Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 stocks made the list for top value stocks in the Banks industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Banks Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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7 Undervalued Banks Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 7 undervalued stocks in the Banks industry for Thursday, March 06, 2025. Let’s take a closer look at their individual scores to see how they measure up against each other and the Banks industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Civista Bancshares, Inc.’s Value Grade

Value Grade:

Civista Bancshares, Inc. operates as the financial holding company for Civista Bank that provides community banking services. It collects a range of customer deposits; and offers commercial and agriculture, commercial and residential real estate, farm real estate, real estate construction, consumer, and other loans, as well as letters of credit. The company also holds and manages securities portfolio; leases general equipment; and provides captive insurance products. It operates in North Central, West Central, South Western Ohio, South Eastern Indiana, and Northern Kentucky. The company was formerly known as First Citizens Banc Corp and changed its name to Civista Bancshares, Inc. in May 2015. Civista Bancshares, Inc. was founded in 1884 and is headquartered in Sandusky, Ohio.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Civista Bancshares, Inc. has a Value Score of 73, which is considered to be undervalued.

When you look at Civista Bancshares, Inc.’s price-to-sales ratio at 2.02 compared to the industry median at 2.92, this company has a lower price relative to revenue compared to its peers. This could make Civista Bancshares, Inc.’s stock more attractive for value investors.

Civista Bancshares, Inc.’s price-earnings ratio is 9.80 compared to the industry median at 11.70. This means it has a lower share price relative to earnings compared to its peers. This could make Civista Bancshares, Inc. more attractive for value investors.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Civista Bancshares, Inc.’s shareholder yield is lower than its industry median ratio of 2.90%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Civista Bancshares, Inc.’s price-to-book ratio is lower than its industry median ratio of 0.98. This could make Civista Bancshares, Inc. more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Civista Bancshares, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Civista Bancshares, Inc.’s price-to-free-cash-flow ratio is higher than its industry median ratio of 16.30. This could make Civista Bancshares, Inc. less attractive because the higher P/FCF ratio indicates that Civista Bancshares, Inc. is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

First Horizon Corporation’s Value Grade

Value Grade:

First Horizon Corporation operates as the bank holding company for First Horizon Bank that provides various financial services. The company operates through Regional Banking and Specialty Banking segments. It offers general banking services for consumers, businesses, financial institutions, and governments. The company also accepts deposits; provides underwriting services for bank-eligible securities and other fixed-income securities by financial subsidiaries; sells loans and derivatives; financial planning; and offers investment and financial advisory services. In addition, it offers mortgage banking; loan syndications; brokerage services; commercial and business banking for business enterprises, consumer banking, and private client and wealth management services; capital markets, professional commercial real estate, mortgage warehouse and asset-based lending, franchise and equipment finance, tax credit finance, energy and healthcare finance, asset management, and corporate and correspondent banking services. Further, the company provides transaction processing services including check clearing services and remittance processing, credit cards, investment, and sale of mutual fund and retail insurances, as well as trust, fiduciary, and agency services. First Horizon Corporation was founded in 1864 and is headquartered in Memphis, Tennessee.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

First Horizon Corporation has a Value Score of 69, which is considered to be undervalued.

First Horizon Corporation’s price-earnings ratio is 14.6 compared to the industry median at 11.7. This means that it has a higher price relative to its earnings compared to its peers. This makes First Horizon Corporation less attractive for value investors.

First Horizon Corporation’s price-to-book ratio is lower than its peers. This could make First Horizon Corporation more attractive for value investors when compared to the industry median at 0.98.

