US bank stocks follow the broader market down in March

Market uncertainty, exacerbated by the Middle East war, led to a widespread downturn in equities during March. Financial stocks, particularly banks, held up better than most other sectors.

The 205 banks in an S&P Global Market Intelligence analysis had a median total return of negative 0.4% in March, outperforming the market-cap-weighted S&P US BMI Banks index's negative 1.8% and the S&P 500's negative 5.0%. Only 14 banks in the analysis had a monthly return equal to or worse than negative 5%.

The median price-to-adjusted tangible book value (TBV) of the banks included in the analysis was 137.4% at March 31, down from 139.3% at the end of February and 140.0% as of Dec. 31, 2025. Nineteen of the banks traded below 100% of their adjusted TBV, while 21 were above 200%.

S&P Global Market Intelligence analyzed US banks trading on the Nasdaq, NYSE or NYSE American with total assets of more than $3 billion. The analysis excludes banks in the mutual holding company ownership structure and other operating subsidiaries.

Adjusted tangible book value is calculated as the sum of tangible common equity, loss reserves and unrealized gain or loss from held-to-maturity securities, tax-adjusted at the 21% corporate rate, less nonperforming assets and loans 90 or more days past due but still accruing interest, divided by common shares outstanding.

Least expensive banks

With a price-to-adjusted TBV of 51.3% as of March 31, First Internet Bancorp was the least expensive bank in the analysis for the second consecutive month. The digital bank had been ranked No. 2 at Jan. 30 and No.1 for the fourth quarter of 2025.

On April 1, Irving, Texas-based First Foundation Inc., the second-cheapest bank, completed its sale to Denver-based FirstSun Capital Bancorp, which ranked No. 16 on the bottom valuation list as of March 31. According to a Form S-4 filing, the roles were reversed from a few years ago when First Foundation was evaluating an acquisition of FirstSun.

In an investor presentation, FirstSun estimated that the transaction would be 14.3% dilutive to TBV on a GAAP basis, resulting in an earnback period of 3.3 years. On a cash basis, the bank modeled TBV accretion of 7%. FirstSun also expects to restructure First Foundation's balance sheet and pursue organic growth opportunities in Texas and Southern California.

Two other companies on the least-expensive bank list — Toms River, New Jersey-based OceanFirst Financial Corp., at No. 10, and Uniondale, New York-based Flushing Financial Corp., at No. 5 — are combining. OceanFirst announced the acquisition of Flushing on Dec. 29, 2025. In a Form 8-K filing, OceanFirst disclosed that the purchase accounting summary with interest rate marks produced TBV dilution of 6.4% and an earnback of 3.1 years. The transaction, which is part of OceanFirst's growth pivot, features a $225 million investment from Warburg Pincus LLC.

Investors expressed immediate disappointment with the deal, but the stocks began recovering in January. OceanFirst, which grew commercial bank loan originations in the fourth quarter of 2025, had a 1.6% total return in the first quarter of 2026; Flushing's year-to-date return through March 31 was 2.7%.

On March 31, Bank of Hope — a unit of Hope Bancorp Inc., the eighth least expensive bank in the ranking — announced the acquisition of the commercial banking unit of SMBC MANUBANK from Sumitomo Mitsui Financial Group Inc. The Los Angeles-based Bank of Hope is projecting TBV dilution of about 4.5% with an approximate 2-year earnback period. Hope Bancorp had filed a mixed shelf registration statement earlier in March.

No. 7-ranked Northfield Bancorp Inc., based in Woodbridge, New Jersey, is a pending merger target of Fair Lawn, New Jersey-based Columbia Financial Inc., which is undergoing a simultaneous second-stage conversion.

No. 4-ranked Eagle Bancorp Inc. is the target of an activist investor campaign initiated by Diligence Capital Management LLC. The Bethesda, Maryland-based bank has invalidated the activist investor's board nominee slate and shareholder proposals.

No. 18-ranked MVB Financial Corp. announced the resignation of director Glen Herrick, who had disagreements with the board about the company's corporate governance and financial performance. The Fairmont, West Virginia-based bank was the fourth-worst market performer among the 205 banks in the analysis in March, with a return of negative 8.0%.

– Read some of the day's top news and insights from S&P Global Market Intelligence. – Set email alerts for future Data Dispatch articles. – Access S&P Global Market Intelligence's calculations for price-to-adjusted tangible book value as of March 31, 2026.

Most expensive banks

Pathward Financial Inc. and The Bancorp Inc. were the two most expensive banks in the analysis for the third month in a row. Their price-to-adjusted TBVs at the end of March were 414.6% and 366.7%, respectively. Both banks reported significant movements for various credit quality metrics in the fourth quarter of 2025.

Among major-exchange traded US banks, Pathward had the highest year-over-year increase — 189 basis points — in its commercial real estate allowance ratio in the fourth quarter of 2025. The Bancorp, which had more than 30% of its gross loans in the multifamily sector at year-end 2025, lowered its multifamily delinquency ratio by 233 basis points sequentially to 1.09%.

The No. 18 bank by highest valuation, Carter Bankshares Inc., had the second-best total return in the analysis at 11.9% in March. The Martinsville, Virginia-based bank completed a bulk problem loan sale last month. Carter Bankshares estimated that the transaction could boost its basic TBV by approximately $3.49 per share, or 18.5%.

Three of the Big 4 US banks — JPMorgan Chase & Co., Bank of America Corp. and Wells Fargo & Co. — are on the top 20 valuation list. The fourth member of the group, Citigroup Inc., ended March trading at 113.7% of adjusted TBV, which was the 36th-lowest ratio in the analysis. Citigroup recently has been speculated as a potential buyer of a major regional bank or a brokerage firm, many of which trade at much higher valuation levels than Citigroup, but the company has denied such plans. Citigroup's relatively weak currency could be a deterrent if it were to pursue a large transaction. On the other hand, the highest-valued banks in the analysis could see substantial TBV accretion with opportunistic M&A activity.