“Never invest in a business you cannot understand”
Warren Buffett
The banking business is one of the easy-to-understand businesses.
It’s very easy to comprehend how banks make money, whether it’s a commercial bank, investment bank or universal bank.
And this is one of the many reasons why bank stocks are good stocks for any stock investor to consider buying.
Warren Buffett’s Berkshire own stacks worth over $1 billion in bank stocks, including a very large stack in Bank of America.
If you are looking for bank stocks under $20 or under $10, the following list of stocks are cheap (small-cap) bank stocks that are currently (at the time of writing) under $10 or $20.
They make a good list to consider if you are looking to invest in cheap bank stocks:
Bank Stocks Under $20
1. Amalgamated Bank
Amalgamated Bank, together with its subsidiaries, operates as a commercial bank and a chartered trust company in the United States.
The company offers deposit products, including non-interest and interest-bearing demand accounts, savings and money market accounts, NOW accounts, and certificates of deposit.
It also provides residential mortgage and commercial real estate loans, commercial and industrial loans, multifamily mortgages, 1-4 family real estate loans, construction and land loans, leveraged loans for commercial loans, consumer/small business and purchased student loans, and home equity lines of credit.
In addition, the company offers online banking, bill payment, online cash management, and safe deposit box rental services; debit, prepaid, and ATM cards; and trust, custody, and investment management services comprising asset safekeeping, corporate actions, income collections, proxy, account transition, asset transfers, and conversion management services.
Further, it provides investment products, such as equity, fixed-income, real estate, and alternative investment products; and brokerage, asset management, and insurance products.
It serves advocacy-based non-profits, social welfare organizations, labor unions, political organizations, foundations, socially responsible businesses, and other for-profit companies, as well as their members and stakeholders.
The company operates a network of 11 branches in New York City; one branch in Washington, D.C.; and one branch in San Francisco, as well as a digital banking and mobile platform.
It was formerly known as Amalgamated Bank of New York and changed its name to Amalgamated Bank in 2000. The company was founded in 1923 and is headquartered in New York, New York. Amalgamated Bank is a subsidiary of Workers United.
2. American River Bankshares
American River Bankshares operates as the holding company for American River Bank that provides commercial banking products and services in the United States.
The company accepts checking and savings deposits; and offers money market deposit accounts and certificates of deposit.
It also provides commercial, commercial real estate, multi-family real estate, commercial and residential real estate construction, residential real estate, agriculture, consumer, and other installment and term loans, as well as other customary banking services.
In addition, the company conducts lease financing for various types of business equipment ranging from computer software to heavy earth-moving equipment.
It operates four full-service banking offices in Sacramento County, one full-service banking office in Placer County, two full-service banking offices in Sonoma County, and three full-service banking offices in Amador County.
The company serves small and mid-sized businesses, and individuals.
The company was formerly known as American River Holdings and changed its name to American River Bankshares in 2004.
American River Bankshares was founded in 1983 and is headquartered in Rancho Cordova, California.
3. Bank of South Carolina Corporation
Bank of South Carolina Corporation operates as the holding company for The Bank of South Carolina that provides commercial banking services to individuals, professionals, and small and middle market businesses in South Carolina.
The company offers a range of deposit products, including non-interest bearing demand accounts, NOW accounts, money market accounts, time deposits, and savings accounts, as well as certificates of deposit.
It also provides secured and unsecured loans; commercial real estate loans; consumer loans, including construction, real estate, HELOCs, and mortgage; and home equity loans and lines of credit.
It operates through Charleston, Summerville, and Mount Pleasant banking house locations in South Carolina. Bank of South Carolina Corporation was founded in 1986 and is headquartered in Charleston, South Carolina.
4. CenterState Bank Corporation
CenterState Bank Corp. is a financial holding company, which engages in the provision of consumer and commercial banking services.
It operates through following segments: Commercial and Retail Banking, Correspondent Banking and Capital Markets Division, and Corporate Overhead and Administration.
- The Commercial and Retail Banking segment offers traditional retail, commercial, mortgage, wealth management, and small business administration (SBA) services.
- The Correspondent Banking and Capital Markets Division segment includes safe-keeping activities, bond accounting services, asset and liability consulting services, international wires, clearing and corporate checking account services, and other correspondent banking related services.
- The Corporate Overhead and Administration segment comprises inter-company management fees, interest on parent company debt, office occupancy and depreciation of parent company facilities, merger related costs, and other expenses.
The company was founded on September 20, 1999 and is headquartered in Winter Haven, FL.
5. Independent Bank Corporation
Independent Bank Corporation operates as the holding company for Independent Bank that provides various banking services to individuals and businesses in Michigan.
The company offers checking and savings accounts, commercial lending, direct and indirect consumer financing, mortgage lending, and safe deposit box services, as well as automatic teller machines, and Internet and mobile banking services.
It also provides title insurance, investment, and insurance brokerage services.
The company offers its services through approximately 67 branches, 1 drive-thru facility, and 12 loan production offices.
Independent Bank Corporation was founded in 1864 and is based in Grand Rapids, Michigan.
6. Summit State Bank
Summit State Bank provides various banking products and services to individuals and businesses primarily in Sonoma County, California.
