Banks play a critical role in the financial system, providing everything from commercial loans to wealth management and payment processing services. But concerns about loan losses and tightening regulations have tempered enthusiasm, and over the past six months, the banking industry has pulled back by 10.6%. This drawdown was especially disappointing since the S&P 500 held steady.

A cautious approach is imperative when dabbling in banks as many are sensitive to interest rate changes and economic cycles. With that said, here are three bank stocks we’re swiping left on.

Home Bancshares (HOMB)

Market Cap: $5.70 billion

Founded in Conway, Arkansas in 1998 and growing through strategic acquisitions across the Southeast, Home Bancshares (NYSE:HOMB) operates as the bank holding company for Centennial Bank, providing commercial and retail banking services to businesses and individuals across multiple states.

Why Is HOMB Not Exciting?

1. Sales stagnated over the last two years and signal the need for new growth strategies

2. Estimated net interest income growth of 1.4% for the next 12 months implies demand will slow from its four-year trend

3. Productivity and efficiency ratio profits are expected to increase next year as some fixed cost leverage kicks in

Home Bancshares’s stock price of $28.75 implies a valuation ratio of 1.4x forward P/B. Dive into our free research report to see why there are better opportunities than HOMB.

Glacier Bancorp (GBCI)

Market Cap: $4.95 billion

Operating through seventeen distinct bank divisions with local brands and management teams, Glacier Bancorp (NYSE:GBCI) is a bank holding company that provides various banking services to individuals and businesses across eight western states.

Why Do We Think Twice About GBCI?

1. Sales tumbled by 2.5% annually over the last two years, showing market trends are working against its favor during this cycle

2. Annual net interest income growth of 4% over the last four years was below our standards for the bank sector

3. Sales were less profitable over the last two years as its earnings per share fell by 16.5% annually, worse than its revenue declines

Glacier Bancorp is trading at $43.81 per share, or 1.4x forward P/B. To fully understand why you should be careful with GBCI, check out our full research report (it’s free).

CVB Financial (CVBF)

Market Cap: $2.66 billion

With roots dating back to 1974 and a focus on serving small and medium-sized businesses, CVB Financial (NASDAQ:CVBF) operates Citizens Business Bank, providing banking, lending, and trust services to businesses and individuals across California.