NEW YORK ( TheStreet) -- Bank stocks with high-dividend yields have been a favorite subject for TheStreet's readers through 2010. With price appreciation for some -- and a recent conversion for one high payer -- the landscape is quickly changing.

Using data supplied by SNL Financial for publicly traded U.S. banks and thrifts -- excluding those traded on the Pink Sheets -- TheStreet has narrowed down the list to the ten names with the highest dividend yields. Critieria also include stocks that have earnings estimates and price targets available for 2011 and are covered by at least three analysts.

While a yield of at least 4.09% might not be very exciting to some stock investors, it compares favorably to the 10-year U.S. Treasury benchmark bond yield of 3.41% as of Monday's close, as well as the 3.80% yield on Walmart's ( WMT) 10-year bond that was issued in October. Of course, the common stock investor may also enjoy long-term growth.

The holding company that would have topped our list is Capitol Federal Financial ( CFFND) of Topeka, Kan., with a dividend yield of 7.54% based on its last quarterly dividend of 22 cents per public share and a closing price of $11.72 Monday. However, the company completed its second-step conversion to full stock ownership on December 21 and its dividend policy will be changing.

According to the offering prospectus, Capitol Federal Financial will pay a one-time special dividend of 60 cents a share, subject to regulatory approval. With a very large capital war chest following the conversion, the company plans to pay-out 100% of its earnings for the next two fiscal years, anticipating a quarterly dividend of about 7.5 cents a share. This would represent a regular dividend yield of 2.56% based on Monday's closing price.

With Capitol Federal strongly capitalized even before it raised $1.2 billion in common equity through the conversion, this is now a growth story for investors.

Here are the ten bank and thrift stocks with high dividend yields meeting our criteria:

Terms

For each of the 5 banks 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. Community Trust Bancorp

Company Profile

Shares of Community Trust Bancorp ( CTBI) of Pikeville, Ky. closed at $29.81 Monday, up 27% year-to-date. Based on a quarterly payout of 31 cents, the shares have a dividend yield of 4.09%.

On November 17 the company entered the Tennessee market, completing its acquisition of LaFollette First National Corp. and its subsidiary First National Bank of LaFollette, Tenn., for $16.1 million in stock, bringing on $182 million in assets and four branches.

Income Statement

Third-quarter net income was $8.5 million, or 55 cents a share, improving from $5.6 million, or 37 cents a share during the third quarter of 2009. The main factor in the earnings improvement was a decline in the provision for loan losses to $3.7 million in the third quarter from $5.8 million a year earlier.

The company's tax-adjusted net interest margin for the third quarter was 4.04%, according to SNL Financial, rising from 3.67% a year earlier.

Community Trust Bancorp's third-quarter return on average assets was 1.04%, which was third-highest among this group of ten holding companies. The dividend payout ratio - cash dividends paid per share as a percentage of diluted EPS after extraordinary items - was 55%, which was the lowest among the group of ten holding companies. Despite comfortably covering the dividend with earnings the payout ratio, ranging from 41% to 46% from 2005 through 2007, was still higher than it was before the credit crisis began affecting most banks' earnings.

Balance Sheet

Total assets were $3.2 billion as of September 30 and the nonperforming assets ratio was 2.97% compared to 2.63% a year earlier. The NPA ratio peaked at 3.13% in June. The third-quarter ratio of net charge-offs to average loans was 0.92% and loan loss reserves were well "ahead of the pace," covering 1.40% of total loans as of September 30.

Like all 10 companies listed here, Community Trust was well-capitalized as of September 30, with a Tier 1 leverage ratio of 10.22% and a total risk-based capital ratio of 14.62% as of September 30. The tangible common equity ratio was 8.58% according to SNL Financial.

Stock Ratios

The shares trade for 1.7 times tangible book value according to SNL and 14 times the 2011 consensus earnings estimate of $2.10 a share among analysts polled by Thomson Reuters.

Analyst Ratings

Two of the four analysts covering Community Trust Bancorp rate the shares a buy, while the other two recommend investors hold the shares.

