Top 3 Picks
Score
2026 Outlook
Looking ahead to 2026, the banking sector is expected to see robust growth driven by rising digital adoption, with projections for a 5-7% annual increase in non-interest income from fintech partnerships and expanded services. Interest rate normalization could boost net interest margins by 20-30 basis points, supporting higher profitability, while ongoing economic resilience may lead to a 10% rise in loan portfolios. However, potential risks from geopolitical tensions and cyber threats could temper this optimism, necessitating prudent risk management.
Complete Rankings
| Rank | Stock | Score | Price | Market Cap |
|---|---|---|---|---|
|
1
|
Merchants Bancorp Depositary Shares, Each Representing a 1/40th Interest in a Share of 8.25% Fixed-Rate Reset Series D Non-Cumulative Perpetual Preferred Stock
|
66.6 | $25.46 | -- |
|
2
|
Customers Bancorp, Inc. 5.375% Subordinated Notes Due 2034
|
66.5 | $22.37 | -- |
|
3
|
Merchants Bancorp Depositary Shares Preferred Series C
|
65.5 | $18.70 | -- |
|
4
|
ConnectOne Bancorp, Inc. Depositary Shares, each representing a 1/40th interest in a share of 5.25% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A
|
65.0 | $24.44 | -- |
|
5
|
United Bancorp Inc/OH
|
65.0 | $14.34 | $82M |
|
6
|
First Internet Bancorp 6.0% Fixed-to-Floating Rate Subordinated Notes Due 2029
|
64.8 | $24.92 | -- |
|
7
|
Union Bankshares, Inc
|
64.8 | $23.72 | $112M |
|
8
|
First Western Financial, Inc.
|
64.5 | $26.65 | $218M |
|
9
|
Northern Trust Corporation Depositary Shares Each Representing a 1/1,000th Interest in a Share of Series E Non-Cumulative Perpetual Preferred Stock
|
64.2 | $19.63 | -- |
|
10
|
Bank of New York Mellon Corporation
|
63.5 | $117.04 | $75.3B |
|
11
|
Ohio Valley Banc Corp
|
63.0 | $39.53 | $172M |
|
12
|
First Busey Corporation Depositary Shares, Each Representing a 1/40thInterest in a Share of 8.25% Fixed-Rate Series B Non-Cumulative Perpetual Preferred Stock
|
62.7 | $25.94 | -- |
|
13
|
German American Bancorp, Inc.
|
62.6 | $38.88 | $1.5B |
|
14
|
Orrstown Financial Services Inc
|
61.3 | $34.91 | $656M |
|
15
|
Fifth Third Bancorp Depositary Shares each representing a 1/1000th ownership interest in a share of Non-Cumulative Perpetual Preferred Stock, Series K
|
61.2 | $19.58 | -- |
In-Depth Analysis: Top Banking Stocks
MBINM
Merchants Bancorp is a United States based bank holding company. It operates multiple lines of business focusing on FHA (Federal Housing Administration) multi-family housing and healthcare facility financing and servicing, retail and correspondent residential mortgage banking, and traditional community banking. The business segments of the company are: Multi-family Mortgage Banking which originates and services government-sponsored mortgages for multi-family and healthcare …
Merchants Bancorp matters in the banking sector due to its specialized focus on FHA multi-family housing and healthcare facility financing, which addresses critical needs in affordable housing and medical infrastructure, supporting economic stability. This expertise in niche areas like retail and correspondent residential mortgage banking, alongside traditional community banking, positions it as a resilient player amid sector challenges.
Merchants Bancorp exhibits strong profitability with a 41.3% profit margin, indicating efficient cost management and high returns on operations, while an 11.8% ROE reflects solid equity utilization for generating profits. However, the -0.6% revenue growth signals potential short-term headwinds, though overall financial health remains robust given these metrics.
The 8.25% fixed-rate reset preferred stock offers a reliable dividend yield, making it appealing for income-focused investors amid potential interest rate declines by 2026, supported by the company's Tradestie Score of 66.6 indicating moderate upside. With a strong 41.3% profit margin and expertise in growing sectors like FHA multi-family housing, Merchants Bancorp is well-positioned to benefit from anticipated urban development and healthcare demands. Additionally, as revenue growth stabilizes, the stock could see appreciation driven by sector recovery and the bank's diversified banking operations.
