Banks serve as the backbone of the economy, facilitating lending, deposits, and financial services that keep businesses and consumers moving forward. But concerns about loan losses and tightening regulations have tempered enthusiasm, and over the past six months, the banking industry has pulled back by 10.1%. This drawdown was disappointing since the S&P 500 held its ground.

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 are two resilient bank stocks at the top of our wish list and one that may face trouble.

One BankStock to Sell:

Old National Bank (ONB)

Market Cap: $7.83 billion

Tracing its roots back to 1834 when Andrew Jackson was president, Old National Bancorp (NASDAQ: ONB) is a bank holding company that provides commercial and consumer loans, deposit services, wealth management, and treasury solutions primarily throughout the Midwest region.

Why Does ONB Worry Us?

1. Annual revenue growth of 1.1% over the last two years was below our standards for the bank sector
2. Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 27 basis points (100 basis points = 1 percentage point)
3. High debt servicing costs relative to its earnings leave little margin for error in meeting its financial obligations

Old National Bank is trading at $21.18 per share, or 1x forward P/B. Check out our free in-depth research report to learn more about why ONB doesn’t pass our bar.

Two Bank Stocks to Watch:

WSFS Financial (WSFS)

Market Cap: $3.02 billion

Founded in 1832 as Wilmington Savings Fund Society and one of the oldest banks in America still operating under its original name, WSFS Financial (NASDAQ: WSFS) operates a community banking and wealth management franchise primarily serving customers in the Mid-Atlantic region through its main subsidiary, WSFS Bank.

Why Could WSFS Be a Winner?

1. 11% annual net interest income growth over the last four years surpassed the sector average as its products resonated with borrowers
2. Impressive 17.5% annual tangible book value per share growth over the last two years indicates it’s building equity value this cycle
3. Projected tangible book value per share growth of 12.8% for the next 12 months suggests its capital momentum from the last two years will persist

At $53.22 per share, WSFS Financial trades at 1.1x forward P/B. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

Commerce Bancshares (CBSH)

Market Cap: $8.30 billion

Founded in 1865 during the post-Civil War economic boom, Commerce Bancshares (NASDAQGS:CBSH) is a Midwest-focused bank holding company that provides retail, commercial, and wealth management services to individuals and businesses.

Why Is CBSH on Our Radar?

1. Net interest margin grew by 51.7 basis points (100 basis points = 1 percentage point) over the last two years, giving the company more chips to play with
2. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. ROE punches in at 16.4%, illustrating management’s expertise in identifying profitable investments

Commerce Bancshares’s stock price of $62.21 implies a valuation ratio of 2.2x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

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-micro-cap company Tecnoglass (+1,754% 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.