9. First Niagara Financial Group

Company Profile

Shares of First Niagara Financial ( FNFG) of Buffalo, N.Y. closed at $14.23 Monday, up 7% year-to-date. Based on a quarterly payout of 15 cents, the shares have a dividend yield of 4.22%. The company increased the dividend a penny when it announced its third-quarter results. SNL Financial reported that during First Niagara's presentation at the Sandler O'Neill East Coast Financial Services Conference in November, CFO Michael Harrington said that "the days of capital accumulation are over for us," and that the company would eventually look to deploy $500 million in excess capital. That could mean that further dividend increases are in store.

On December 20, shareholders of First Niagara and NewAlliance Bancshares ( NAL) of New Haven, Conn. approved the companies' merger deal, which is expected to close in April 2011, subject to regulatory approval. New Alliance has $8.8 billion in total assets and 88 branches in Connecticut and western Massachusetts. The combined company will have total assets of about $29 billion and 340 branches in Upstate New York, Pennsylvania, Connecticut and Massachusetts.

On August 18, First Niagara agreed to pay $14.25 a share in cash and stock for NewAlliance, in a deal valued at $1.5 billion. The deal price represented a 25% premium to NewAlliance's closing price of $11.41 on August 17.

The deal marked the third recent major expansion First Niagara into neighboring markets, following the acquisition of Harleysville National of Harleysville, Penn. which was acquired on April 9 and the purchase of 57 National City Bank branches in western Pennsylvania in September 2009.

Income Statement

Third-quarter net income was $45.6 million, or 22 cents a share, increasing from $10.9 million, or 7 cents a share, a year earlier, as First Niagara saw its expansion pay-off. Net interest income increased 63% year-over-year to $161.3 million.

The company's third-quarter ROA was 0.89% and its dividend payout ratio was 64%.

Balance Sheet

Total assets were $20.9 billion as of September 30 and the NPA ratio was a 0.75%, which is a low level of problem assets in the current environment. The company's Tier 1 leverage ratio was 8.37% and its total risk-based capital ratio was 15.10% as of September 30. According to SNL Financial, the tangible common equity ratio was 8.63%.

Stock Ratios

The shares trade for 1.7 times tangible book value according to SNL and 14 times the 2011 consensus earnings estimate of $1.02 a share.

Analyst Ratings

Among the 10 analysts covering First Niagara, six rate the shares a buy, while the other four recommend investors hold the shares.

8. People's United Financial

Company Profile

Shares of People's United Financial ( PBCT) of Bridgeport, Conn. closed at $14.01 Monday, down 12% year-to-date. Based on a quarterly payout of 16 cents, the shares have a dividend yield of 4.43%.

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

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

These acquisitions followed the company's purchase of Financial Federal Corporation in February for $699 million in cash and stock. Financial Federal 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 Federal Deposit Insurance Corp. in April. Butler Bank had four branches and $268 million in assets.

Income Statement

Third-quarter net income was $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 expenses related to the mergers and systems conversions, as well as other one-time charges.

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

With overall earnings performance suffering from the merger and conversion expenses and the provision for loan losses remaining at an elevated level, People's United's third-quarter ROA was a mediocre 0.44% and its dividend payout ratio was 221%, which was by far the highest payout ratio among the companies listed here. Then again, with a very strong capital war chest, a high payout ratio is not a concern for the company.

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.

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.

Stock Ratios

The shares trade for 1.4 times tangible book value according to SNL Financial and 25 times the 2011 consensus earnings estimate of 55 cents a share. The forward P/E declines to 19, based on the 2012 consensus earnings estimate of 75 cents a share.

Analyst Ratings

Out of 15 analysts covering People's United, eight rate the shares a buy, while the other seven analysts recommend investors hold the shares.

7. Hudson City Bancorp

Company Profile

Shares of Hudson City Bancorp ( HCBK) of Paramus, N.J. closed at $12.87 Monday, down 2% year-to-date. Based on a quarterly payout of 15 cents, the shares have a dividend yield of 4.66%.

On December 17, Hudson City withdrew its application with the Office of the Comptroller of the Currency to convert its main thrift subsidiary - Hudson City Savings Bank - into a nationally chartered commercial bank. The thrift will still come under the supervision of the OCC, as its current regulator, the Office of Thrift Supervision, is scheduled to be merged with the OCC in July.

