2 Bank Stocks with Solid Fundamentals and 1 Facing Headwinds

Banks play a critical role in the financial system, providing everything from commercial loans to wealth management and payment processing services. These institutions have benefited from improved net interest margins and robust credit growth, so it’s no surprise the banking industry has posted a 13.3% gain over the past six months, nearly mirroring the S&P 500.

Although banks have produced good results, only a handful will thrive over the long term as fintech disruptors are rapidly taking market share from traditional institutions. On that note, here are two resilient bank stocks at the top of our wish list and one that may face trouble.

One Bank Stock to Sell:

Fulton Financial (FULT)

Market Cap: $3.58 billion

Tracing its roots back to 1882 in the heart of Pennsylvania, Fulton Financial (NASDAQ:FULT) is a financial holding company that provides banking, lending, and wealth management services to consumers and businesses across five Mid-Atlantic states.

Why Does FULT Fall Short?

1. Muted 8.5% annual revenue growth over the last five years shows its demand lagged behind its banking peers
2. Overall productivity is expected to decrease over the next year as Wall Street thinks its efficiency ratio will degrade by 3.1 percentage points
3. Estimated tangible book value per share growth of 9.1% for the next 12 months implies profitability will slow from its two-year trend

At $19.85 per share, Fulton Financial trades at 1x forward P/B. If you’re considering FULT for your portfolio, see our FREE research report to learn more.

Two Bank Stocks to Watch:

Old National Bank (ONB)

Market Cap: $9.09 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 Are We Fans of ONB?

1. Annual net interest income growth of 26.2% over the past five years was outstanding, reflecting market share gains this cycle
2. Net interest income outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
3. Anticipated efficiency ratio improvement of -9.5 percentage points over the next year signals it will gain leverage on its fixed costs and become more productive

Old National Bank’s stock price of $23.27 implies a valuation ratio of 1.1x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

Amalgamated Financial (AMAL)

Market Cap: $960.4 million

Founded in 1923 by labor unions seeking a financial institution aligned with worker values, Amalgamated Financial (NASDAQGM:AMAL) operates a values-oriented bank that provides commercial banking, trust services, and investment management to socially responsible organizations and individuals.

Why Could AMAL Be a Winner?

1. Net interest margin jumped by 16.3 basis points (100 basis points = 1 percentage point) over the last two years, giving the firm more resources to pursue growth initiatives
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 18% exceeded its revenue gains over the last five years
3. Impressive 20.5% annual tangible book value per share growth over the last two years indicates it’s building equity value this cycle

Amalgamated Financial is trading at $32.07 per share, or 1.2x forward P/B. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .

Stocks We Like Even More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

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