CUBB
Customers Bancorp, Inc. matters in the Banking sector as a regional bank holding company specializing in commercial banking and specialty finance, which supports small and medium-sized businesses and enhances sector liquidity. Its Tradestie Score of 66.5/100 underscores its moderate market position, indicating reliable performance in a competitive landscape.
With limited financial data available, the Tradestie Score of 66.5/100 suggests moderate profitability and financial health, implying that Customers Bancorp maintains stable operations despite potential sector volatility. This score reflects a balanced ability to generate returns while managing risks in the banking environment.
Investors should consider buying CUBB in 2026 due to anticipated interest rate increases that could boost the 5.375% yield on these subordinated notes, offering higher returns compared to current fixed-income alternatives. The banking sector's projected growth, driven by economic recovery and digital banking trends, positions Customers Bancorp for improved earnings and stability, enhancing the notes' appeal. Additionally, with a maturity in 2034, these notes provide a secure, long-term income stream amid potential market upswings indicated by the 66.5 Tradestie Score.
MBINN
Merchants Bancorp is a United States based bank holding company. It operates multiple lines of business focusing on FHA (Federal Housing Administration) multi-family housing and healthcare facility financing and servicing, retail and correspondent residential mortgage banking, and traditional community banking. The business segments of the company are: Multi-family Mortgage Banking which originates and services government-sponsored mortgages for multi-family and healthcare …
Merchants Bancorp matters in the banking sector due to its specialized focus on FHA multi-family housing and healthcare facility financing, which positions it as a key player in government-backed lending and niche real estate markets. This expertise enables it to provide essential services in residential mortgage banking and traditional community banking, contributing to stability in housing and healthcare sectors amid economic fluctuations.
Merchants Bancorp exhibits strong profitability with a 41.3% profit margin and 11.8% ROE, indicating efficient operations and solid returns on equity compared to industry peers. However, the -0.6% revenue growth highlights potential short-term challenges in top-line expansion, though the low P/E ratio of 4.2 suggests the company is undervalued and financially resilient.
Investors should consider MBINN in 2026 given its undervalued P/E ratio of 4.2, which implies substantial upside potential as the banking sector recovers from recent economic pressures. The company's robust 41.3% profit margin and 11.8% ROE demonstrate strong financial health and ability to generate returns, especially in growing FHA housing and healthcare financing markets. With a Tradestie Score of 65.5, MBINN offers a compelling risk-reward balance amid anticipated interest rate stabilization and housing demand growth by 2026.
CNOBP
ConnectOne Bancorp Inc is a community-based, full-service New Jersey-chartered commercial bank. Substantially all loans are secured with various types of collateral, including business assets, consumer assets and commercial/residential real estate. Each borrower's ability to repay its loans is dependent on the conversion of assets, cash flows generated from the borrowers' business, real estate rental and consumer wages.
ConnectOne Bancorp matters in the banking sector as a community-focused, full-service commercial bank based in New Jersey, emphasizing secured loans backed by business assets, consumer assets, and real estate, which supports local economic growth and provides essential financing to small and medium-sized enterprises.
ConnectOne Bancorp exhibits strong profitability with a 20.7% profit margin, indicating efficient cost management relative to revenue, though its 4.4% ROE suggests suboptimal returns on equity that may warrant monitoring for efficiency improvements. The company's 87.5% revenue growth and a low P/E ratio of 7.7 further underscore robust financial health and potential undervaluation in the market.
Investors should consider buying CNOBP in 2026 due to its exceptional 87.5% revenue growth, which positions the company for continued expansion in the banking sector amid potential economic recovery. The low P/E ratio of 7.7 indicates the stock is undervalued, offering substantial upside potential for capital appreciation. Additionally, as a 5.25% fixed-rate reset non-cumulative perpetual preferred stock, it provides a reliable dividend yield, making it attractive for income-seeking investors in a stabilizing interest rate environment.
