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US banks trading at lowest price-to-adjusted TBV as of June

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US banks trading at lowest price-to-adjusted TBV as of June

U.S. banks and thrift stocks dropped for only the second month this year in June. Last month, the median total return for the industry was a negative 0.9% and the SNL U.S. Bank & Thrift Index declined 1.6% while the S&P 500 rose 0.6%.

However, valuations actually rose slightly in June. As of June 29, U.S. banks and thrifts traded at a median 207.7% of adjusted tangible book value, up from 207.0% at the end of May.

S&P Global Market Intelligence analyzed operating U.S. banks and thrifts trading on the Nasdaq, NYSE or NYSEAM with more than $1 billion in assets for the most recent quarter available. Public mutual holding companies were 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.

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Wyomissing, Pa.-based Customers Bancorp Inc. entered the list at No. 16 after its stock dropped by 6.4% in June, pushing its price-to-adjusted TBV ratio to 130.4% at June 29, down from 139.4% at May 31. Customers crossed the $10 billion asset threshold for the first time in the first quarter.

Renton, Wash.-based First Financial Northwest Inc.'s resurgence continued, as its stock returned 12.8% in June, pushing its price-to-adjusted TBV ratio to 147.3% at June 29 and removing the company from the list. So far this year, the company's stock has returned 26.9%.

In other news, No. 21 Louisville, Ky.-based Porter Bancorp Inc. changed its name to Limestone Bancorp Inc. in June.

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