It offers personal and business checking, money market, sweep, savings, and demand accounts; time certificates of deposit; and specialized deposit accounts, such as professional, small business packaged, tiered, and Keogh and individual retirement accounts.
The company also provides loans, including commercial loans and leases; lines of credit; commercial real estate, small business administration, residential mortgage, and construction loans; and home equity lines of credit, as well as term loans, credit lines to individuals, equipment loans, and business lines of credit.
Its loan products also comprise loans for accounts receivable and inventory financing, loans to agriculture-related businesses, and equipment and expansion financing programs.
In addition, the company provides Internet and telephone banking; and other services, including banking by appointment, online banking, direct payroll and social security deposits, letters of credit, access to national automated teller machine networks, courier, safe deposit boxes, night depository facilities, notary, travelers checks, lockbox, and banking by mail.
Further, it offers cash management and electronic bill payment services.
The company operates through five depository offices located in Santa Rosa, Rohnert Park, Healdsburg, and Petaluma, as well as loan production office in Roseville, California.
Summit State Bank was founded in 1982 and is headquartered in Santa Rosa, California.
Bank Stocks Under $10
1. Bank of Commerce Holdings
Bank of Commerce Holdings operates as the bank holding company for Redding Bank of Commerce that provides a range of financial services and products for retail customers and small to medium-sized businesses in California.
Its deposit products include checking, interest-bearing checking, money market, and savings accounts, as well as certificates of deposit.
The company also offers commercial loans, commercial real estate loans, residential real estate loans, consumer loans, construction loans, term loans, and small business administration loans.
In addition, it provides sweep arrangements and safe deposit boxes; and collection, electronic banking, payroll processing, and ATM and point of sale services.
The company operates through 10 full service facilities and 1 limited service facility in northern California. Bank of Commerce Holdings is headquartered in Sacramento, California.
2. First Bank
First Bank provides various banking products and services to individuals, businesses, and governmental entities.
The company accepts various deposits, including non-interest bearing demand deposits, interest bearing demand accounts, money market accounts, savings accounts, and certificates of deposit, as well as commercial checking accounts.
Its loan products include commercial and industrial loans; commercial real estate loans, such as owner-occupied, investor, construction and development, and multi-family loans; residential real estate loans comprising residential mortgages, first and second lien home equity loans, and revolving lines of credit; and consumer loans, which consist of auto, personal, and traditional installment loans, as well as other loans.
The company also provides electronic banking services, including Internet and mobile banking, electronic bill payment, and banking by phone, as well as ATM and debit cards, and wire and ACH transfer services; and remote deposit capture and cash management services.
As of December 31, 2019, it operated 18 full-service branches in Mercer County, Gloucester, Hunterdon, Middlesex, Morris, and Somerset Counties in New Jersey, as well as in Bucks and Chester Counties in Pennsylvania.
First Bank was founded in 2007 and is headquartered in Hamilton, New Jersey.
3. ICICI Bank Limited
ICICI Bank Limited provides banking and financial services in India and internationally.
It operates in Retail Banking, Wholesale Banking, Treasury, Other Banking Business, Life insurance, General insurance, and Others segments.
The company offers savings, salary, pension, current, and other accounts; and fixed, recurring, and security deposits.
It also provides home, car, two wheeler, personal, gold, and commercial business loans, as well as loans against securities and other loans; business loans, such as working capital finance, term loans, collateral free loans, loans without financials, finance for importers and exporters, and secured loans for credit card swipes, as well as loans for new entities, and schools and colleges; and credit, debit, prepaid, travel, and corporate cards.
In addition, the company offers insurance products; pockets wallet; fixed income products; investment products, such as mutual funds, gold monetization schemes, and initial public offerings, as well as other online investment services; and farmer finance, tractor loans, and micro banking services, as well as other services to agri traders and processors, and agri corporates.
Further, it provides portfolio management, trade, foreign exchange, locker, private and NRI banking, and cash management services; family wealth and demat accounts; commercial and investment banking, capital market, custodial, project and technology finance, and institutional banking services, as well as Internet, mobile, and phone banking services.
Additionally, the company offers securities investment, broking, trading, and underwriting services; and merchant banking, private equity/venture capital fund management, trusteeship, housing finace, and pension fund management services.
As of March 31, 2019, it had a network of 4,874 branches, 14,987 ATMs, 1,167 insta-banking kiosks, 391,625 POS terminals, and 1,451 cash acceptance machines. ICICI Bank Limited was founded in 1955 and is headquartered in Mumbai, India.
4. TrustCoo Bank Corp NY
TrustCo Bank Corp NY operates as the holding company for Trustco Bank, a federal savings bank that provides personal and business banking services to individuals, partnerships, and corporations.
The company is primarily involved in accepting deposits, and making loans and investments.
It also operates as a real estate investment trust that acquires, holds, and manages real estate mortgage assets, including residential mortgage loans and mortgage backed securities.
In addition, the company serves as the executor of estates and trustee of personal trusts; provides asset and wealth management, estate planning and related advice, and custodial services; and acts as trustee for various types of employee benefit plans, and corporate pension and profit sharing trusts.
As of December 31, 2019, it operated 148 banking offices and 162 automatic teller machines in New York, Florida, Vermont, Massachusetts, and New Jersey.
The company was founded in 1902 and is headquartered in Glenville, New York.
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