You can read more about First Horizon Corporation’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Hancock Whitney Corporation’s Value Grade

Value Grade:

Hancock Whitney Corporation operates as the financial holding company for Hancock Whitney Bank that provides traditional and online banking services to commercial, small business, and retail customers in the United States. It offers various transaction and savings deposit products consisting of brokered deposits, time deposits, and money market accounts; treasury management services, secured and unsecured loan products, including revolving credit facilities, and letters of credit and similar financial guarantees; and trust and investment management services to retirement plans, corporations, individuals, and investment advisory and brokerage products. The company also provides commercial and industrial loans including real and non-real estate loans; commercial real estate; construction and land development loans; and residential mortgages, as well as consumer loans. In addition, it offers commercial finance products to middle market and corporate clients, including leases and related structures; facilitates investments in new market tax credit activities and holding certain foreclosed assets; provides customers access to fixed annuity, life insurance products, investment management, and other services; and underwriting transactions products, as well as debt and mortgage-related securities. The company was founded in 1899 and is headquartered in Gulfport, Mississippi.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Hancock Whitney Corporation has a Value Score of 71, which is considered to be undervalued.

Hancock Whitney Corporation’s price-earnings ratio is 10.2 compared to the industry median at 11.7. This means that it has a lower price relative to its earnings compared to its peers. This makes Hancock Whitney Corporation more attractive for value investors.

Hancock Whitney Corporation’s price-to-book ratio is lower than its peers. This could make Hancock Whitney Corporation more attractive for value investors when compared to the industry median at 0.98.

You can read more about Hancock Whitney Corporation’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

NASB Financial, Inc.’s Value Grade

Value Grade:

NASB Financial, Inc. operates as a holding company for North American Savings Bank, F.S.B. and Nor-Am Service Corporation that provides various banking products and services in the United States. The company offers demand deposit, savings, money market, and certificate of deposit accounts, as well as brokered accounts. It also provides mortgages and refinancing products, including conventional, veterans administration, and federal housing administration. In addition, the company offers residential mortgages, commercial real estate, construction and development, commercial, investment property, and personal loans. The company was founded in 1927 and is based in Grandview, Missouri.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

NASB Financial, Inc. has a Value Score of 84, which is considered to be undervalued.

NASB Financial, Inc.’s price-earnings ratio is 9.4 compared to the industry median at 11.7. This means that it has a lower price relative to its earnings compared to its peers. This makes NASB Financial, Inc. more attractive for value investors.

NASB Financial, Inc.’s price-to-book ratio is higher than its peers. This could make NASB Financial, Inc. less attractive for value investors when compared to the industry median at 0.98.

You can read more about NASB Financial, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Orange County Bancorp, Inc.’s Value Grade

Value Grade:

Orange County Bancorp, Inc., through its subsidiaries, provides commercial and consumer banking products and services, and trust and wealth management services to small businesses, middle-market enterprises, local municipal governments, and individuals. It accepts various deposits, including interest-bearing and noninterest-bearing demand accounts, money market deposit accounts, savings accounts, and certificates of deposit. The company also offers commercial real estate loans, commercial and industrial loans, commercial real estate construction loans, residential real estate loans, home equity loans, and consumer loans. In addition, it provides traditional trust and administration, asset management, financial planning, and wealth management services. The company operates full-service branches and loan production office in Orange, Westchester, Rockland, and Bronx counties in New York. Orange County Bancorp, Inc. was founded in 1892 and is headquartered in Middletown, New York.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Orange County Bancorp, Inc. has a Value Score of 69, which is considered to be undervalued.

Orange County Bancorp, Inc.’s price-earnings ratio is 10.0 compared to the industry median at 11.7. This means that it has a lower price relative to its earnings compared to its peers. This makes Orange County Bancorp, Inc. more attractive for value investors.

Orange County Bancorp, Inc.’s price-to-book ratio is lower than its peers. This could make Orange County Bancorp, Inc. more attractive for value investors when compared to the industry median at 0.98.

