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, June 05, 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.

Colony Bankcorp, Inc.’s Value Grade

Value Grade:

Colony Bankcorp, Inc. operates as the bank holding company for Colony Bank that provides various banking products and services to retail and commercial customers in the United States. It operates through Bank, Mortgage Banking, and Small Business Specialty Lending Division segments. The company offers deposit products, including checking, savings, money market, and other deposit options; and treasury solutions, merchant services, and other financial tools that support businesses in managing cash flow and operational efficiency. It also provides loans to small and medium-sized businesses; residential and commercial construction, and land development loans; commercial real estate loans; commercial loans; agri-business and production loans; residential mortgage loans; home equity loans; consumer loans; and small business administration and other government guaranteed loans. In addition, the company offers internet banking services, electronic bill payment services, safe deposit box rentals, telephone banking, credit and debit card services, and remote depository products, as well as access to a network of ATMs. Colony Bankcorp, Inc. was founded in 1975 and is headquartered in Fitzgerald, Georgia.

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.

Colony Bankcorp, Inc. has a Value Score of 79, which is considered to be undervalued.

When you look at Colony Bankcorp, Inc.’s price-to-sales ratio at 2.39 compared to the industry median at 2.83, this company has a lower price relative to revenue compared to its peers. This could make Colony Bankcorp, Inc.’s stock more attractive for value investors.

Colony Bankcorp, Inc.’s price-earnings ratio is 10.80 compared to the industry median at 11.20. This means it has a lower share price relative to earnings compared to its peers. This could make Colony Bankcorp, 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. Colony Bankcorp, Inc.’s shareholder yield is higher than its industry median ratio of 2.85%. 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. Colony Bankcorp, Inc.’s price-to-book ratio is higher than its industry median ratio of 0.97. This could make Colony Bankcorp, Inc. fairly attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Colony Bankcorp, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Colony Bankcorp, Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 13.90. This could make Colony Bankcorp, Inc. more attractive because the lower P/FCF ratio indicates that Colony Bankcorp, 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.

Customers Bancorp, Inc.’s Value Grade

Value Grade:

Customers Bancorp, Inc. operates as the bank holding company for Customers Bank that provides banking products and services. The company provides deposit banking products, which includes commercial and consumer checking, non-interest-bearing and interest-bearing demand, MMDA, savings, and time deposit accounts, as well as individual retirement accounts and non-retail time deposits consisting of jumbo certificates. Its lending business offers commercial and industrial, commercial real estate, and multifamily and residential mortgage loans; SBA lending; mortgage financing; specialty lending includes fund finance, real estate specialty finance, technology and venture, and healthcare and financial institutions group; commercial loans to mortgage companies, and commercial equipment financing; fund finance, such as variable rate loans secured by collateral pools to private debt funds; and cash management services. In addition, the company provides digital banking, such as Banking-as-a-Service to fintech companies; payments and treasury services to businesses; consumer loans through fintech companies; and the TassatPay, an instant blockchain-based digital payments platform which offers instant payments, including over-the-counter desks, exchanges, liquidity providers, market makers, funds, and other B2B verticals. Further, it offers mobile phone and internet banking, wire transfers, electronic bill payment, lock box, remote deposit capture, courier, merchant processing, cash vault, controlled disbursements, positive pay, and cash management services comprising account reconciliation, collections, and sweep accounts. The company was founded in 1997 and is headquartered in West Reading, Pennsylvania.

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.

Customers Bancorp, Inc. has a Value Score of 70, which is considered to be undervalued.

Customers Bancorp, Inc.’s price-earnings ratio is 12.7 compared to the industry median at 11.2. This means that it has a higher price relative to its earnings compared to its peers. This makes Customers Bancorp, Inc. less attractive for value investors.

Customers Bancorp, Inc.’s price-to-book ratio is higher than its peers. This could make Customers Bancorp, Inc. less attractive for value investors when compared to the industry median at 0.97.

You can read more about Customers 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.

PCB Bancorp’s Value Grade

Value Grade:

PCB Bancorp operates as the bank holding company for PCB Bank that provides various banking products and services to small and middle market businesses and individuals. The company offers demand, savings, money market, time deposits, and certificates of deposit; and remote deposit capture, courier deposit and positive pay services, zero balance accounts, and sweep accounts. It also provides real estate loans, including commercial and residential, small business administration (SBA) property, multifamily, and construction loans; commercial and industrial loans, such as commercial term and lines of credit, and SBA commercial term, trade finance, and mortgage warehouse; consumer loans comprising residential mortgage; and automobile loans, unsecured lines of credit, and term loans. In addition, the company offers access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; and mobile banking solutions, including remote check deposit and mobile bill pay. Further, it provides automated teller machines; and banking by telephone, mail, personal appointment, debit cards, direct deposit, and cashier’s checks, as well as treasury management, wire transfer, and automated clearing house services. The company operates through full-service branches in Los Angeles and Orange Counties, California; Bayside, New York; Englewood Cliffs and Palisades Park, New Jersey; and Carrollton and Dallas, Texas. It also operates loan production offices in Los Angeles and Orange Counties, California; Bellevue, Washington; and Atlanta, Georgia. The company was formerly known as Pacific City Financial Corporation and changed its name to PCB Bancorp in July 2019. PCB Bancorp was founded in 2003 and is headquartered in Los Angeles, California.

