US banks continue bull run in July

US bank stocks eclipsed the broader market for the second consecutive month.

The market cap-weighted S&P US BMI Banks index delivered a total return of 4.5% in July, compared to a 0.1% decline in the S&P 500. In the year through July 31, the bank index posted a 12.1% return, outpacing the S&P 500 by 2 percentage points.

In an S&P Global Market Intelligence analysis of 202 banks, the group achieved a median return of 3.0% in July and 23.9% in the year through July. The top monthly market performers were New Canaan, Connecticut-based Bankwell Financial Group Inc. and Coral Gables, Florida-based Amerant Bancorp Inc., both posting returns of 16.0%. Notably, Amerant is experiencing deposit inflows from Venezuela.

The median price-to-adjusted tangible book value (TBV) of the banks included in the analysis increased to 164.1% from 159.5% as of June 30 and 140.0% as of Dec. 31, 2025. Only six of the banks traded below 100% of their adjusted TBV, while 40 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 a mutual bank conversion or an IPO 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

As of July 31, BCB Bancorp Inc. was the least expensive bank in the analysis. The Bayonne, New Jersey-based bank ranked second at the end of June. A negative 6.8% total return in July lowered BCB's price-to-adjusted TBV to 70.9%.

BCB hired Thomas O'Brien as president and CEO, effective June 1. In May, it 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 bank 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.

BCB reported its second-quarter earnings on Aug. 3, after the data compilation date for the analysis, revealing a net loss of $14.8 million. The loss was primarily driven by a $19.0 million provision for credit losses, up from $2.8 million in the first quarter. Results were also impacted by a $2.6 million loss on a loan transferred to held-for-sale from nonaccrual status and a $5.3 million noncash goodwill impairment charge.

First Internet Bancorp, which had been the cheapest bank for five consecutive months, ranked third as of July 31. The bank's return in July was 6.0%.

Coastal Financial Corp. had by far the weakest monthly market performance in the analysis with a negative 47.1% return. Its price-to-adjusted TBV dropped to 104.7% at July 31 — the eighth lowest valuation — from 195.5% at June 30. The Everett, Washington-based bank reported a $68.8 million credit expense in the second quarter related to a banking-as-a-service relationship, resulting in a net loss of $42.1 million for the period.

Three other banks on the bottom 20 valuation list — No. 9 OceanFirst Financial Corp., No. 16 FirstSun Capital Bancorp and No. 19 Banc of California Inc. — reported losses in the second quarter, according to earnings releases filed by Aug. 2.

The net loss at Toms River, New Jersey-based OceanFirst was attributed to $42.8 million of expenses related to its acquisition of Flushing Financial Corp., which was completed June 1.

Denver-based FirstSun incurred $57.6 million in expenses related to the acquisition of First Foundation Inc. Its results were also affected by a quarter-over-quarter increase in net charge-offs to $42.4 million from $10.6 million, primarily due to two commercial and industrial loans.

Despite these challenges, the bank reported pre-provision net revenue that exceeded the consensus estimate, as well as less TBV dilution from the First Foundation deal than originally projected. Additionally, FirstSun announced a share repurchase plan of up to $150 million.

Meanwhile, Banc of California's second-quarter results were impacted by a balance sheet restructuring, which resulted in a $256.7 million pretax loss on securities. The Los Angeles-based bank's adjusted TBV per share declined to $16.59 at June 30 from $17.57 at March 31.

No. 10 Bank OZK's adjusted TBV per share fell sequentially to $47.20 from $47.48. The Little Rock, Arkansas-based bank's nonperforming assets (NPAs) on an as-reported basis increased 31.5% sequentially to $593.2 million. Bank OZK also experienced higher net charge-offs.

Despite reporting a profit for the third quarter in a row, No. 14 Flagstar Bank NA's adjusted TBV per share decreased to $12.73 from $13.20 as of March 31. The Hicksville, New York-based bank also announced a $250 million stock buyback plan.

For No. 20 WaFd Inc., share repurchases represent a lower-tier option when it comes to deploying excess capital. Organic growth is at the top of the list, followed by M&A. But the Seattle-based bank's valuation is an obstacle to making a deal financially attractive.

– 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 July 31, 2026.

Most expensive banks

Pathward Financial Inc. became the most expensive bank in the analysis at the end of July with a price-to-adjusted TBV of 526.7%. It is consistently one of the highest valued banks and was last ranked first as of March 31.

Pathward's reported NPAs as of June 30, the vast majority of which are commercial finance loans, soared 131.6% from March 31 and represented 3.79% of total assets. In its second-quarter earnings release, the bank disclosed that the primary reason for the increase in nonperforming commercial finance loans was related to certain renewable energy construction projects with a common developer. Pathward continues to work with other parties in these projects to bring them to completion.

On Pathward's July 22 earnings conference call, CEO Brett Pharr said that the projects are solar. "There was some speeding up to get some things done because of the expiring of tax credits," the executive said.

Because of the surge in NPAs, Pathward had the largest gap in the analysis — 185 percentage points — between its price-to-adjusted TBV and price-to-basic TBV ratios. That gap could narrow next quarter, as CFO Greg Sigrist said on the call that about $100 million of past due loans had become current subsequent to June 30.

Additionally, Sigrist said, "We have also identified a working capital loan that we believe involves a sophisticated fraud within what we understand to be a viable operating company. Due to the fraud, it is possible there is a portion of the loan that we estimate may be uncollectible, also resulting in a specific reserve."

Based on its negative cumulative deposit beta from the second quarter of 2024 to the first quarter of 2026, Pathward is one of the banks that could thrive in a higher interest rate environment. Other highly valued banks that potentially could benefit from rate hikes include No. 2 The Bancorp Inc. and No. 3 Dallas-based Triumph Financial Inc., both of which rose to near the top of the industry in terms of highest cumulative loans and leases beta.

While the three most expensive banks by price-to-adjusted TBV did not alter their dividend strategy, three other banks in the top 10 announced quarterly cash dividend increases in July. Syracuse, New York-based Community Financial System Inc., ranked fourth, raised its dividend to 49 cents per share from 47 cents per share. Manitowoc, Wisconsin-based Bank First Corp., ranked sixth, increased its dividend to 60 cents per share from 55 cents per share, while seventh-ranked Bank of America Corp. raised its dividend to 32 cents per share from 28 cents per share.