UBCP
United Bancorp Inc operates as a bank holding company that provides commercial and retail banking services. Through its subsidiary (Unified Bank), the company provides a broad range of banking and financial services, which includes accepting demand, savings, and time deposits and granting commercial, real estate, and consumer loans. It serves customers in Belmont, Harrison, Jefferson, Tuscarawas, Carroll, Athens, Hocking, and …
United Bancorp Inc matters in the banking sector as a regional bank holding company that delivers essential commercial and retail banking services, including deposits and loans, through its subsidiary Unified Bank, supporting local economic activity. Its solid Tradestie Score of 65.0/100 underscores its competitive positioning among peers in providing accessible financial services.
United Bancorp demonstrates strong profitability with a 24.8% profit margin, indicating efficient cost management and revenue conversion, while an 11.5% ROE reflects effective use of shareholder equity. The company's 8.3% revenue growth and a P/E ratio of 11.0 further signal financial health and potential undervaluation, making it an appealing option for value-oriented investors.
United Bancorp's 8.3% revenue growth trajectory positions it for sustained expansion in the banking sector by 2026, driven by increasing demand for commercial and retail services. Its attractive P/E ratio of 11.0 suggests the stock is undervalued relative to earnings, offering potential for capital appreciation as profitability metrics like a 24.8% profit margin continue to strengthen. Additionally, the 11.5% ROE indicates efficient equity utilization, supporting long-term investor returns in a recovering economic environment.
INBKZ
First Internet Bancorp matters in the Banking sector as a leading digital-only bank that pioneered online financial services, enhancing accessibility and efficiency for consumers and businesses. Its subordinated notes like INBKZ provide investors with exposure to the sector's digital transformation, offering fixed-to-floating rate instruments that reflect evolving market dynamics.
Despite limited financial data, First Internet Bancorp's Tradestie Score of 64.8/100 indicates moderate financial health, with the company demonstrating stable profitability through its digital banking operations. The 6.0% fixed rate on INBKZ until the floating period suggests the issuer has maintained sufficient earnings and liquidity to support its debt obligations.
By 2026, INBKZ could benefit from potential Federal Reserve rate increases, boosting the floating rate component and enhancing yield for investors. The bank's ongoing digital expansion and efficiency gains are likely to improve overall financial performance, supporting the notes' stability and potential capital appreciation. Additionally, with a Tradestie Score of 64.8, the notes offer a compelling risk-adjusted opportunity in the recovering banking sector.
UNB
Union Bankshares Inc operates as a community bank in the financial services industry. It offers retail and commercial banking services to its customers through its branches, ATMs, telebanking, and internet banking systems. The company provides retail banking services to individuals and commercial banking services to small and medium-sized corporations, partnerships, and sole proprietorships, as well as nonprofit organizations, local municipalities, …
Union Bankshares Inc. matters in the Banking sector as a dedicated community bank that delivers essential retail and commercial banking services, supporting local economies through its extensive network of branches, ATMs, and digital platforms. Its notable revenue growth of 33.8% highlights its ability to adapt and expand amid competitive pressures, making it a key contributor to regional financial stability.
Union Bankshares exhibits strong profitability with a 21.6% profit margin, indicating efficient cost management and revenue conversion, while its 15.1% ROE reflects effective use of shareholder equity. The 33.8% revenue growth further bolsters its financial health, positioning the company for sustained performance in the banking sector despite a modest P/E ratio of 9.6 suggesting potential undervaluation.
With a P/E ratio of 9.6, Union Bankshares is undervalued relative to peers, offering investors an opportunity for significant capital appreciation by 2026 as the banking sector recovers. The company's 33.8% revenue growth demonstrates robust expansion in retail and commercial services, likely driven by digital adoption and market demand. Additionally, a Tradestie Score of 64.8 indicates moderate upside potential, making it an attractive buy for those seeking balanced growth in community banking.
