Banks serve as the backbone of the economy, facilitating lending, deposits, and financial services that keep businesses and consumers moving forward. But concerns about loan losses and tightening regulations have tempered enthusiasm, limiting the banking industry’s gains to 8.8% over the past six months. This return lagged the S&P 500’s 15.6% climb.

The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. Taking that into account, here is one bank stock boasting a durable advantage and two we’re swiping left on.

Two Bank Stocks to Sell:

Hope Bancorp (HOPE)

Market Cap: $1.40 billion

With roots in serving Korean-American communities and now expanded to a multi-ethnic clientele across 12 states, Hope Bancorp (NASDAQ: HOPE) operates Bank of Hope, providing commercial and retail banking services with a focus on serving multi-ethnic communities across the United States.

Why Do We Avoid HOPE?

1. Loans are facing end-market challenges during this cycle, as seen in its flat net interest income over the last five years
2. Overall productivity fell over the last four years as its plummeting sales were accompanied by a degrading efficiency ratio
3. Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 6.6% annually, worse than its revenue

Hope Bancorp is trading at $10.94 per share, or 0.6x forward P/B. Dive into our free research report to see why there are better opportunities than HOPE.

Atlantic Union Bankshares (AUB)

Market Cap: $5.21 billion

Tracing its roots back to 1902 when it first opened its doors in Virginia, Atlantic Union Bankshares (NYSE: AUB) is a full-service regional bank providing commercial and retail banking, wealth management, and insurance services throughout Virginia and parts of Maryland and North Carolina.

Why Are We Cautious About AUB?

1. Inferior net interest margin of 3.4% means it must compensate for lower profitability through increased loan originations
2. Tangible book value per share was flat over the last five years, indicating it’s failed to build equity value this cycle
3. Capital generation will likely be soft over the next 12 months as Wall Street’s estimates imply tepid tangible book value per share growth of 6.5%

At $36.54 per share, Atlantic Union Bankshares trades at 1.1x forward P/B. Check out our free in-depth research report to learn more about why AUB doesn’t pass our bar.

One Bank Stock to Buy:

Pathward Financial (CASH)

Market Cap: $1.74 billion

Formerly known as Meta Financial until its 2022 rebranding, Pathward Financial (NASDAQ: CASH) provides banking-as-a-service solutions and commercial finance products, enabling partners to offer financial services like prepaid cards, payment processing, and lending options.

Why Will CASH Outperform?

1. Annual net interest income growth of 13.7% over the last five years was superb and indicates its market share increased during this cycle
2. Differentiated product suite leads to a Strong performance of its loan book leads to a High-yielding loan book and low cost of funds are reflected in its best-in-class net interest margin of 6.6%
3. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 16.3% exceeded its revenue gains over the last two years

Pathward Financial’s stock price of $76.33 implies a valuation ratio of 2.1x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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