In this article, we discuss the 10 Best Bank Penny Stocks to Buy Right Now.
According to Reuters, the Federal Reserve looks to be ready to cut interest rates by at least 25 basis points for the first time in 2025. Following three rate cuts in late 2024, the rates have been held at 4.25%-4.50% by the Fed, with traders now expecting two more reductions by the end of 2025, LSEG data shows.
U.S. equities have rallied to record highs, thanks to softer labor-market figures and easing inflation. Bank shares are among the top performers, while small-cap companies, which rely heavily on external borrowing, have already rallied more than 5% since Jerome Powell’s Jackson Hole remarks. The KBW Regional Banking Index (KRX) has returned 10.77% over the past year.
As small-cap banks and penny stocks rely heavily on external funding, lower rates act as a key tailwind for them. Due to cheaper borrowing and refinancing, capital frees up for growth, as reflected in the Russell 2000’s more than 5% rise since Powell’s Jackson Hole remarks.
However, the outlook for the banking sector remains mixed. Funding costs can go up and margins can flatten, as competition for deposits rises. Furthermore, a flatter yield curve narrows profit per loan. Yet the S&P 500 Banks Index has returned 23.15% on a year-to-date basis.
With this backdrop, let’s move to our list of the 10 Best Bank Penny Stocks to Buy Right Now.
Our Methodology
To curate our list of the 11 Best Bank Penny Stocks to Buy Right Now, we used the Finviz screener to extract a list of stocks in the banking sector that trade under a share price of $5. Next, we assessed the hedge fund sentiment surrounding these stocks using Insider Monkey’s hedge fund database, which tracks nearly 1,000 hedge funds. Finally, we present our list of the 11 Best Bank Penny Stocks to Buy Right Now in ascending order based on the number of hedge funds holding stakes in each stock, as of Q2 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. CNFinance Holdings Limited (NYSE:CNF)
Number of Hedge Fund Holders: 1
CNFinance Holdings Limited (NYSE:CNF) is one of the 10 Best Bank Penny Stocks to Buy Right Now.
On August 28, 2025, CNFinance Holdings Limited (NYSE:CNF) reported its results for the second quarter of 2025. The company ended the quarter with a total loan balance of roughly $1.55 billion, down nearly 30% YoY, and interest income of about $57 million, a 55% decline. Meanwhile, operating expenses experienced a sharp decline of 74%, while financing costs went down by 30%.
CNFinance Holdings Limited (NYSE:CNF) registered a net loss of roughly $5.6 million due to an impairment charge. Yet the company registered a 103% recovery rate on non-performing loans, reflecting its effective asset management. The company’s management commented that the short-term pressure on loan volumes and earnings is part of its deliberate plan to stabilize funding channels, contain bad loans, and build a more sustainable growth trajectory.
CNFinance Holdings Limited (NYSE:CNF) offers micro-credit loan services to small and micro-enterprise owners, while also providing loan facilitation, post-facilitation, and guarantee services for commercial banks and agency lending for financial institutions across China. It is one of the Best Penny Stocks.
9. SHF Holdings, Inc. (NASDAQ:SHFS)
Number of Hedge Fund Holders: 2
With significant hedge fund interest, SHF Holdings, Inc. (NASDAQ:SHFS) secures a spot on our list of the 10 Best Bank Penny Stocks to Buy Right Now.
On September 2, 2025, SHF Holdings, Inc. (NASDAQ:SHFS) launched its Fully Managed Cannabis Banking Program, the first fully outsourced operational and compliance platform for financial institutions serving the regulated cannabis market.
Ahead of the PBC Conference 2025, this launch allows community banks, credit unions, and other institutions to offer compliant cannabis banking without expanding internal teams or adding new risk. SHF Holdings, Inc. (NASDAQ:SHFS) will manage client acquisition, onboarding, BSA/AML compliance, and account support, while deposits will be held directly by the partner institution. This model protects partners from reputational exposure and operational overhead. This way, a more efficient path is created that serves cannabis businesses at scale.
SHF Holdings, Inc. (NASDAQ:SHFS), a fintech company, provides banking, credit, payments, and compliance solutions exclusively to the legal cannabis industry across the U.S. It is one of the Best Penny Stocks.
8. Carver Bancorp, Inc. (NASDAQ:CARV)
Number of Hedge Fund Holders: 2
Carver Bancorp, Inc. (NASDAQ:CARV) is one of the 10 Best Bank Penny Stocks to Buy Right Now.