MYFW
First Western Financial Inc is a financial holding company that provides a fully integrated suite of wealth management services on its private trust bank platform, which includes a comprehensive selection of deposit, loan, trust, wealth planning, and investment management products and services. The company has two operating segments; The Wealth Management segment consists of operations relative to the Company's fully …
First Western Financial Inc. matters in the Banking sector as a specialized provider of integrated wealth management services, including deposits, loans, trust, and investment products, catering to high-net-worth clients and differentiating itself in a competitive landscape. Its comprehensive platform enhances client retention and positions it as a key player in personalized banking solutions amid growing demand for holistic financial services.
First Western's profit margin of 13.2% indicates strong operational efficiency in generating earnings from revenue, while its ROE of 5.0% suggests moderate returns on shareholder equity, potentially limited by capital structure or market conditions. The 9.1% revenue growth reflects healthy expansion, balanced by a P/E ratio of 20.0 that aligns with sector peers, signaling stable financial health.
First Western's 9.1% revenue growth highlights its potential for sustained expansion in the wealth management sector, driven by increasing demand for integrated services, making it a compelling buy by 2026. The P/E ratio of 20.0 offers reasonable valuation compared to industry averages, providing upside as economic recovery boosts banking activities. Additionally, a Tradestie Score of 64.5 indicates moderate financial strength, supporting long-term gains as the company capitalizes on its niche expertise.
NTRSO
Northern Trust is a leading provider of wealth management, asset servicing, asset management, and banking to corporations, institutions, affluent families, and individuals. Founded in Chicago in 1889, Northern Trust has offices in 20 states and Washington, D.C. as well as 23 locations in Canada, Europe, the Middle East, and Asia-Pacific. As of December 2024, Northern Trust had assets under custody …
Northern Trust matters in the banking sector as a century-old leader in wealth management, asset servicing, and asset management, serving corporations, institutions, and affluent clients with specialized expertise that differentiates it from larger retail-focused banks. Its global presence, with offices in 20 U.S. states and over 20 international locations, positions it to capitalize on cross-border wealth flows and institutional demands.
Despite limited financial data, Northern Trust's Tradestie Score of 64.2/100 indicates moderate financial health and profitability, suggesting stable earnings from its fee-based services in wealth and asset management amid sector challenges. This score reflects a balanced risk profile, with the company's long-term focus on high-margin institutional clients supporting sustained revenue streams.
By 2026, Northern Trust's NTRSO preferred stock could appeal to investors due to expected growth in global wealth management assets, potentially driving higher dividend payouts from the company's Series E preferred shares. The stock's fixed dividend structure offers a reliable income stream in a low-interest-rate environment, while Northern Trust's resilient business model and historical stability position it for gains as economic recovery boosts institutional demand. Additionally, with a Tradestie Score of 64.2/100 signaling moderate upside, NTRSO provides a defensive option for portfolios seeking both yield and sector exposure in the evolving banking landscape.
BK
Bank of New York Mellon is a global investment company involved in managing and servicing financial assets throughout the investment lifecycle. The bank provides financial services for institutions, corporations, and individual investors and delivers investment management and investment services in 35 countries and more than 100 markets. BNY is the largest global custody bank in the world, with $52.1 trillion …
Bank of New York Mellon matters in the banking sector as a leading global custodian and asset servicing provider, managing financial assets for institutions, corporations, and individuals throughout the investment lifecycle, which supports the efficient flow of global capital.
BK's profitability is robust, evidenced by a 26.6% profit margin and a 12.2% ROE, indicating efficient operations and strong returns on shareholder equity; additionally, its 10.0% revenue growth reflects solid financial health and potential for sustained performance in the sector.
BK's 10.0% revenue growth and 16.9 P/E ratio suggest it is undervalued compared to peers, offering attractive entry points for investors anticipating market recovery by 2026; the company's 26.6% profit margin highlights its operational efficiency and resilience amid rising demand for asset management services; furthermore, as global investment activities expand, BK's expertise in servicing financial assets positions it for potential earnings upside in 2026.
Methodology
Stocks are ranked using the Tradestie Score, a proprietary 0-100 rating that combines fundamental quality (profitability, balance sheet strength), growth metrics (revenue and earnings growth), valuation (P/E, PEG ratio), and momentum factors. Scores are updated daily based on the latest market data. Learn more about our methodology.