Income Statement

Third-quarter net income was $124.6 million, or 25 cents a share, down from $135.1 million, or 27 cents a share, during the third quarter of 2009, mainly because the net interest margin declined to 1.97% from 2.31%, as earnings suffered in the low-rate environment. CEO Ronald Hermance said that further "quantitative easing by the Federal Reserve Board will continue to place pressure on our net interest margin for the remainder of 2010," and also said that pursuing further asset growth in such a low-rate environment wouldn't be prudent.

The third-quarter ROA was 0.82%, declining from 0.93% a year earlier. Despite the decline in the margin, the ROA held up decently because of the company's high operating efficiency. SNL Financial defines a bank's efficiency ratio as its noninterest expense (before expenses on foreclosed property, amortization of intangibles and goodwill impairments) divided by its revenue (excluding securities gains and nonrecurring items). Lower is better, and Hudson City's third-quarter efficiency ratio of 22.55 was the lowest among nearly 1,000 publicly traded banks and thrifts.

The third-quarter dividend payout ratio was 60%.

Balance Sheet

Total assets were $60.6 billion as of September 30. For Hudson City Savings Bank, the NPA ratio was 1.35%. The thrift's net charge-off ratio during the third quarter was 0.33% and reserves covered 0.66% of total loans as of September 30. The holding company's tangible common equity ratio was 9.04% as of September 30.

Stock Ratios

The shares trade for a low 1.2 times tangible book value according to SNL and 14 times the 2011 consensus earnings estimate of 92 cents a share.

Analyst Ratings

Hudson City remains a low-risk dividend play for patient income-seeking investors who can wait until the company benefits from an eventual rise in interest rates. Out of 16 analysts covering the shares, only one has a buy rating, while 13 have hold ratings and two recommend selling the shares.

6. F.N.B. Corporation

Company Profile

Shares of F.N.B. Corporation ( FNB) of Hermitage, Pa. closed at $10.09 Monday, up 58% year-to-date. Based on a quarterly payout of 12 cents, the shares have a dividend yield of 4.76%.

On December 21, the company received regulatory approval for its acquisition of Comm Bancorp ( CCBP) of Clarks Summit, Pa., which is expected to be completed on January 1 for about $67.7 million in cash and stock. As of September 30, Comm Bancorp had $653 million in total assets and 15 branches in northeastern Pennsylvania.

Income Statement

Third-quarter net income was $17.2 million, or 15 cents a share, improving from net income to common shareholders a year earlier of $4.8 million, or 4 cents a share, when F.N.B paid $5.5 million in dividends and amortization while fully repaying the government $100 million in bailout funds received through the Troubled Assets Relief Program, or TARP. Third-quarter 2009 results also included $3.3 million in impairment charges on investments in pooled trust-preferred securities.

F.N.B.'s third-quarter net interest margin was 3.78%, improving from 3.66% a year earlier, which the company said reflected "lower deposit and borrowing costs driven by an improved funding mix in a low interest rate environment partially offset by lower yields on earning assets."

The third-quarter ROA was 0.77% and the dividend payout ratio was 80%.

Balance Sheet

Total assets were $9 billion as of September 30, and the NPA ratio was 1.96%. The third-quarter net charge-off ratio was a relatively low 0.65% reserves covered 1.94% of total loans as of September 30.

The company's Tier 1 leverage ratio was 12.88% and its total risk-based capital ratio was 12.88% as of September 30. The tangible common equity ratio was 5.96% according to SNL Financial - the lowest among the 10 companies listed here.

Stock Ratios

The shares trade for 2.3 times tangible book value according to SNL and 14 times the 2011 consensus earnings estimate of 72 cents a share.

Analyst Ratings

Two out of eight analysts covering the company rate F.N.B. a buy, while the remaining analysts all recommend investors hold the shares.

5. Valley National Bancorp

Company Profile

Shares of Valley National Bancorp ( VLY) of Wayne, N.J. closed at $14.42 Monday, up 13% year-to-date. Based on a quarterly payout of 18 cents, the shares have a dividend yield of 4.99%.

Income Statement

Valley reported third-quarter net income to common stockholders of $32.7 million, or 20 cents a share, improving from $25.6 million, or 17 cents a share, a year earlier. The company's net interest margin increased to 3.70% from 3.65% a year earlier and its provision for loan losses declined to $9.2 million from $12.6 million in the third quarter of 2009.