You can read more about Orange County Bancorp, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Peoples Bancorp Inc.’s Value Grade

Value Grade:

Peoples Bancorp Inc. operates as the holding company for Peoples Bank that provides commercial and consumer banking products and services. The company accepts various deposit products, including demand deposit accounts, savings accounts, money market accounts, certificates of deposit, and governmental deposits; and provides commercial and industrial, commercial real estate, construction, finance, residential real estate, and consumer indirect and direct loans, as well as home equity lines of credit and overdrafts. It also offers debit and automated teller machine (ATM) cards; safe deposit rental facilities; money orders and cashier’s checks; and telephone, mobile, and online banking services. In addition, the company provides various life, health, and property and casualty insurance products; third-party insurance administration; interactive teller machines; insurance premium financing; check deposit and alert notification; commercial and technology equipment leasing; fiduciary and trust; underwriting, origination, and servicing of equipment leases, and equipment financing agreements; and asset management and administration services, as well as employee benefit, retirement, and health care plan administration services. Further, it offers brokerage services through an unaffiliated registered broker-dealers; insurance premium finance lending and leasing; and credit cards to individuals and businesses, as well as provides merchant credit card transaction processing, and person-to-person payment processing services. Peoples Bancorp Inc. was founded in 1902 and is headquartered in Marietta, Ohio.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Peoples Bancorp Inc. has a Value Score of 84, which is considered to be undervalued.

Peoples Bancorp Inc.’s price-earnings ratio is 9.3 compared to the industry median at 11.7. This means that it has a lower price relative to its earnings compared to its peers. This makes Peoples Bancorp Inc. more attractive for value investors.

Peoples Bancorp Inc.’s price-to-book ratio is lower than its peers. This could make Peoples Bancorp Inc. fairly attractive for value investors when compared to the industry median at 0.98.

You can read more about Peoples Bancorp Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Southern Missouri Bancorp, Inc.’s Value Grade

Value Grade:

Southern Missouri Bancorp, Inc. operates as the bank holding company for Southern Bank that provides banking and financial services to individuals and corporate customers in the United States. The company offers deposits products, including interest-bearing and noninterest-bearing transaction accounts, saving accounts, certificates of deposit, retirement savings plans, and money market deposit accounts. It also provides loans, such as residential mortgage, commercial real estate, construction, and commercial business loans; and consumer loans comprising home equity, direct and indirect automobile loans, second mortgages, mobile home loans, and loans secured by deposits. In addition, the company offers fiduciary and investment management services; commercial and consumer insurance; online and mobile banking services; and debit or credit cards. The company was founded in 1887 and is headquartered in Poplar Bluff, Missouri.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Southern Missouri Bancorp, Inc. has a Value Score of 62, which is considered to be undervalued.

Southern Missouri Bancorp, Inc.’s price-earnings ratio is 12.1 compared to the industry median at 11.7. This means that it has a higher price relative to its earnings compared to its peers. This makes Southern Missouri Bancorp, Inc. less attractive for value investors.

Southern Missouri Bancorp, Inc.’s price-to-book ratio is lower than its peers. This could make Southern Missouri Bancorp, Inc. more attractive for value investors when compared to the industry median at 0.98.

You can read more about Southern Missouri Bancorp, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Banks Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Banks stocks as well as other industrys.

Choosing Which of the 7 Best Banks Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Civista Bancshares, Inc. stock has a Value Grade of B.
• First Horizon Corporation stock has a Value Grade of B.
• Hancock Whitney Corporation stock has a Value Grade of B.
• NASB Financial, Inc. stock has a Value Grade of A.
• Orange County Bancorp, Inc. stock has a Value Grade of B.
• Peoples Bancorp Inc. stock has a Value Grade of A.
• Southern Missouri Bancorp, Inc. stock has a Value Grade of B.

Now that you have a bit more background about each of the 7 undervalued stocks in the Banks industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Banks Stocks

Want to learn more about Banks stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 7 Undervalued Banks Stocks for Thursday, March 06
• Which Is a Better Investment, Atlantic Union Bankshares Corporation or Bank of Hawaii Corporation Stock?
• Which Is a Better Investment, Atlantic Union Bankshares Corporation or Trustmark Corporation Stock?
• Which Is a Better Investment, Atlantic Union Bankshares Corporation or Western Alliance Bancorporation Stock?

AAII Disclaimer

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