3 Stocks Pushing The Banking Industry Lower

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The Banking industry as a whole closed the day down 0.2% versus the S&P 500, which was down 0.1%. Laggards within the Banking industry included Porter Bancorp ( PBIB), down 2.1%, Stewardship Financial ( SSFN), down 3.0%, Mackinac Financial ( MFNC), down 1.5%, Kentucky First Federal Bancorp ( KFFB), down 4.2% and 1st Century Bancshrs ( FCTY), down 2.0%.

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

1st Century Bancshrs ( FCTY) is one of the companies that pushed the Banking industry lower today. 1st Century Bancshrs was down $0.15 (2.0%) to $7.30 on average volume. Throughout the day, 5,500 shares of 1st Century Bancshrs exchanged hands as compared to its average daily volume of 4,100 shares. The stock ranged in price between $7.30-$7.30 after having opened the day at $7.30 as compared to the previous trading day's close of $7.45.

1st Century Bancshares, Inc. operates as a bank holding company for 1st Century Bank, National Association that provides a range of banking services. Its deposits products include business and personal checking, money market, certificates of deposits, attorney-client trust, and trust accounts. 1st Century Bancshrs has a market cap of $75.5 million and is part of the financial sector. Shares are up 4.2% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate 1st Century Bancshrs a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates 1st Century Bancshrs as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on FCTY go as follows:

  • The revenue growth came in higher than the industry average of 15.3%. Since the same quarter one year prior, revenues rose by 10.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for 1ST CENTURY BANCSHARES INC is currently very high, coming in at 94.70%. Regardless of FCTY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 14.37% trails the industry average.
  • 1ST CENTURY BANCSHARES INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, 1ST CENTURY BANCSHARES INC increased its bottom line by earning $0.76 versus $0.34 in the prior year. For the next year, the market is expecting a contraction of 63.1% in earnings ($0.28 versus $0.76).
  • Net operating cash flow has declined marginally to $1.45 million or 7.13% when compared to the same quarter last year. Despite a decrease in cash flow of 7.13%, 1ST CENTURY BANCSHARES INC is still significantly exceeding the industry average of -101.18%.
  • In its most recent trading session, FCTY has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Despite the stock's decline during the last year, it is still somewhat more expensive (in proportion to its earnings over the last year) than most other stocks in its industry. We feel, however, that other strengths this company displays offset this slight negative.

You can view the full analysis from the report here: 1st Century Bancshrs Ratings Report

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At the close, Mackinac Financial ( MFNC) was down $0.17 (1.5%) to $11.15 on average volume. Throughout the day, 1,723 shares of Mackinac Financial exchanged hands as compared to its average daily volume of 1,900 shares. The stock ranged in price between $11.15-$11.15 after having opened the day at $11.15 as compared to the previous trading day's close of $11.32.

Mackinac Financial Corporation operates as the holding company for mBank that provides commercial and retail banking products and services. Mackinac Financial has a market cap of $62.6 million and is part of the financial sector. Shares are up 14.4% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates Mackinac Financial as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share and unimpressive growth in net income.

Highlights from TheStreet Ratings analysis on MFNC go as follows:

  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • 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, MACKINAC FINANCIAL CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • The gross profit margin for MACKINAC FINANCIAL CORP is currently very high, coming in at 83.66%. Regardless of MFNC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 11.02% trails the industry average.
  • MACKINAC FINANCIAL CORP's earnings per share declined by 31.8% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, MACKINAC FINANCIAL CORP reported lower earnings of $1.00 versus $1.66 in the prior year.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Commercial Banks industry. The net income has significantly decreased by 36.0% when compared to the same quarter one year ago, falling from $1.26 million to $0.81 million.

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

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Porter Bancorp ( PBIB) was another company that pushed the Banking industry lower today. Porter Bancorp was down $0.02 (2.1%) to $0.96 on light volume. Throughout the day, 3,998 shares of Porter Bancorp exchanged hands as compared to its average daily volume of 14,900 shares. The stock ranged in price between $0.95-$0.98 after having opened the day at $0.98 as compared to the previous trading day's close of $0.98.

Porter Bancorp, Inc. operates as the bank holding company for PBI Bank that provides commercial and personal banking products and services, and financial services in Central Kentucky and Louisville. Porter Bancorp has a market cap of $12.8 million and is part of the financial sector. Shares are down 2.8% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates Porter Bancorp as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and weak operating cash flow.

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Highlights from TheStreet Ratings analysis on PBIB go as follows:

  • PBIB's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 25.19%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • Net operating cash flow has decreased to $1.43 million or 41.08% when compared to the same quarter last year. Despite a decrease in cash flow of 41.08%, PORTER BANCORP INC is still significantly exceeding the industry average of -101.18%.
  • 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, PORTER BANCORP INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for PORTER BANCORP INC is currently very high, coming in at 77.04%. Regardless of PBIB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PBIB's net profit margin of 0.38% is significantly lower than the industry average.
  • PBIB, with its decline in revenue, slightly underperformed the industry average of 15.3%. Since the same quarter one year prior, revenues fell by 16.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

You can view the full analysis from the report here: Porter Bancorp 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.

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