JPMorgan, Wells Fargo among best-performing bank stocks in April

Major US bank stocks had better performances in April than they did a month earlier, when two bank failures shook the industry.

Exchange-traded banks recorded a median month-to-date return of negative 5.4% in April, compared to a negative 17.2% in March and a positive 0.2% return in February. The S&P US BMI Banks index had a positive 1.7% return for the month, while the S&P 500 recorded a positive 1.6% return.

Many US banks announced first-quarter results in April, with the four biggest banks emerging as relative winners amid the turmoil in the banking sector and most regional banks booking weaker earnings sequentially.

Best-performing stocks

New York Community Bancorp Inc. was the best-performing bank stock in April, returning 18.3% month to date. The company reported first-quarter results that showed some of its new earnings power after a pair of transformative deals: the purchase of substantially all the deposits and certain loan portfolios of Signature Bridge Bank NA and the acquisition of Flagstar Bancorp Inc.

West Reading, Pa.-based Customers Bancorp Inc. claimed the second spot as it posted a 17.9% return. Customers Bancorp's stock, one of the most volatile during the March turmoil, received a positive response after the company's first-quarter results.

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Prior to announcing its deal for failed First Republic Bank, JPMorgan Chase & Co. already earned a spot on the best-performing bank stocks list with a return of 6.9%. JPMorgan solidified its position as the "go-to industry leader in times of turmoil" through the deal, Piper Sandler analyst Scott Siefers said.

Wells Fargo & Co. was also part of the best-performing bank stocks with a positive 6.3% return.

Little Rock, Ark.-based Bank OZK posted a 5.5% return for the month. Following Bank OZK's first-quarter report, analysts expressed concern over the bank's concentrated loan book and funding.

Worst-performing stocks

HomeStreet Inc. led the list of the worst-performing bank stocks in April with a month-to-date return of negative 45.7%, notably worse than the other banks on the list. On April 26, Wedbush Securities analyst David Chiaverini downgraded the Seattle-based company to "neutral" from "outperform," citing intensified funding pressures.

HomeStreet experienced a "challenging" first quarter with lower-than-expected net interest income driven by a compressed margin and increased funding costs, Chiaverini said.

Fresno, Calif.-based Central Valley Community Bancorp ranked second with a negative 29.1% return, followed by Anchorage, Alaska-based Northrim BanCorp Inc. with a negative 26.8% return.

Atlantic Union Bankshares Corp. ended April with a return of negative 18.3%. In the same month, the Richmond, Va.-based company disclosed the sale of available-for-sale securities worth $505.7 million at a pretax loss of $13.4 million during the first quarter and set a $5 million legal reserve in response to a Consumer Financial Protection Bureau investigation over its overdraft policy.