SunTrust, Washington Federal Shares Down On Analyst Comments

New York, NY (AHN) - SunTrust Bank and Washington Federal both saw their shares hit fresh 52-week lows after a Friedman, Billings, Ramsey and Co. analyst said the banks could suffer losses due to their large residential construction loan portfolios.

"In the coming quarters, we expect that single-family construction non-performers and losses will continue to grow rapidly, weighing on the valuations of the most exposed banks," wrote analyst Paul J. Miller Jr. in a note to clients, according to the Associated Press.

SunTrust has about $7.8 billion in residential construction loans in its portfolio, 6.3 percent of total loans, said Miller. Washington Federal's total loan portfolio consists of roughly 20 percent of these loan types.

Miller named SunTrust and Washington Federal as the most at risk among the financial institutions he covers due to their residential construction loan exposure.

Shares of Washington Federal finished 8 percent lower at $15.94. SunTrust shares were lower 9 percent, closing Monday's session at $31.74.