piggy bank and bills all over

If you are hunting for a solid investment at the close of 2018, the financial sector is an alluring option. Whether you are interested in purchasing individual shares or investing through a mutual fund, a diversified investment portfolio must include exposure to the performance of financial institutions. In the remainder of 2018 and all of 2019, a number of regional banks with national investment operations are projected to become some of the most lucrative bank stocks in the country. Other, more established banks, present a safe opportunity to build wealth based on new expansion or idiosyncratic circumstances. Either way, there is money to be made on the market in the coming months.

Product FAQ

1. What Are the Most Common Features of the Top Bank Stocks of 2018?

2. What Does the Future Hold for 2018's Top Bank Stocks?

3. How Do Bank Stocks Increase in Value?

4. How Do I Buy Shares of the Top Bank Stocks?

How We Reviewed

We reviewed the top bank stocks by surveying coverage from a variety of news outlets that cover the financial sector, information available through regulatory agencies, and forecasts from market indexes. We reviewed the income streams of each bank, the potential for increased market share, the dividends offered by each company, year-to-date performance, and present share price.

pile of money

Overall Price Range of This Product (and Similar Products)

The price of ascendant bank stocks in 2018 were concentrated in the $20-$40 range with the larger companies on our list share prices' eclipsing the $40 ceiling by large margins. Share price can be misleading as the amount of investment capital has a substantially greater impact on the yield of an investment than the raw number of shares any given stakeholder owns.

What We Reviewed

  • SVB Financial SIVB 
  • Popular Inc. BPOP
  • TCF Financial TCF
  • Commerce Bancshares CBSH
  • First Financial Bancorp FFBC
  • M&T Bank Corporation MTB
  • Customers Bancorp Inc. CUBI
  • Metropolitan Bank Holding Corp. MCB
  • Triumph Bancorp TBK
  • JP Morgan Chase & Co. JPM

SVB Financial (SIVB)

SVB Financial (SIVB)

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 Information

SVB Financial is the Santa Clara, CA based holding company for Silicon Valley Bank, a venture capital and investment firm with roots in the tech sector and the potential for global growth. The firm loans start-up capital and provides financial services to businesses working in Silicon Valley. More recently, the firm has invested in private equities and other venture capital funds in the United States and around the world.

In addition to the SVB Financial headquarters in California, the company has opened offices in Israel, India, Germany, England, and China.

Market Capitalization  

After a nearly decade-long uptrend, SVB Financial's share price has taken a hit in 2018. The current share price of about $$$ is projected to grow to between $$$ and $$$ within the next 12 months. 

Dividend Yield

SVB Financial does not currently pay dividends to shareholders.

YTD Stock Performance

At the moment, SVB Financial is down 3.28% for the year.

Popular Inc. (BPOP)

Popular Inc. (BPOP)

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 Information

Popular is a Puerto Rican financial services conglomerate, with locations across the mainland United States and the Virgin Islands. From their headquarters in San Juan, Popular has expanded into untapped Caribbean and Central American markets, a move that has lead to steady growth for the firm over the last five years. With a windfall of recovery capital after Hurricane Maria, Popular is projected to mature into one the best bank stocks on the market.

Market Capitalization  

Popular's current share price of roughly $$ is expected to increase by about 14% by the end of 2019.

Dividend Yield

The annual dividend yield for shareholders is 1.97%.

YTD Stock Performance

Shares of Popular are down slightly less than 1% thus far in 2018

TCF Financial (TCF)

TCF Financial (TCF)

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 Information

TCF Financial Corporation is a diversified financial services holding company based in Wayzata, MN. The company's retail and commercial banking locations are concentrated in the Midwest and the Mountain States. The company's subsidiaries operate a variety of leasing and financing businesses around the country and in Canada.

Market Capitalization  

TCF Financial's share price is around $ at the moment. The median projection has the price moving up about 27% to $ or so in the next year.

Dividend Yield

The 2018 dividend yield will be 2.5% for TCF shareholders which brings the five year average up to 1.6%.

YTD Stock Performance

TCF Financial's stock price has increased by slightly less than 2% so far in 2018.

Commerce Bancshares (CBSH)

Commerce Bancshares (CBSH)

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 Information

Commerce Bancshares is a bank holding company headquartered in Kansas City, MO. The firm is the parent company of Commerce Bank which has more than 200 retail and commercial locations in Missouri, Kansas, Illinois, Oklahoma, and Colorado. The consistently well-reviewed bank is working to expand into the burgeoning Denver metropolitan area which should sustain short- and intermediate-term growth.

Commerce Bancshares subsidiaries provide mortgage, leasing, and credit services around the country in addition to holding venture capital and real estate investments.

Market Capitalization  

In recent months, Commerce Bancshares stock price has slumped to $. The median of 12-month projections predict an increase of 8%.

Dividend Yield

2018 dividends will come in at 1.48% giving Commerce Bancshares investors a five year dividend yield of 1.76%.

YTD Stock Performance

Commerce Bancshares stock price has increased 0.3% so far this year.

 First Financial Bancorp (FFBC) 

 First Financial Bancorp (FFBC)

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 Information

First Financial Bancorp is a mid-size bank holding company based in Ohio. The company is the sole owner of First Financial Bank which offers banking and financial services to retail and commercial customers across Ohio, Kentucky, and Indiana in a mixture of urban, suburban, and rural areas where their community banking model resonates.

