U.S. banks traded at a price-to-adjusted tangible book value ratio of 207.0% at May 31, the highest month-end median level since February 2017.
This group of companies has recorded positive median total returns in all but one month in 2018 so far and returned 4.0% during May. In the same period, the market cap-weighted SNL U.S. Bank and Thrift index and S&P 500 appreciated 0.3% and 2.4%, respectively.
As of May 31, New York-based CIT Group Inc. traded at the second-lowest price-to-adjusted TBV in S&P Global Market Intelligence's analysis. The bank returned negative 5.4% during May, making it the worst-performing stock on the top 25 list. CIT and Johnstown, Pa.-based AmeriServ Financial Inc. were the only companies in the analysis trading below their adjusted TBV at the end of May.

Santa Rosa, Calif.-based Luther Burbank Corp. entered the list at No. 10, with a price-to-adjusted TBV of 121.4% at May 31. The bank completed its IPO in December 2017. The other bank to enter the list in May was Yorktown Heights, N.Y.-based PCSB Financial Corp., which completed a mutual-to-stock conversion in April 2017.
Wyomissing, Pa.-based Customers Bancorp Inc. and Toano, Va.-based C&F Financial Corp. exited the list in May.
S&P Global Market Intelligence analyzed operating U.S. banks and thrifts trading on the Nasdaq, NYSE or NYSEAM, and with total assets of greater than $1 billion for the most recent quarter available. Public mutual holding companies are excluded from the analysis. Adjusted tangible book value is calculated as the sum of tangible common equity and loan loss reserves less nonperforming assets and loans 90 days past due but still accruing interest over common shares outstanding.
Did you enjoy this analysis? Click here to set up real-time alerts for data-driven articles on the U.S. financial sector. Click here for a webinar on creating a template for price-to-adjusted tangible book value. Click here to see S&P Global Market Intelligence's calculations for price-to-adjusted tangible book value as of May 31, 2018. Click here for a template that provides pricing trends and profitability ratios for financial institutions.
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