Banks serve as the backbone of the economy, facilitating lending, deposits, and financial services that keep businesses and consumers moving forward. But worries about an economic slowdown and potential credit deterioration have kept sentiment in check, and over the past six months, the banking industry has tumbled by 1.7%. This performance was disappointing since the S&P 500 climbed 4.5%.

Only some companies are subject to these dynamics, however, and a handful of high-quality businesses can deliver earnings growth in any environment. Keeping that in mind, here is one bank stock poised to generate sustainable market-beating returns and two we’re swiping left on.

Two BankStocks to Sell:

S&T Bancorp (STBA)

Market Cap: $1.46 billion

Tracing its roots back to 1902 in western Pennsylvania's industrial heartland, S&T Bancorp (NASDAQ: STBA) is a Pennsylvania-based bank holding company that provides retail and commercial banking services, cash management, trust services, and investment advisory solutions.

Why Is STBA Not Exciting?

1. Muted 4.6% annual net interest income growth over the last four years shows its demand lagged behind its bank peers
2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3.5%
3. Low interest coverage ratio indicates the company may struggle to service its debt obligations if operational performance deteriorates

S&T Bancorp is trading at $38.01 per share, or 1x forward P/B. If you’re considering STBA for your portfolio, see our FREE research report to learn more.

Origin Bancorp (OBK)

Market Cap: $1.11 billion

Founded in 1912 during the early boom days of Louisiana banking, Origin Bancorp (NYSE: OBK) is a financial holding company that provides personalized banking services to businesses, municipalities, and individuals across Texas, Louisiana, and Mississippi.

Why Are We Cautious About OBK?

1. Muted 1.3% annual revenue growth over the last two years shows its demand lagged behind its bank peers
2. Net interest margin shrank by 18.7 basis points (100 basis points = 1 percentage point) over the last two years, suggesting the yields on its loan book are decreasing or the market is becoming more competitive

Origin Bancorp’s stock price of $35.76 implies a valuation ratio of 0.9x forward P/B. To fully understand why you should be careful with OBK, check out our full research report (it’s free).

One Bank Stock to Buy:

Live Oak Bancshares (LOB)

Market Cap: $1.37 billion

Founded during the 2008 financial crisis with a vision to reimagine small business banking through technology, Live Oak Bancshares (NYSE: LOB) is a bank holding company that specializes in providing online banking services and SBA-guaranteed loans to small businesses across targeted industries nationwide.

Why Will LOB Outperform?

1. Impressive 14.5% annual net interest income growth over the last four years indicates it’s winning market share this cycle
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 45% over the last five years outstripped its revenue performance
3. Balance sheet strength has increased this cycle as its 11.3% annual tangible book value per share growth over the last five years was exceptional

At $30.04 per share, Live Oak Bancshares trades at 1.2x forward P/B. Is now the right time to buy? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. 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-small-cap company Exlservice (+354% 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