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The Banking industry as a whole closed the day down 0.7% versus the S&P 500, which was down 0.3%. Laggards within the Banking industry included Emclaire Financial ( EMCF), down 4.3%, First Financial Service ( FFKY), down 3.8%, Fauquier Bankshares ( FBSS), down 3.2%, First Federal of Northern Michigan Bancorp ( FFNM), down 2.3% and Royal Bancshares of Pennsylvania ( RBPAA), down 7.3%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Astoria Financial Corporation ( AF) is one of the companies that pushed the Banking industry lower today. Astoria Financial Corporation was down $0.23 (1.7%) to $13.38 on light volume. Throughout the day, 202,791 shares of Astoria Financial Corporation exchanged hands as compared to its average daily volume of 441,200 shares. The stock ranged in price between $13.32-$13.51 after having opened the day at $13.48 as compared to the previous trading day's close of $13.61.

Astoria Financial Corporation operates as the holding company for Astoria Federal Savings and Loan Association that provides various financial products and services in the United States. Astoria Financial Corporation has a market cap of $1.4 billion and is part of the financial sector. Shares are down 1.6% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts who rate Astoria Financial Corporation a buy, 2 analysts rate it a sell, and 6 rate it a hold.

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TheStreet Ratings rates Astoria Financial Corporation as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from TheStreet Ratings analysis on AF go as follows:

  • Powered by its strong earnings growth of 114.28% and other important driving factors, this stock has surged by 35.61% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AF should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • ASTORIA FINANCIAL CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, ASTORIA FINANCIAL CORP increased its bottom line by earning $0.60 versus $0.55 in the prior year. This year, the market expects an improvement in earnings ($0.66 versus $0.60).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Thrifts & Mortgage Finance industry. The net income increased by 127.8% when compared to the same quarter one year prior, rising from $13.85 million to $31.55 million.
  • The gross profit margin for ASTORIA FINANCIAL CORP is currently very high, coming in at 71.60%. It has increased significantly from the same period last year. Along with this, the net profit margin of 22.58% is above that of the industry average.

You can view the full analysis from the report here: Astoria Financial Corporation Ratings Report

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At the close, Fauquier Bankshares ( FBSS) was down $0.50 (3.2%) to $15.13 on average volume. Throughout the day, 1,793 shares of Fauquier Bankshares exchanged hands as compared to its average daily volume of 1,500 shares. The stock ranged in price between $15.13-$15.13 after having opened the day at $15.13 as compared to the previous trading day's close of $15.63.

Fauquier Bankshares, Inc. operates as a bank holding company for The Fauquier Bank that provides various consumer and commercial banking services to individuals, businesses, and industries in Virginia. Fauquier Bankshares has a market cap of $58.2 million and is part of the financial sector. Shares are up 13.9% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates Fauquier Bankshares as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from TheStreet Ratings analysis on FBSS go as follows:

  • Compared to where it was 12 months ago, this stock has enjoyed a nice rise of 25.34% which was in line with the performance of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • FAUQUIER BANKSHARES INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, FAUQUIER BANKSHARES INC increased its bottom line by earning $1.16 versus $0.56 in the prior year.
  • The net income growth from the same quarter one year ago has exceeded that of the Commercial Banks industry average, but is less than that of the S&P 500. The net income increased by 3.2% when compared to the same quarter one year prior, going from $0.96 million to $0.99 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, FAUQUIER BANKSHARES INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

You can view the full analysis from the report here: Fauquier Bankshares Ratings Report

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First Financial Service ( FFKY) was another company that pushed the Banking industry lower today. First Financial Service was down $0.14 (3.8%) to $3.59 on light volume. Throughout the day, 1,622 shares of First Financial Service exchanged hands as compared to its average daily volume of 4,300 shares. The stock ranged in price between $3.56-$3.73 after having opened the day at $3.67 as compared to the previous trading day's close of $3.73.

First Financial Service Corporation operates as the bank holding company for First Federal Savings Bank of Elizabethtown that provides various personal and corporate banking services and personal investment financial counseling services. First Financial Service has a market cap of $18.5 million and is part of the financial sector. Shares are down 24.0% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate First Financial Service a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates First Financial Service as a sell. The area that we feel has been the company's primary weakness has been its feeble growth in its earnings per share.

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Highlights from TheStreet Ratings analysis on FFKY go as follows:

  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, FIRST FINANCIAL SERVICE CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • FIRST FINANCIAL SERVICE CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, FIRST FINANCIAL SERVICE CORP continued to lose money by earning -$0.06 versus -$1.98 in the prior year. For the next year, the market is expecting a contraction of 400.0% in earnings (-$0.30 versus -$0.06).
  • FFKY, with its decline in revenue, underperformed when compared the industry average of 2.9%. Since the same quarter one year prior, revenues fell by 14.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
  • The gross profit margin for FIRST FINANCIAL SERVICE CORP is currently very high, coming in at 98.04%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, FFKY's net profit margin of 3.08% significantly trails the industry average.

You can view the full analysis from the report here: First Financial Service Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.