U.S. bank stocks rallied with the broader market in October. The S&P U.S. BMI Banks index rose 6.2% on a total return basis last month, while the S&P 500 finished up 7.0%.

The rally was widespread in the banking sector. Of the 211 companies in the S&P Global Market Intelligence analysis, just 22 had a negative total return. The top market performers were Pittsburgh-based TriState Capital Holdings Inc. (42.1%); Wilmington, N.C.-based Live Oak Bancshares Inc. (40.2%); and La Jolla, Calif.-based Silvergate Capital Corp. (35.6%). One of the worst performers was New York-based CIT Group Inc., which fell by 4.0%.

CIT announced a merger of equals with Raleigh, N.C.-based First Citizens BancShares Inc. in October 2020. The timing of the deal completion is uncertain as the banks still are seeking approval from the Federal Reserve.

For the last 12 months, CIT has traded at a discount to the industry median in terms of price-to-adjusted tangible book value. The gap has ranged from 8 percentage points at the end of February to 69 percentage points as of Oct. 29. On the other hand, First Citizens has traded at a premium between 46 percentage points and 98 percentage points.

Philadelphia-based Republic First Bancorp Inc. continued as the cheapest bank in the analysis by P/ATBV. Its valuation at the end of October was 67.2%.

Entries to the bottom-20 valuation list in October were Boston-based Berkshire Hills Bancorp Inc.; New York-based Amalgamated Financial Corp.; Porterville, Calif.-based Sierra Bancorp; and Millersburg, Pa.-based Mid Penn Bancorp Inc.

The four exits were Martinsville, Va.-based Carter Bankshares Inc.; Leawood, Kan.-based CrossFirst Bankshares Inc.; Uniondale, N.Y.-based Flushing Financial Corp.; and Lubbock, Texas-based South Plains Financial Inc.

Click here to see S&P Global Market Intelligence's calculations for price-to-adjusted tangible book value as of Oct. 29.