5 Best Performing Bank Stocks in 2022

In this article, we discuss 5 best performing bank stocks in 2022. If you want to see more stocks in this selection, check out 12 Best Performing Bank Stocks in 2022. 

5. Amalgamated Financial Corp. (NASDAQ:AMAL)

Number of Hedge Fund Holders: 10

YTD Share Price Gain as of December 28: 38.89%

Amalgamated Financial Corp. (NASDAQ:AMAL) is a New York-based bank holding company for Amalgamated Bank that provides commercial and retail banking, investment management, and trust and custody services for commercial and retail customers in the United States. On October 27, Amalgamated Financial Corp. (NASDAQ:AMAL) reported Q3 GAAP earnings per share of $0.74 and a revenue of $72.63 million, outperforming Wall Street estimates by $0.05 and $5.48 million, respectively. Revenue over the period jumped 45% on a year-over-year basis. It is one of the best performing bank stocks in 2022. 

On December 20, Piper Sandler analyst Alexander Twerdahl maintained an Overweight rating on Amalgamated Financial Corp. (NASDAQ:AMAL) but lowered the firm’s price target on the shares to $28 from $29 after the company released an updated investor presentation disclosing an early look at trends so far in Q4 2022.

According to Insider Monkey’s data, 10 hedge funds were long Amalgamated Financial Corp. (NASDAQ:AMAL) at the end of September 2022, compared to 9 funds in the last quarter. Phill Gross and Robert Atchinson’s Adage Capital Management is the biggest stakeholder of the company, with 1.6 million shares worth $36.5 million. 

4. Heritage Financial Corporation (NASDAQ:HFWA)

Number of Hedge Fund Holders: 12

YTD Share Price Gain as of December 28: 26.27%

Heritage Financial Corporation (NASDAQ:HFWA) is a Washington-based bank holding company for Heritage Bank that provides various financial services to small and medium-sized businesses and individuals in the United States. On October 20, Heritage Financial Corporation (NASDAQ:HFWA) reported Q3 GAAP earnings per share of $0.59 and a revenue of $66.74 million, outperforming Wall Street estimates by $0.08 and $4.93 million, respectively. Heritage Financial Corporation (NASDAQ:HFWA) is one of the best performing bank stock stocks in 2022. 

On June 29, DA Davidson analyst Jeffrey Rulis upgraded Heritage Financial Corporation (NASDAQ:HFWA) to Buy from Neutral with a price target of $29, up from $27. He raised his 2022, 2023, and 2024 EPS estimates, calling Heritage Financial Corporation (NASDAQ:HFWA) “a robust rate play with accelerating loan growth and a history of above peer credit performance.” In addition to rate bump catalysts, he cited in-market M&A opportunities, efficiency gains, and scarcity value adding to Heritage Financial Corporation (NASDAQ:HFWA)’s “compelling investment opportunity.”

According to Insider Monkey’s data, Heritage Financial Corporation (NASDAQ:HFWA) was part of 12 hedge fund portfolios at the end of Q3 2022, compared to 13 in the prior quarter. Mark Lee’s Forest Hill Capital is the biggest position holder in the company, with 273,090 shares worth $7.2 million. 

3. Professional Holding Corp. (NASDAQ:PFHD)

Number of Hedge Fund Holders: 13

YTD Share Price Gain as of December 28: 45.57%

Professional Holding Corp. (NASDAQ:PFHD) is a Florida-based company that operates primarily through its subsidiary, Professional Bank, and provides banking products and services to small and medium sized businesses, professionals, and entrepreneurs. On October 28, Professional Holding Corp. (NASDAQ:PFHD) reported a Q3 GAAP EPS of $0.63 and a revenue of $26.02 million, topping analysts’ estimates by $0.06 and $1.3 million, respectively. Revenue over the period gained 26.4% on a year-over-year basis. It is one of the best performing bank stocks in 2022. 

On August 11, Keefe Bruyette analyst Brady Gailey downgraded Professional Holding Corp. (NASDAQ:PFHD) to Market Perform from Outperform with a price target of $35.50, up from $27.

According to Insider Monkey’s data, 13 hedge funds were long Professional Holding Corp. (NASDAQ:PFHD) at the end of September 2022, compared to 6 funds in the last quarter. Alec Litowitz and Ross Laser’s Magnetar Capital is the biggest stakeholder of the company, with 457,045 shares worth $11.85 million. 

2. CVB Financial Corp. (NASDAQ:CVBF)

Number of Hedge Fund Holders: 16

YTD Share Price Gain as of December 28: 21.46%

CVB Financial Corp. (NASDAQ:CVBF) is a California-based bank holding company for Citizens Business Bank, a state-chartered bank that provides banking and financial services to small to mid-sized businesses and individuals. On December 14,CVB Financial Corp. (NASDAQ:CVBF) declared a quarterly dividend per share of $0.20, in line with previous. The dividend is payable on January 13, 2023 to shareholders of record on December 29. The dividend yield on December 28 came in at 3.08%. CVB Financial Corp. (NASDAQ:CVBF) is one of the best performing bank stocks in 2022. 

On October 21, Keefe Bruyette analyst Kelly Motta downgraded CVB Financial Corp. (NASDAQ:CVBF) to Market Perform from Outperform with an unchanged price target of $32. The analyst cited valuation for the downgrade following the run in the stock year-to-date. 

According to Insider Monkey’s Q3 data, 16 hedge funds were long CVB Financial Corp. (NASDAQ:CVBF), compared to 10 funds in the last quarter. Ryan Tolkin’s Schonfeld Strategic Advisors is the biggest stakeholder of the company, with 1.24 million shares worth $31.40 million.  

1. First Horizon Corporation (NYSE:FHN)

Number of Hedge Fund Holders: 49

YTD Share Price Gain as of December 28: 46.24%

First Horizon Corporation (NYSE:FHN) is one of the best performing stocks this year in the banking sector, with shares gaining over 46% year-to-date as of December 28. First Horizon Corporation (NYSE:FHN) is a Tennessee-based bank holding company for First Horizon Bank that operates through three segments – Regional Banking, Specialty Banking, and Corporate. 

On October 25, First Horizon Corporation (NYSE:FHN) declared a quarterly dividend of $0.15 per share, in line with previous. The dividend is payable on January 3, 2023 to shareholders of record on December 16. First Horizon Corporation (NYSE:FHN)’s dividend yield on December 28 came in at 2.45%. 

According to Insider Monkey’s third quarter database, First Horizon Corporation (NYSE:FHN) was part of 49 hedge fund portfolios, compared to 43 in the prior quarter. Simon Sadler’s Segantii Capital is the largest stakeholder of the company, with 8.3 million shares worth $191.85 million. 

Here is what Ave Maria specifically said about First Horizon Corporation (NYSE:FHN) in its Q2 2022 investor letter:

“First Horizon Corporation (NYSE:FHN) is a leading regional bank that merged with IBERIABANK Corporation in 2020 forming a regional financial services company with 412 branches across 12 southern states. On February 28, 2022, The Toronto-Dominion Bank (TD Bank) reached an agreement with First Horizon Corporation to acquire the bank for $25 per share.”

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