Banks use their capital and expertise to help businesses grow while offering consumers essential financial products like mortgages and credit cards. But concerns about loan losses and tightening regulations have tempered enthusiasm, limiting the banking industry’s gains to 7.8% over the past six months. This return lagged the S&P 500’s 21.1% climb.
The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. Keeping that in mind, here is one bank stock boasting a durable advantage and two that may face trouble.
Two Bank Stocks to Sell:
Triumph Financial (TFIN)
Market Cap: $1.44 billion
Originally focused on traditional banking before pivoting to serve the transportation sector, Triumph Financial (NYSE: TFIN) provides specialized financial services to the trucking industry, including payments processing, factoring, banking, and data intelligence solutions.
Why Is TFIN Risky?
- Annual net interest income growth of 1.8% over the last five years was below our standards for the banking sector
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 22.2% annually while its revenue grew
- Insufficient tier one capital ratio of 9.9% leaves little margin for error in meeting regulatory liquidity requirements
Triumph Financial is trading at $60.14 per share, or 1.5x forward P/B. Read our free research report to see why you should think twice about including TFIN in your portfolio.
Lake City Bank (LKFN)
Market Cap: $1.44 billion
Dating back to 1872 and deeply rooted in Indiana's communities, Lakeland Financial Corporation (NASDAQ: LKFN) operates Lake City Bank, providing commercial and consumer banking services throughout Northern and Central Indiana.
Why Are We Wary of LKFN?
- Muted 5% annual revenue growth over the last five years shows its demand lagged behind its banking peers
- 5.8% annual net interest income growth over the last five years was slower than its banking peers
- Incremental sales over the last five years were less profitable as its 3.3% annual earnings per share growth lagged its revenue gains
Lake City Bank’s stock price of $58.05 implies a valuation ratio of 1.8x forward P/B. To fully understand why you should be careful with LKFN, check out our full research report (it’s free).
One Bank Stock to Watch:
First BanCorp (FBP)
Market Cap: $4.00 billion
Tracing its roots back to 1948 in San Juan, First BanCorp (NYSE: FBP) is a bank holding company that provides commercial banking, consumer financing, mortgage services, and insurance products across Puerto Rico, the U.S. mainland, and the Caribbean.
Why Does FBP Stand Out?
- Differentiated product suite leads to a best-in-class net interest margin of 4.8%
- Non-interest operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 17.9% exceeded its revenue gains over the last five years
At $26.36 per share, First BanCorp trades at 2x forward P/B. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
