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3 Good Bank Stocks Under $20

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Warren Buffett is a big fan of bank stocks. His holding company, Berkshire Hathaway (BRK.B), owns billions of dollars' worth of shares of some of the nation's biggest banks including Bank of New York Mellon (BK), Goldman Sachs (GS), M&T Bank (MTB), U.S. Bancorp (USB) and Wells Fargo (WFC). Buffett really loves bank stocks when the Federal Reserve is hiking interest rates, a monetary-policy cycle that can boost banks' bottom lines.

But how do you jump on the bank bandwagon if you're a small investors lacking Buffett's billions? One cost-effective approach is to focus on low-priced shares of smaller regional banks that can profit from the same tailwinds that are benefiting big banks. We found three promising regional bank stocks trading under $20 that look attractive.

SEE ALSO: Best Dividend Stocks Owned by Billionaires

But before you place a buy order, don't neglect to weigh the impact of trading commissions. Let's say you want to invest $100 in each of the three bank stocks we recommend. Even at just $4.95 per online trade, the going rate at brokerages such as Fidelity and Schwab, your investment would already be down 5%. For small trades, consider opening a free Robinhood account instead. You can use the brokerage's smartphone app to make no-commission stock trades. An upgrade to the premium service, which gives investors access to after-hours trading and margin accounts, starts at $10 a month.

Data is as of May 2, 2017, unless otherwise indicated. Click on ticker-symbol links for current share prices and more.

(Stocks are listed in alphabetical order. Analyst ratings are per Zacks and Thomson Reuters.)

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