Even before last year’s regional banking crisis, Warren Buffett was bailing on bank stocks. Gone from the portfolio were long-time holdings like Wells Fargo (NYSE:WFC), U.S. Bank (NYSE:USB) and Goldman Sachs (NYSE:GS).

He became disenchanted with the financial institutions and how they operated. He thought they were taking “dumb” risks and were misleading investors by using deceptive accounting tricks to pad their bottom lines. After seeing some red flags in their financial statements, Buffett dumped their shares from Berkshire Hathaway (NYSE:BRK-A)(NYSE:BRK-B).

The subsequent collapse of Silicon Valley Bank and Signature Bank seemed to prove just what Buffett was saying.

And yet Buffett didn’t sell all of his bank stocks. In fact, he owns six bank stocks, a few acquired after he dumped many of the old line banks. For example, Nu Holdings (NASDAQ:NU), a new-fangled, all-digital Brazilian banking outfit, was bought in 2021. Recently he acquired stock in five Japanese banks, businesses he says he believes their United States counterparts could learn a lot from.

Below are three Warren Buffett bank stocks that comprise the largest holdings in Berkshire Hathaway.

Buffet’s Bank Stocks: Citigroup (C)

Citigroup (NYSE:C) is performing more like an artificial intelligence stock than a bank stock. Shares of the financial firm are up 63% from the lows hit last October and are running 21% higher in 2024. That vindicates the support Buffett has provided the bank, which assumes almost 1% in his portfolio.

The bank is undergoing a turnaround that is supercharging the stock. It reported first-quarter results last month that were better than Wall street expected. Revenue rose 1% from last year to $21.1 billion, better than analyst expectations of $20.4 billion. Although profits dropped 28% to $1.58 per share, they were much better than the consensus outlook of $1.20 per share. But Citi has now completed its overhaul that sought to significantly reduce costs, in part by effecting dramatic job cuts. It is also selling off over a dozen retail banking businesses.

Banking was Citi’s top-performing segment in the quarter as revenue jumped 49% on the surprising strength of investment banking and corporate lending. The bank’s return on tangible common equity improved dramatically to 9.9% from 1% last year and a negative 6.6% in the fourth quarter.

Buffett owns 55.2 million shares of Citigroup, or 2.9% of the bank’s outstanding shares.

American Express (AXP) 

Thought of as mostly as credit card company, American Express (NYSE:AXP) also offers savings accounts and certificates of deposit online. It also has an online bank called American Express National Bank with savings and checking accounts. 

American Express is one of Buffett’s oldest holdings, first acquired back in 1991. Remarkably, he has not bought a single share of AmEx since the late 1990s but time and the effects of compounding allowed it to become the fourth biggest position in Berkshire Hathaway’s portfolio. Buffett owns 151.6 million shares of the financial company or 21.1% of the total outstanding shares. With the stake valued at $35.4 billion, American Express occupies nearly 10% of the portfolio’s total.

AmEx also reported better-than-expected results with net interest income (NII), or the amount of money it earns from customers who keep a balance on their accounts, jumping 26% from last year. Not everyone fears the higher interest rates the Federal Reserve is charging. But by also targeting a younger demographic, American Express is enjoying significant growth. Chairman and CEO Stephen Squeri said  millennials and Gen Z consumers “accounted for over 60 percent of new consumer account acquisitions globally.”

Bank of America (BAC)

The premiere Warren Buffett bank stock is Bank of America (NYSE:BAC). It was also one of the bank stocks he was buying as the regional banking crisis shook faith in the country’s financial foundations. It took his holdings to over 1 billion shares, or 13.2% of the outstanding total.

At today’s prices, that stake is valued it at $38.8 billion, only surpassed by Apple (NASDAQ:AAPL) at $144 billion. As it is, the bank represents 10.7% of Berkshire Hathaway’s portfolio.

The financial giant, one of the biggest banks in the country, has also benefited from high interest rates boosting NII. While it also increased unrealized losses, Bank of America should be able to outlast the storm until those assets come to maturity. The stock market appreciates the stability the bank offers as shares have shot 50% higher from their lows and stand 12% above where they started 2024. 

There is no indication Buffett plans to pare his stake in Bank of America as he has been doing with Apple and it will remain a stalwart of Berkshire Hathaway.

On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.