Dream Chasers Capital Group (DCCG) is the largest shareholder of Carver Bancorp, Inc. (NASDAQ:CARV) with a 9.7% stake. On September 23, 2025, DCCG expressed interest in acquiring a controlling interest, pursuing a merger, or completing a full acquisition of Carver Bancorp.
Through a press release, DCCG said that it is seeking partners ranging from family offices to private equity and fintech firms to explore a potential takeover or controlling interest. DCCG believes that Carver Bancorp, Inc. (NASDAQ:CARV)’s board has failed to deliver on regulatory and performance promises made to the Office of the Comptroller of the Currency and to investors, hampering shareholder value over the past decade. As a result, the activist fund says that fresh capital and leadership are required to reposition the bank for growth in areas like digital payments and crypto-backed lending, leveraging its CDFI certification, long-standing community presence, and partnerships with major financial institutions.
Carver Bancorp, Inc. (NASDAQ:CARV) offers consumers and commercial banking services to individuals, businesses, nonprofits, and governmental agencies primarily in New York. It is one of the Best Penny Stocks.
7. OptimumBank Holdings Inc. (NYSE:OPHC)
Number of Hedge Fund Holders: 2
With significant hedge fund interest, OptimumBank Holdings Inc. (NYSE:OPHC) secures a spot on our list of the 10 Best Bank Penny Stocks to Buy Right Now.
On September 16, 2025, OptimumBank Holdings Inc. (NYSE:OPHC) announced that it has chosen IBN, a multifaceted financial news and publishing company, to lead its corporate communications strategy.
With IBN’s investor-focused distribution network of over 5,000 syndication outlets, newsletters, social media channels, and wire services, OptimumBank Holdings Inc. (NYSE:OPHC) looks to enhance market visibility and strengthen its brand presence among investors, journalists, and the public. The company believes the partnership will enhance shareholder value by amplifying awareness of the bank’s relationship-based model, which sets it apart from larger institutions charging higher fees and offering more impersonal service.
OptimumBank Holdings Inc. (NYSE:OPHC) provides consumer and commercial banking services to individuals and businesses. It is one of the Best Penny Stocks.
6. AmeriServ Financial, Inc. (NASDAQ:ASRV)
Number of Hedge Fund Holders: 3
AmeriServ Financial, Inc. (NASDAQ:ASRV) is one of the 10 Best Bank Penny Stocks to Buy Right Now.
On September 12, 2025, AmeriServ Financial, Inc. (NASDAQ:ASRV)’s President and CEO, Jeffrey A. Stopko, purchased shares of the company’s common stock in two transactions valued at $5,726. This transaction represents a total of 2,000 shares acquired on September 11-12, raising Stopko’s direct holdings to over 162,000 shares. Furthermore, additional shares are held jointly with his wife.
The purchases come shortly after AmeriServ Financial, Inc. (NASDAQ:ASRV)’s 2025 annual meeting, where shareholders elected three Class III directors to serve until 2028 and approved the company’s auditor.
AmeriServ Financial, Inc. (NASDAQ:ASRV) provides consumer, mortgage, and commercial financial products in the U.S. It is one of the Best Penny Stocks.
5. Blue Ridge Bankshares, Inc. (NYSE:BRBS)
Number of Hedge Fund Holders: 7
With significant hedge fund interest, Blue Ridge Bankshares, Inc. (NYSE:BRBS) secures a spot on our list of the 10 Best Bank Penny Stocks to Buy Right Now.
On August 25, 2025, Blue Ridge Bankshares, Inc. (NYSE:BRBS) announced that its Board authorized a share repurchase program of up to $15 million of its issued and outstanding common stock.
Blue Ridge Bankshares, Inc. (NYSE:BRBS)’s management stated that repurchases may be executed through open market purchases, block trades, or privately negotiated transactions, all in compliance with SEC Rule 10b-18.
According to Blue Ridge Bankshares, Inc. (NYSE:BRBS), any repurchased shares will be canceled and returned to authorized but unissued status under applicable law. The company emphasized flexibility to modify or suspend the program depending on price, business conditions, and market factors.
With its Commercial Banking and Mortgage Banking segments, Blue Ridge Bankshares, Inc. (NYSE:BRBS) offers commercial and consumer banking and related financial services. It is one of the Best Penny Stocks.
