Shares of both companies closed lower, leading broad declines in the banking sector. Investors fretted about the longer-term implications of rising short-term interest rates, and weakened lending results at less-diversified rivals such as Washington Mutual Inc.

"Fundamentals for banks are very challenging," said Adam Compton, research analyst at RCM Global Investors in San Francisco, which invests more than $120 billion. "Even if you're growing loans, it's not helping revenues because funding costs have risen so much."

On the New York Stock Exchange, Citigroup closed down 32 cents, or 0.6 percent, at $49.87, while Bank of America fell 55 cents, or 1 percent, to $53.26. The Philadelphia KBW Bank Index fell 0.7 percent.