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 1.4%. This drawdown was disheartening since the S&P 500 gained 5.7%.

The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. On that note, here are two bank stocks boasting durable advantages and one that may face trouble.

One Bank Stock to Sell:

Enterprise Financial Services (EFSC)

Market Cap: $2.13 billion

Starting as a single bank in Missouri in 1988 and expanding through strategic growth, Enterprise Financial Services (NASDAQ: EFSC) is a financial holding company that offers banking, lending, and wealth management services to businesses and individuals across seven states.

Why Does EFSC Worry Us?

1. Estimated net interest income growth of 4.2% for the next 12 months implies demand will slow from its five-year trend
2. Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 25.7 basis points (100 basis points = 1 percentage point)
3. Projected 1.1 percentage point efficiency ratio increase over the next year signals its day-to-day expenses will rise

Enterprise Financial Services’s stock price of $57.71 implies a valuation ratio of 1.1x forward P/B. Dive into our free research report to see why there are better opportunities than EFSC.

Two Bank Stocks to Watch:

Trustmark (TRMK)

Market Cap: $2.37 billion

Tracing its roots back to 1889 in Mississippi, Trustmark (NASDAQ: TRMK) is a financial services organization providing banking, wealth management, insurance, and mortgage services across five southeastern states.

Why Does TRMK Stand Out?

1. Decent 8.4% annual net interest income growth over the last five years beat most of its peers, showing borrowers find value in its loans
2. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 10.2% annually, topping its revenue gains
3. Impressive 21.8% annual tangible book value per share growth over the last two years indicates it’s building equity value this cycle

At $39.29 per share, Trustmark trades at 1.1x forward P/B. Is now the right time to buy? See for yourself in our full research report, it’s free.

ServisFirst Bancshares (SFBS)

Market Cap: $4.58 billion

Founded in 2005 with a focus on serving underserved mid-sized businesses, ServisFirst Bancshares (NYSE: SFBS) is a bank holding company that provides commercial banking services to businesses and professionals through its subsidiary ServisFirst Bank.

Why Should You Buy SFBS?

1. Solid 9.7% annual net interest income growth over the last five years indicates its offerings are gaining share
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 10.6% over the last five years outstripped its revenue performance
3. Impressive 13.4% annual tangible book value per share growth over the last five years indicates it’s building equity value this cycle

ServisFirst Bancshares is trading at $83.83 per share, or 2.5x 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

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 6 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.