The third-quarter ROA was 0.93% and the dividend payout ratio was 90%.

Balance Sheet

Total assets were $14.1 million as of September 30 and the nonperforming assets ratio was 0.87%. The third-quarter net charge-off ratio was a very low 0.27% and reserves covered 1.19% of total loans as of September 30.

The Tier 1 leverage ratio was 8.27% and the total risk-based capital ratio was 12.58% as of September 30. The tangible common equity ratio was 6.91% according to SNL Financial.

Stock Ratios

The shares trade for 2.4 times tangible book value according to SNL and 17 times the 2011 consensus earnings estimate of 26 cents a share.

Analyst Ratings

Out of nine analysts covering the shares two have buy ratings, five rate the shares a hold and two analysts recommend investors sell the shares.

4. Park National Corporation

Company Profile

Shares of Park National Corporation ( PRK) of Newark, Ohio closed at $74.39 Monday, up 34% year-to-date. Based on a quarterly payout of 94 cents, the shares have a dividend yield of 5.05%.

Income Statement

Net income to common shareholders for the third quarter was $18.1 million, or $1.19 a share, declining from $19.7 million, or $1.30 a share, a year earlier, mainly because the results in the third quarter of 2009 included $3.5 million in gains on the sale of securities.

The third-quarter ROA was 1.11%, which was the highest among these 10 holding companies, despite Park National's payment of $1.5 million in dividends and accretion on $100 million in preferred shares held by the government for TARP assistance received in December 2008. Park National is the only company listed here that still owes TARP money.

The company's third-quarter dividend payout ratio was 79%.

Balance Sheet

Total assets were $7.1 billion as of September 30 and the nonperforming assets ratio was 4.24%, increasing from 3.71% a year earlier. The net charge-off ratio for the third quarter was 1.54% and loan loss reserves covered 2.52% of total loans as of September 30.

The Tier 1 leverage ratio was 9.67% and the total risk-based capital ratio was 15.98% as of September 30. The tangible common equity ratio was 8.28% according to SNL Financial.

Park National raised $27.6 million in common equity from the through the exercise of warrants through the first three quarters and another $4.8 million through the sale of shares to two institutional investors in December.

Stock Ratios

The shares trade for two times tangible book value according to SNL and 15 times the 2011 consensus earnings estimate of $5 a share. The forward P/E declines to 12 based on the 2012 consensus earnings estimate of $6.32 a share.

Analyst Ratings

Three of the six analysts covering Park National Corporation rate the shares a buy, while the other three analysts recommend investors hold the shares.

3. Tower Bancorp

Company Profile

Shares of Tower Bancorp ( TOBC) of Harrisburg, Pa. closed at $21.95 Monday, up 1% year-to-date. Based on a quarterly payout of 28 cents, the shares have a dividend yield of 5.10%.

On December 21, the company raised an estimated $47.8 million in common equity after expenses, through an offering of common shares.

On December 10, Tower completed its acquisition of First Chester County Corp. of West Chester, Pa. in an exchange of shares valued at $49.5 million. First Chester had total assets of about $1.14 billion.

Income Statement

Net income for the third quarter was $2.5 million, or 35 cents a share, increasing from $1.7 million, or 30 cents a share, a year earlier. The company reported a third-quarter tax-adjusted net interest margin of 3.64%, increasing from 3.58% during the third quarter of 2009.

The ROA for the third quarter was 0.63% and the dividend payout ratio was 89%.

Balance Sheet

Total assets were $1.6 billion as of September 30 and the nonperforming assets ratio was 1%. The third-quarter net charge-off ratio was a very low 0.16% and reserves covered 0.95% of total loans as of September 30.

The Tier 1 leverage ratio was 9.45% and the total risk-based capital ratio was 13.18% as of September 30. The tangible common equity ratio was 9.41% according to SNL Financial.

Stock Ratios

The shares trade right at tangible book value according to SNL - the cheapest by that measure among this group of ten holding companies. The forward price-to-earnings ratio is 10, based on the 2011 consensus earnings estimate of $2.17 a share.

Analyst Ratings

Tower Bancorp appears to be a bargain based on its stock price ratios, and two out of three analysts covering the company rate the shares a buy, with the remaining analyst recommending investors hold.

