U.S. bank stock returns plunged further in April, continuing their downward streak amid red-hot inflation and rising interest rates, an S&P Global Market Intelligence analysis shows.

Major exchange-traded U.S. bank stocks returned a negative 5.8% in April, compared to a negative 3.1% in March and 0.5% in February.

Still, they outpaced the S&P 500 and the S&P U.S. BMI Banks indexes, both of which have not managed to arrest a decline in returns.

More modest returns for top performers

Portland, Maine-based Northeast Bank and York, Pa.-based Codorus Valley Bancorp Inc. emerged from negative territory to become the top-performing stocks in April, with month-to-date total returns of 9.7% and 9.3%, respectively.

Although well above the industry median, these returns are more modest compared to the returns of the previous two months' top performers. Emlenton, Pa.-based Emclaire Financial Corp. posted a 34.0% return in March, and Memphis, Tenn.-based First Horizon Corp. had a 37.2% return in February.

The rest of the top 20 returns in April ranged from 3.1% to 7.1%. Shares of Puerto Rico-based First BanCorp., the biggest bank in the group in terms of market capitalization, had a total return of 3.7%.

M&A targets among worst performers

One bank involved in an announced deal found itself in the worst-performing group in April. Troy, Mich.-based Flagstar Bancorp Inc. saw a negative return of 16.7%, down from a negative 5.09% in March. The company is being acquired by New York Community Bancorp Inc.

Returns for Philadelphia-based Republic First Bancorp Inc. sunk deeper from a negative 3.47% in March to a negative 18.8% in April, the month following an activist shareholder group's offer to obtain up to a majority stake in the company.

Meanwhile, La Jolla, Calif.-based Silvergate Capital Corp., a top performer in the last two months, slid back down into the below-zero group, ending April with a month-to-date total return of negative 22.3%, only two spots shy of Dallas-based Triumph Bancorp Inc., the worst-performing U.S. bank stock for the month at negative 26.1%