As Earnings Season Takes Off, Here Is A List Of America's 10 Worst Banks

As the Q2 2013 earnings season gets under way with big gains for JPMorgan Chase and Citigroup Inc., some banks have been left trailing behind.

According a Forbes report, these are America's worst banks.

10. First Commonwealth Financial

Headquarters: Indiana, Pa.
Assets: $6 billion
Price/Book value: 0.9
NPLs/Loans: 2.1%
Reserves/NPLs: 73%
First Commonwealth is the smallest of the bottom 10 banks. It rates poorly based on its return on average equity of 3.6% and its 11.7% leverage ratio. The bank did not respond to a request for comment.

9. Western Alliance Bancorporation

Headquarters: Phoenix
Assets: $7 billion
Price/Book value: 1.5
NPLs/Loans: 2.3%
Reserves/NPLs: 81%
"Western Alliance’s primary markets of Nevada, Arizona and California were among the hardest hit in the financial crisis," says a bank spokesperson. "We have since rebounded strongly with consistent improvement in asset quality, a stable interest margin, and tripling of our earnings per share. With over 10% net interest income growth three years running, we are one of the fastest organically growing banks in the nation."

8. Comerica

Headquarters: Dallas
Assets: $63 billion
Price/Book value: 0.8
NPLs/Loans: 1.6%
Reserves/NPLs: 89%
Comerica's net interest margin of 3% and Tier 1 capital ratio of 10.4% both rank among the bottom 10.

7. Regions Financial

Headquarters: Birmingham, Ala.
Assets: $122 billion
Price/Book value: 0.6
NPLs/Loans: 3.1%
Reserves/NPLs: 86%
Bank officials would not comment on Regions' rank on the Forbes list but pointed to the recent ratings upgrade by Moody's Investors Service. Regions' senior debt was upgraded from Ba3 to Ba1 as Moody's noted the bank's improved asset quality. The bank did not respond to a request for comment.

6. TCF Financial

Headquarters: Wayzata, Minn.
Assets: $18 billion
Price/Book value: 1.2
NPLs/Loans: 3.1%
Reserves/NPLs: 56%
S&P cut its credit rating on TCF in November and wrote, "The rise in TCF Financial's nonperforming assets in the third quarter and the resignation of its chief risk officer have compounded our concerns about its credit quality and operational risk." TCF did not respond to a request for comment on the Forbes ranking.

5. PrivateBancorp

Headquarters: Chicago
Assets: $13 billion
Price/Book value: 1.0
NPLs/Loans: 2.0%
Reserves/NPLs: 96%
Earnings have bounced back after huge losses in 2008 and 2009. The bank's return on average equity still ranks among the bottom quintile. The bank declined to comment.

4. First Horizon National

Headquarters: Memphis, Tenn.
Assets: $26 billion
Price/Book value: 1.0
NPLs/Loans: 2.6%
Reserves/NPLs: 63%
A bank spokesperson says, "Our non-strategic portfolio masks our results." He points to a $250 million second-quarter addition to the mortgage-repurchase reserve to put "legacy issues behind us."

3. Synovus Financial

Headquarters: Columbus, Ga.
Assets: $26 billion
Price/Book value: 1.0
NPLs/Loans: 3.6%
Reserves/NPLs: 59%
NPLs and NPAs are among the highest of any bank. It also ranks poorly on its level of reserves to NPLs. Synovus did not reply to a request for comment from Forbes.

2. First Midwest Bancorp.

Headquarters: Itasca, Ill.
Assets: $8 billion
Price/Book value: 1.0
NPLs/Loans: 3.9%
Reserves/NPLs: 48%
First Midwest had a bulk loan sale of problem loans in the third quarter that reduced its nonperforming loans by 46%. "We positioned ourselves to lower our future credit costs, which puts us in a strong position to perform. The core business is doing well," First Midwest CEO Michael Scudder told Forbes.

1. Doral Financial

Headquarters: San Juan, P.R.
Assets: $8 billion
Price/Book value: 0.2
NPLs/Loans: 10.9%
Reserves/NPLs: 20%
Doral has the highest ratios of NPLs and NPAs of any bank. Its large commercial real estate loan portfolio has been hurt by the struggling Puerto Rican economy. The bank has not turned a profit since 2005. S&P downgraded the bank’s credit rating two notches this week, to CCC- from CCC+. Doral did not reply to a request for comment from Forbes.