US banks lag broader market in August

The rally in US bank stocks cooled in August.

The market cap-weighted S&P US BMI Banks index recorded a negative 0.7% total return last month, trailing the S&P 500's 2.7% return. Smaller-cap bank stocks performed even worse. In an S&P Global Market Intelligence analysis of 203 banks, the group had a median return of negative 2.7% in August.

The top monthly market performer was Everett, Washington-based Coastal Financial Corp., which rose 14.9%. The stock recovered some of its losses from July, when it was down 47.1% following a second-quarter credit expense of $68.8 million related to a banking-as-a-service (BaaS) relationship.

The median price-to-adjusted tangible book value (TBV) of the banks included in the analysis was 156.8% as of Aug. 31, down from 164.1% as of July 31 but up from 140.0% as of Dec. 31, 2025. Only six of the banks traded below 100% of their adjusted TBV, while 35 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 June 30, 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

BCB Bancorp Inc. was the least expensive bank in the analysis for the second consecutive month, ending August with a price-to-adjusted TBV of 66.7%. The Bayonne, New Jersey-based bank also was the weakest market performer, with a negative 14.4% total return last month.

On Aug. 3, BCB reported its second-quarter earnings, revealing a net loss of $14.8 million. The red ink was primarily caused by a $19.0 million loan loss provision, up from $2.8 million in the first quarter. Results also were impacted by a $2.6 million loss on a nonaccrual construction loan that was transferred to held-for-sale status as well as goodwill impairment of $5.3 million.

BCB hired Thomas O'Brien as president and CEO, effective June 1. In May, it had 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 and potentially add capital. On June 18, BCB announced the suspension of its quarterly cash dividends, which will save about $1.86 million of capital each quarter. And on Aug. 14, the bank filed a registration statement for a mixed shelf offering.

On BCB's Aug. 3 earnings call, O'Brien said, "I haven't gone to the board with any capital recommendations or projections. I do think we will be in a position to have some meaningful clarity around Labor Day."

Chevy Chase, Maryland-based Forbright Inc. and Raleigh, North Carolina-based First Carolina Financial Services Inc. completed initial public offerings in June and are new to the analysis. As of Aug. 31, they ranked No. 8 and No. 15, respectively, by lowest price-to-adjusted TBV. On Aug. 21, Forbright announced a branch sale transaction, further committing to a nationwide business model.

– 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 Aug. 31, 2026.

Most expensive banks

For the second consecutive month, Pathward Financial Inc. traded at the highest valuation in the analysis. As of Aug. 31, its price-to-adjusted TBV was 485.9%, down from 526.7% at the end of July. Like several other banks that offer a BaaS platform, Pathward boasts a strong deposit franchise.

No. 15 Stock Yards Bancorp Inc. raised its quarterly cash dividend by 1 cent per share. At the end of August, the Louisville, Kentucky-based bank's dividend yield was 1.67%.

WSFS Financial Corp., ranked No. 17, filed a mixed shelf registration statement Aug. 24. As of June 30, the Wilmington, Delaware-based company reported a leverage ratio of 10.35% and a common equity Tier 1 ratio of 13.76%.

No. 20 CVB Financial Corp. was one of HoldCo Asset Management LP's top holdings as of June 30. The activist asset manager increased its position in the Ontario, California-based bank by 45.0% during the second quarter.