Top small cap U.S. regional banks with high price-to-book multiples and strong momentum grades

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The financial sector entered 2026 with a notable disconnect between strong fundamentals and market performance. The State Street Financial Select Sector SPDR ETF (XLF [https://seekingalpha.com/symbol/XLF]) underperformed through January, ranking as one of only two sectors with negative returns despite robust 2025 results that saw all major financial ETFs post double-digit gains.

Below is a list of small-cap U.S. regional banks that carry strong momentum grades (A- to A+) and are ranked by their price-to-book (P/B) multiples. The screen focuses on regional banking institutions that combine favorable momentum signals with relatively elevated book value-based valuations.

The price-to-book (P/B) multiple is a valuation metric that compares a company’s stock price to its book value per share. It’s calculated by dividing a company’s market capitalization by its total book value, or alternatively, by dividing its stock price by its book value per share.

The list is topped by Five Star Bancorp (FSBC [https://seekingalpha.com/symbol/FSBC]), which has the highest price-to-book multiple among the screened regional banks while maintaining an A momentum grade. Northeast Bank (NBN [https://seekingalpha.com/symbol/NBN]) and Red River Bancshares (RRBI [https://seekingalpha.com/symbol/RRBI]) follow, with Isabella Bank (ISBA [https://seekingalpha.com/symbol/ISBA]) and Orange County Bancorp (OBT [https://seekingalpha.com/symbol/OBT]) rounding out the rest of the top five, all combining favorable momentum scores with elevated P/B valuations.

Other notable names on the list, such as Amalgamated Financial (AMAL [https://seekingalpha.com/symbol/AMAL]) and Southern First Bancshares (SFST [https://seekingalpha.com/symbol/SFST]), also feature competitive P/B multiples alongside A+ momentum grades, keeping them in focus for investors seeking regional bank exposure with strong price performance characteristics.

Here is the list:

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Five Star Bancorp (FSBC [https://seekingalpha.com/symbol/FSBC]), momentum grade: A, price-to-book (P/B) multiple: 1.95x

*
Northeast Bank (NBN [https://seekingalpha.com/symbol/NBN]), momentum grade: A, price-to-book (P/B) multiple: 1.86x

*
Red River Bancshares, Inc. (RRBI [https://seekingalpha.com/symbol/RRBI]), momentum grade: A+, price-to-book (P/B) multiple: 1.67x

*
Isabella Bank Corporation (ISBA [https://seekingalpha.com/symbol/ISBA]), momentum grade: A+, price-to-book (P/B) multiple: 1.66x

*
Orange County Bancorp, Inc. (OBT [https://seekingalpha.com/symbol/OBT]), momentum grade: A, price-to-book (P/B) multiple: 1.65x

*
Live Oak Bancshares, Inc. (LOB [https://seekingalpha.com/symbol/LOB]), momentum grade: A, price-to-book (P/B) multiple: 1.63x

*
West Bancorporation, Inc. (WTBA [https://seekingalpha.com/symbol/WTBA]), momentum grade: A-, price-to-book (P/B) multiple: 1.62x

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Amalgamated Financial Corp. (AMAL [https://seekingalpha.com/symbol/AMAL]), momentum grade: A+, price-to-book (P/B) multiple: 1.57x

*
Plumas Bancorp (PLBC [https://seekingalpha.com/symbol/PLBC]), momentum grade: A-, price-to-book (P/B) multiple: 1.41x

*
Southern First Bancshares, Inc. (SFST [https://seekingalpha.com/symbol/SFST]), momentum grade: A+, price-to-book (P/B) multiple: 1.35x

Financials ETFs: (XLF [https://seekingalpha.com/symbol/XLF]), (VFH [https://seekingalpha.com/symbol/VFH]), (IYF [https://seekingalpha.com/symbol/IYF]), (FNCL [https://seekingalpha.com/symbol/FNCL]), (IYG [https://seekingalpha.com/symbol/IYG]), and (FXO [https://seekingalpha.com/symbol/FXO])

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