 100 U.S. bank and thrift holding companies, trailing Hudson City Bancorp ( HCBK) with an efficiency ratio of 22.55%, but ahead of New York Community Bancorp ( NYB), which had an efficiency ratio of 35.82%.

Balance Sheet

Total assets were $13.5 billion as of September 30, increasing 7% over the previous year. For main subsidiary Washington Federal Savings and Loan, the NPA ratio was 3.72%, increasing from 3.57% a year earlier. The net charge-off ratio for the quarter ended September 30 was a very low 0.25%, and reserves covered 1.08% of total loans as of September 30.

Washington Federal exited TARP in May, repaying the government $200 million. The company is very strongly capitalized, and the main subsidiary's Tier 1 leverage ratio was 11.67% and the total risk-based capital ratio was 23.39% as of September 30. The holding company's tangible common equity ratio was 11.98% as of September 30, according to SNL.

Stock Ratios

The shares trade for a low 1.1 times tangible book value according to SNL, and 14.4 times the consensus earnings estimate of $1.07 for 2011. The forward P/E drops to 10.8, based on the 2012 consensus earnings estimate of $1.43 a share.

Analyst Ratings

Out of 12 analysts covering Washington Federal, eight rate the shares a buy, while five recommend investors hold the shares. The mean price target among the analysts is $18.96 according to Thomson Reuters, and while that is far short of Hasan's $23 target, it would still represent 23% upside for the shares.

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

To contact the writer, click here: Philip van Doorn.

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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.