The stock market has been rather strong in 2023 after a weak 2022. Through Dec. 12, the S&P 500 benchmark index had risen by 21% for the year and is hovering at a new 52-week high.

Not all areas of the stock market have done quite so well. The financial sector is one that has underperformed the market, with a 7% gain so far this year, 14 percentage points below that of the S&P. There are some good reasons: Rising rates have made it tougher for brick-and-mortar banks to compete with online rivals for deposits; there are still widespread fears of a recession and rising loan defaults in 2024; and of course, many investors are still hesitant to pull the trigger on bank stocks after several high-profile bank failures earlier this year.

While these are some legitimate concerns for sure, the fact is that patient, long-term investors can find some excellent bargains in the banking industry right now. Here are two in particular that could be worth a closer look.

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Source Fool.com