4. Banco Santander Brasil SA ADR (NYSE:BSBR)
Number of Hedge Fund Holders: 7
Banco Santander Brasil SA ADR (NYSE:BSBR) is one of the 10 Best Bank Penny Stocks to Buy Right Now.
On September 3, 2025, Brazilian banks, including Banco Santander Brasil SA ADR (NYSE:BSBR), came under regulatory scrutiny.
This occurred after reports that the U.S. Treasury Department approached the banks for details on measures taken under the Magnitsky Act following sanctions imposed on a top Brazilian judge. The inquiry, which was described by a source as generic and standard, was sent to Banco do Brasil, Bradesco, Itau, Banco Santander Brasil SA ADR (NYSE:BSBR), and BTG. The notice highlights Washington’s push to clarify compliance expectations with foreign financial institutions.
Banco Santander Brasil SA ADR (NYSE:BSBR) offers a wide range of banking products and services to individuals, SMEs, and corporate clients across Brazil and the rest of the globe. It is one of the Best Penny Stocks.
3. Riverview Bancorp, Inc. (NASDAQ:RVSB)
Number of Hedge Fund Holders: 9
With significant hedge fund interest, Riverview Bancorp, Inc. (NASDAQ:RVSB) secures a spot on our list of the 10 Best Bank Penny Stocks to Buy Right Now.
On September 16, 2025, Riverview Bancorp, Inc. (NASDAQ:RVSB)’s Executive Vice President and Chief Financial Officer, David Lam, purchased 1,000 shares of common stock at $4.93 each, totaling $4,930.
This transaction lifted Lam’s direct holdings to over 72,000 shares, alongside additional shares held through retirement and employee stock ownership plans. The purchase comes after Riverview Bancorp, Inc. (NASDAQ:RVSB)’s annual meeting, where shareholders voted on director elections and executive compensation matters.
Riverview Bancorp, Inc. (NASDAQ:RVSB) offers a range of deposit products, including demand, money market, savings, and retirement accounts across its regional footprint. It is one of the Best Penny Stocks.
2. Lloyds Banking Group plc (NYSE:LYG)
Number of Hedge Fund Holders: 19
Lloyds Banking Group plc (NYSE:LYG) is one of the 10 Best Bank Penny Stocks to Buy Right Now.
On September 18, 2025, Lloyds Banking Group plc (NYSE:LYG) expanded its multi-year partnership with Broadcom Inc. with the aim of accelerating the bank’s technology transformation initiatives.
With the expanded partnership, Lloyds Banking Group plc (NYSE:LYG) aims to deploy Broadcom’s VMware Cloud Foundation and mainframe solutions to enhance its infrastructure, consolidate data centers, and support traditional, modern, and AI-driven applications under unified operations and governance.
This rollout is expected to improve digital banking services for Lloyds Banking Group plc (NYSE:LYG)’s 28 million UK customers by providing faster, more reliable systems for payments, lending, and account management. Furthermore, Broadcom will deliver professional services and training to the bank’s engineering teams to support implementation, while its mainframe solutions continue to automate and integrate mission-critical workloads.
Lloyds Banking Group plc (NYSE:LYG), the U.K.’s largest retail and commercial bank, offers banking, insurance, pensions, and investment products. It is one of the Best Penny Stocks.
1. Banco Bradesco S.A. (NYSE:BBD)
Number of Hedge Fund Holders: 23
With significant hedge fund interest, Banco Bradesco S.A. (NYSE:BBD) secures a spot on our list of the 10 Best Bank Penny Stocks to Buy Right Now.
On September 24, 2025, Bloomberg reported that Cason SA’s controlling shareholder, Rubens Ometto, is under negotiations with Banco Bradesco S.A. (NYSE:BBD) for a loan of up to $141 million. The loan, which is arranged through the Ometto family office, Aguassanta Participacoes SA, may be backed by Cosan shares as collateral.
This development shortly follows Banco Bradesco S.A. (NYSE:BBD)’s September 18 interim interest payment of $564 million to shareholders. The payment reflects the bank’s strong liquidity and ability to return value.
Banco Bradesco S.A. (NYSE:BBD), one of Brazil’s largest financial institutions, provides a range of banking, insurance, and investment services to individuals and corporations domestically and abroad. It is one of the Best Penny Stocks.
READ NEXT: 11 Best Roth IRA Stocks to Invest in Now and 11 Best Coal Stocks to Buy According to Hedge Funds.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email below.
Hedge Fund Resource Center