US bank stocks enjoy banner month in June

The US banking sector experienced a broad-based market rally in June.

The market cap-weighted S&P US BMI Banks index's total return for the month was 9.3%, compared to a 1% decline in the S&P 500. In an S&P Global Market Intelligence analysis of 203 banks, the group returned 8.6% on a median basis in June.

All 203 banks in the analysis generated positive total returns for the month, and only 21 returned 5.0% or less. The monthly total return leaders were Martinsville, Virginia-based Carter Bankshares Inc. and Damariscotta, Maine-based First Bancorp Inc., with returns of 24.6% and 19.6%, respectively.

The June rally lifted sector valuations. The median price-to-adjusted tangible book value (TBV) of the banks included in the analysis jumped up to 159.5% as of June 30 from 147.3% at May 29 and 140.0% as of Dec. 31, 2025. Just eight of the banks traded below 100% of their adjusted TBV, while 41 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 as well as banks that completed an initial public offering subsequent to March 31, 2026.

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 71.6% as of June 30, First Internet Bancorp was the least expensive bank in the analysis for a fifth consecutive month. The digital bank ranked No. 2 at Jan. 30 and No. 1 for the fourth quarter of 2025.

No. 2-ranked BCB Bancorp Inc. hired Thomas O'Brien as president and CEO, effective June 1. In May, the Bayonne, New Jersey-based bank announced the departure of its previous president and CEO, Michael Shriner.

O'Brien intends to focus on improving BCB's credit quality and balance sheet strength. Under new leadership, the company is taking steps to preserve capital. On June 18, BCB announced the suspension of its quarterly cash dividends, which will save about $1.86 million of capital each quarter.

Bethesda, Maryland-based EagleBank and parent company Eagle Bancorp Inc., the third-cheapest bank in the analysis, on June 30 disclosed it settled a US Justice Department investigation about alleged Bank Secrecy Act violations by entering into a nonprosecution agreement, which includes paying a $9.1 million fine and forfeiting $736,515.

Woodbridge, New Jersey-based Northfield Bancorp Inc., which had the fourth-lowest valuation, announced a sale to Fair Lawn, New Jersey-based Columbia Financial Inc. on Feb. 2. Columbia is simultaneously undertaking a second-stage mutual bank conversion, with a firm commitment underwritten offering expected to commence the week of July 6 following the conclusion of its subscription offering.

No. 12-ranked Bank OZK was the largest US bank by total assets, that exceeded the commercial real estate concentration and growth criteria as of March 31, according to regulatory guidance. The Little Rock, Arkansas-based bank's ratio of construction and development loans to Tier 1 capital and allowance for loan and lease losses was above the 100% threshold at 118.2%.

The 14th-cheapest bank in the analysis, Hicksville, New York-based Flagstar Bank NA, is trying to gain efficiencies by widely adopting AI.

– 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 June 30, 2026.

Most expensive banks

The Bancorp Inc. reclaimed the No. 1 spot in the analysis for highest valuation with a price-to-adjusted TBV of 420.7% as of June 30. The digital bank ranked second at the end of May, first in April and second in March. At the end of the first quarter, The Bancorp was one of the largest US banks below the $10 billion asset threshold.

Dallas-based Triumph Financial Inc. dropped to the No. 2 valuation from No. 1 as of May 29. It was the only other bank to trade at over 4x adjusted TBV at the end of June.

Bank of America Corp. and San Antonio-based Cullen/Frost Bankers Inc., ranked No. 10 and No. 12, respectively, significantly added to their outstanding energy exposure in the first quarter. In terms of criticized loans across all segments, Bank of America reported a 1.5% sequential decline while Cullen/Frost had a 15.7% increase.