1 Bank Stock on Our Buy List and 2 We Ignore Radek Strnad Fri, October 16, 2026 at 7:39 AM EDT 4 min read PFS +1.09% ^GSPC +0.33% NIC +1.18% FFBC +2.01% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Banks play a critical role in the financial system, providing everything from commercial loans to wealth management and payment processing services. Still, investors are uneasy as banks face challenges from credit quality concerns and potential regulatory changes. These doubts have caused the industry to lag recently as banking stocks have collectively shed 1.3% over the past six months. This drawdown is a far cry from the S&P 500's 9.7% ascent.
Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. Taking that into account, here is one bank stock poised to generate sustainable market-beating returns and two that may face trouble.
Founded in 1839 and serving communities across New Jersey, Pennsylvania, and New York, Provident Financial Services (NYSE:PFS) operates a regional bank providing commercial, residential, and consumer lending alongside wealth management and insurance services.
Weak unit economics are reflected in its net interest margin of 3.4%, one of the worst among bank companies
Incremental sales over the last five years were less profitable as its 2.1% annual earnings per share growth lagged its revenue gains
Tangible book value per share was flat over the last five years, indicating it's failed to build equity value this cycle
At $22.20 per share, Provident Financial Services trades at 1x forward P/B. Dive into our free research report to see why there are better opportunities than PFS.
Tracing its roots back to 1863 during the Civil War era, First Financial Bancorp (NASDAQ:FFBC) is a bank holding company that provides commercial banking, lending, deposit services, and wealth management to individuals and businesses.
Why Do We Think Twice About FFBC?
9.3% annual net interest income growth over the last five years was slower than its banking peers
Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 9% annually
Estimated tangible book value per share growth of 10.7% for the next 12 months implies profitability will slow from its two-year trend
First Financial Bancorp is trading at $31.41 per share, or 1x forward P/B. If you're considering FFBC for your portfolio, see our FREE research report to learn more.
Starting as Green Bay Financial Corporation in 2000 before rebranding in 2002, Nicolet Bankshares (NYSE:NIC) is a regional bank holding company that provides commercial, agricultural, and consumer banking services primarily in Wisconsin, Michigan, and Minnesota.
Impressive 24.8% annual net interest income growth over the last five years indicates it's winning market share this cycle
Net interest margin expanded by 69 basis points (100 basis points = 1 percentage point) over the last two years, providing additional flexibility for investments
Additional sales over the last two years increased its profitability as the 26.2% annual growth in its earnings per share outpaced its revenue
Nicolet Bankshares's stock price of $163.94 implies a valuation ratio of 1.4x forward P/B. Is now a good time to buy? Find out in our full research report, it's free.
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