Bank stocks gave up some gains in February, but the list of institutions with the lowest price-to-adjusted tangible book values was largely unchanged.
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.
The median total return in February for banks and thrifts within the analysis criteria was negative 2.8%. In comparison, the market-cap weighted SNL U.S. Bank & Thrift index declined 3.7% and the S&P 500 was down 3.6%.
The median price-to-adjusted tangible book for the industry was 193.8% at Feb. 28. At the end of January, the industry traded at 202.1%.
Toano, Va.-based C&F Financial Corp. was the weakest market performer in the bank universe, with a negative 15.3% return. Monthly volume was 104,732 shares, up from 61,969 shares in January and representing 3% of the total shares outstanding.
Shares of Fairfield, N.J.-based Kearny Financial Corp., which is in the process of acquiring Clifton, N.J.-based Clifton Bancorp Inc., fell 5.8% last month. Kearny is approaching its three-year conversion anniversary in May. Port Angeles, Wash.-based First Northwest Bancorp and Philadelphia-based Beneficial Bancorp Inc. celebrated their anniversaries in January, while Wauwatosa, Wis.-based Waterstone Financial Inc.; Short Hills, N.J.-based Investors Bancorp Inc.; and Clifton reached the three-year mark last year.
Two companies entered the top-25 list in February: Beneficial and Yorktown Heights, N.Y.-based PCSB Financial Corp., which completed a mutual-to-stock conversion in April 2017. Exiting the list were Norwood, Ma.-based Blue Hills Bancorp Inc., which went public in July 2014, and First BanCorp. in Puerto Rico.
OFG Bancorp in Puerto Rico moved to the top of the valuation list, flipping positions with Johnstown, Pa.based AmeriServ Financial Inc. As of Feb. 28, OFG traded at a price-to-adjusted tangible book of 80.3%, while AmeriServ was at 83.4%.

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