2. New York Community Bancorp

Company Profile

Shares of New York Community Bancorp ( NYB) Westbury closed at $19.13 Monday, up 40% year-to-date. Based on a quarterly payout of 25 cents, the shares have a forward dividend yield of 5.23%.

On December 21, the company announced it would split the roles of chairman and chief executive officer, with Joe Ficalora remaining as CEO and longtime board member and real estate developer Dominick Ciampa taking over as non-executive chairman of the board on January 3.

Income Statement

For the third quarter, New York Community reported net income of $135.6 million, or 31 cents a share, increasing from $98.6 million, 28 cents a share, during the third quarter of 2009. A major factor in the earnings improvement was $76.5 million in mortgage banking income during the third quarter - a business acquired as part of the company's purchase of the failed AmTrust from the FDIC in December 2009. For more details on New York Community's improved operating earnings and its lending business, please see TheStreet's 10 Banks with Real Earnings Improvement.

New York Community's third-quarter ROA was 1.31% -- the highest among this group of 10 holding companies - and its dividend payout ratio was 81%.

Balance Sheet

Total assets were $41.7 billion as of September 30, with a nonperforming assets ratio of 1.76%. The company's third-quarter net charge-off ratio was a low 0.27% and loan loss reserves covered 0.53% of total loans as of September 30, according to SNL Financial.

The Tier 1 leverage ratio was 8.87% and the total risk-based capital ratio was 14.35% as of September 30. According to SNL, the tangible common equity ratio was 7.59%.

Stock Ratios

The shares trade for 2.8 times tangible book value according to SNL - the highest by this measure among the companies listed here. The forward P/E is 14 based on the 2011 consensus earnings estimate of $1.34 a share.

Analyst Ratings

Out of 18 analysts covering New York Community Bancorp, 10 rate the shares a buy, seven have hold ratings and one analyst recommends selling the shares. The new and highly profitable mortgage business acquired from AmTrust looks to be a major profit center for the bank as the economy recovers.

1. BancorpSouth

Company Profile

Shares of BancorpSouth ( BXS) of Tupelo, Miss. closed at $16.02 Monday, down 28% year-to-date. Based on a quarterly payout of 22 cents, the shares have a dividend yield of 5.49%.

While this is the highest dividend among the bank and thrift holding companies listed here, the payout is not well-supported by earnings, as the payout ratio for the third quarter was 169%, and the company posted a net loss of $12.6 million during the second quarter.

Following BancorpSouth's third-quarter earnings announcement, Jeff Davis of Guggenheim Securities said he was "mildly surprised" that the company didn't reduce its dividend in light of rising credit costs and said his firm "assume a cut occurs no later than mid-2011."

Income Statement

Net income for the third quarter was $11.3 million, or 13 cents a share, compared to $21.5 million, or 26 cents, a year earlier. The company's third-quarter results included a tax benefit of $9.8 million. The provision for credit losses was $54.9 million, rising from $22.5 million a year earlier. Davis said he expects the company to post a fourth-quarter net loss as it continues to builds its loan loss reserves.

The third-quarter net interest margin was 3.64%, down from 3.77% a year earlier and the ROA was 0.34%.

Balance Sheet

Total assets were $13.6 billion as of September 30 and the NPA ratio was 3.21%, increasing from 2.57% the previous quarter and 1.23% a year earlier. The third-quarter net charge-off ratio was 2.14% and reserves covered 2.13% of total loans as of September 30.

The Tier 1 leverage ratio was 8.26% and the total risk-based capital ratio was 11.82% as of September 30. The tangible common equity ratio was 7.11% and while Davis described the capital levels as "okay," but said "it will not build, in our view, without a dividend cut."

Stock Ratios

The shares trade for 1.4 times tangible book value and 28 times the consensus earnings estimate of 57 cents a share for 2011. The forward P/E drops to 14, based on the 2012 consensus earnings estimate of $1.13 a share.

Analyst Ratings

While BancorpSouth features the highest dividend payout among this group of 10 holding companies, the dividend appears on shaky ground. All 12 analysts covering the company rate the shares a hold.

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

>To see these stocks in action, visit the 10 Bank Dividend Stocks portfolio on Stockpickr.

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

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To submit a news tip, send an email to: tips@thestreet.com.
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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