Banks use their capital and expertise to help businesses grow while offering consumers essential financial products like mortgages and credit cards. But worries about an economic slowdown and potential credit deterioration have kept sentiment in check, and over the past six months, the banking industry’s 7.5% return has trailed the S&P 500 by 10.9 percentage points.

The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. With that said, here is one bank stock boasting a durable advantage and two best left ignored.

Two Bank Stocks to Sell:

CVB Financial (CVBF)

Market Cap: $2.58 billion

With roots dating back to 1974 and a focus on serving small and medium-sized businesses, CVB Financial (NASDAQ: CVBF) operates Citizens Business Bank, providing banking, lending, and trust services to businesses and individuals across California.

Why Does CVBF Give Us Pause?

1. Annual net interest income growth of 1.4% over the last five years was below our standards for the banking sector
2. Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 9% annually, worse than its revenue
3. Annual tangible book value per share growth of 2.8% over the last five years was below our standards for the banking sector

CVB Financial is trading at $18.69 per share, or 1.1x forward P/B. If you’re considering CVBF for your portfolio, see our FREE research report to learn more.

WaFd Bank (WAFD)

Market Cap: $2.36 billion

Founded in 1917 and rebranded from Washington Federal in 2023, WaFd (NASDAQ: WAFD) is a bank holding company that provides lending, deposit services, and insurance through its Washington Federal Bank subsidiary across eight western states.

Why Are We Cautious About WAFD?

1. 7% annual net interest income growth over the last five years was slower than its banking peers
2. 102.2 basis point (100 basis points = 1 percentage point) decline in its net interest margin over the last two years reflects the firm’s willingness to accept lower profitability to defend its market position
3. Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable

WaFd Bank’s stock price of $29.93 implies a valuation ratio of 0.9x forward P/B. Read our free research report to see why you should think twice about including WAFD in your portfolio.

One Bank Stock to Buy:

Live Oak Bancshares (LOB)

Market Cap: $1.61 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 Should You Buy LOB?

1. Annual net interest income growth of 20.9% over the past five years was outstanding, reflecting market share gains this cycle
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 72.4% over the last five years outstripped its revenue performance
3. Balance sheet strength has increased this cycle as its 11.4% annual tangible book value per share growth over the last five years was exceptional

At $35.11 per share, Live Oak Bancshares trades at 1.4x forward P/B. Is now the right time to buy? See for yourself 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 9 Market-Beating Stocks. 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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