The company's commercial and industrial loan holdings are sufficient to make net interest income their strongest revenue stream in recent years and keep their shares competitive among bank stocks.

Market Capitalization  

The current market price of $ is expected to reach $ in the next 12 months, an increase of roughly 30%.

Dividend Yield

The 2018 dividend yield of 2.92% is just below the 3.07% five year average.

YTD Stock Performance

First Financial Bancorp's share price has increased by slightly less than 1% in 2018.

M&T Bank Corporation (MTB)

M&T Bank Corporation (MTB)

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 Information

M&T Bank Corporation is yet another bank holding company based in Buffalo, NY. The firm operates nearly 800 retail and commercial banking locations throughout the Mid-Atlantic States. The Fortune 500 company has reported profits every quarter since Jimmy Carter was elected, solidifying the company's place among the best bank stocks on the market.

In addition to conventional retail and commercial banking products, M&T Bank owns Wilmington Trust which offers an array of financial and corporate services to customers around the country and around the world.

Market Capitalization  

The current share price of about $$ is projected to have a value between $$$ and $$$ a year from now. The median projection is $$$ for the same time frame.

Dividend Yield

The 2018 dividend yield of 2.04% is roughly in line with the 2.13% five year average.

YTD Stock Performance

So far in 2018. M&T Bank's share price has decreased by 0.12%.

Customers Bancorp Inc. (CUBI)

Customers Bancorp Inc. (CUBI)

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 Information

Customers Bancorp is a bank holding company headquartered in the Philadelphia suburbs with 14 branches in metropolitan Philadelphia, Hamilton, NJ, and Rye, NY. The company provides financial services to small- and medium-sized businesses in the Mid-Atlantic States and Southern New England. Customers Bancorp also loans capital to mortgage banks, lending a degree of liquidity to a notoriously illiquid segment of the financial sector.

Market Capitalization  

Customers Bancorp's current share price of $ is projected to fall anywhere between $$ and $in October of 2019 with the median projection coming in at $, a projected increase of 31%.

Dividend Yield

Customers Bancorp does not offer its shareholders dividends.

YTD Stock Performance

So far in 2018, Customers Bancorp's share price has decreased by 1.12%.

 Metropolitan Bank Holding Corp. (MCB)

 Metropolitan Bank Holding Corp. (MCB)

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 Information

Metropolitan Bank Holding Corporation is the holding company for the young Metropolitan Commercial Bank on iconic Park Avenue in New York. The company offers banking products for businesses and individuals in Metropolitan New York. Besides traditional banking products, Metropolitan Commercial Bank provides myriad lending products. If the projections are even close to correct, this company will carve out a solid market share and become one of the more attractive bank stocks in coming years.

Market Capitalization  

Metropolitan Commercial Bank's present share price of $ is expected to balloon by 50% to $$ by this time next year.

Dividend Yield

As a recently founded company, Metropolitan Commercial Bank is unable to offer dividends to shareholders.

YTD Stock Performance

Thus far in 2018, Metropolitan Commercial Bank's share price has decreased by just over 15%.

Triumph Bancorp (TBK) 

Triumph Bancorp (TBK)

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 Information

Triumph Bancorp is a Dallas-based financial holding company that offers traditional banking products and various asset management services at their locations in New Mexico, Colorado, Kansas, and Illinois. The company owns subsidiaries that lend to commercial businesses, real estate developments, and agricultural enterprises.

Triumph's stock price has been on an uptrend since 2014 and seems poised to continue growing. The company appears poised to establish itself as a premiere option among American bank stocks.

Market Capitalization  

Over the last four years, Triumph's share price has climbed to $$ and is expected to reach $$, an increase of 29%, by late 2019.

Dividend Yield

Triumph is, as of yet, unable to offer dividends to its share holders.

YTD Stock Performance

Triumph Bancorp's stock price is up 13% on the year.

JP Morgan Chase & Co. (JPM)

JP Morgan Chase & Co. (JPM)

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 Information

JP Morgan Chase & Co. is one of the most well-established, sprawling financial institutions in the country. With a massive market share, JP Morgan Chase has been and will continue to be one the most competitive bank stocks available on the NYSE. The company offers a comprehensive set of consumer banking products in locations all over the country in addition to myriad investment banking, commercial banking, and wealth management products. JP Morgan Chase's highly diversified income streams subject the company to regulatory scrutiny in countries around the world.

Market Capitalization  

Like other large companies, JP Morgan Chase's large market share precludes substantial growth. Projections range from an increase of 31% to a decrease of 19%. The moderated median being an increase of 19%, sizable for a large company.

Dividend Yield

The 2018 dividend yield for JP Morgan Chase's shares is 2.37% which is consistent with the 2.4% five year average.

YTD Stock Performance

Shares of JP Morgan Chase are down 1.36% in 2018.

The Verdict

pile of euro notes

The most important factors in determining which bank stocks are best for your portfolio are your age and your investment goals, which are closely intertwined. If you are an older investor interested in a stable investment that can provide dividend income in retirement, the larger banks on our list present the most viable opportunities. On the other hand, if you are a younger investor with enough time to take some risks, the smaller regional banks on our list with strong growth potential present chances to bolster the value of your investment capital and open up doors down the line. In either situation, it is important to account for risk and develop a strategy before purchasing shares or investment products.

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