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.

PCB Bancorp has a Value Score of 82, which is considered to be undervalued.

PCB Bancorp’s price-earnings ratio is 9.9 compared to the industry median at 11.2. This means that it has a lower price relative to its earnings compared to its peers. This makes PCB Bancorp more attractive for value investors.

PCB Bancorp’s price-to-book ratio is higher than its peers. This could make PCB Bancorp less attractive for value investors when compared to the industry median at 0.97.

You can read more about PCB Bancorp’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.

River Financial Corporation’s Value Grade

Value Grade:

River Financial Corporation operates as the bank holding company for the River Bank & Trust that provides financial services to small to medium-sized businesses, organizations, entrepreneurs, and individuals in the United States. The company accepts demand, time, savings, and other deposits, including negotiable orders of withdrawal accounts; and interest-bearing transaction accounts, money market accounts, and certificates of deposit. It also offers commercial real estate term loans, residential mortgage loans, and construction and land development loans; home equity lines of credit; commercial and industrial loans; and consumer loans that consists of loans to purchase automobiles and other consumer durable goods. In addition, the company provides investment brokerage; commercial and retail online banking, automated bill payment, mobile banking, and remote deposit capture services; and loans and investments amortization and prepayment services. River Financial Corporation was founded in 2006 and is headquartered in Prattville, Alabama.

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.

River Financial Corporation has a Value Score of 80, which is considered to be undervalued.

River Financial Corporation’s price-earnings ratio is 7.4 compared to the industry median at 11.2. This means that it has a lower price relative to its earnings compared to its peers. This makes River Financial Corporation more attractive for value investors.

River Financial Corporation’s price-to-book ratio is lower than its peers. This could make River Financial Corporation more attractive for value investors when compared to the industry median at 0.97.

You can read more about River Financial 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.

S&T; Bancorp, Inc.’s Value Grade

Value Grade:

S&T; Bancorp, Inc. operates as the bank holding company for S&T; Bank that provides retail and commercial banking products and services to consumer, commercial, and small business in Pennsylvania and Ohio. The company accepts time and demand deposits; offers commercial and consumer loans; and cash management, brokerage, and trust services, as well as act as guardian and custodian of employee benefits. It also manages private investment accounts for individuals and institutions. In addition, the company distributes life insurance and long-term disability income insurance products; offers title insurance agency services to commercial customers; and acts as a reinsurer of credit life, accident, and health insurance policies. S&T; Bancorp, Inc. was founded in 1902 and is headquartered in Indiana, Pennsylvania.

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.

S&T; Bancorp, Inc. has a Value Score of 69, which is considered to be undervalued.

S&T; Bancorp, Inc.’s price-earnings ratio is 10.5 compared to the industry median at 11.2. This means that it has a lower price relative to its earnings compared to its peers. This makes S&T; Bancorp, Inc. more attractive for value investors.

S&T; Bancorp, Inc.’s price-to-book ratio is lower than its peers. This could make S&T; Bancorp, Inc. fairly attractive for value investors when compared to the industry median at 0.97.

You can read more about S&T; 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.

The Bancorp, Inc.’s Value Grade

Value Grade:

The Bancorp, Inc. operates as the financial holding company for The Bancorp Bank, National Association that provides banking products and services in the United States. It offers a range of deposit products and services, including checking, savings, money market, and commercial accounts. The company also provides securities-backed lines of credit and insurance policy cash value-backed lines of credit; investor advisor financing; financing to investment advisors; lease financing for commercial and government vehicle fleets, including trucks and other special purpose vehicles; commercial real estate bridge loans; and small business loans, as well as consumer fintech loans comprising short-term extensions of credit, including secured credit card loans, fixed term loans, payroll advances, and others. In addition, it offers automated clearing house (ACH) bill and other payment services; debit and prepaid card issuing services; card and bill payment, and ACH processing services; and account services. The company was incorporated in 1999 and is headquartered in Wilmington, Delaware.

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.

The Bancorp, Inc. has a Value Score of 65, which is considered to be undervalued.

The Bancorp, Inc.’s price-earnings ratio is 11.3 compared to the industry median at 11.2. This means that it has a higher price relative to its earnings compared to its peers. This makes The Bancorp, Inc. less attractive for value investors.

The Bancorp, Inc.’s price-to-book ratio is lower than its peers. This could make The Bancorp, Inc. more attractive for value investors when compared to the industry median at 0.97.

You can read more about The 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.

Webster Financial Corporation’s Value Grade

Value Grade:

Webster Financial Corporation operates as the bank holding company for Webster Bank, National Association that provides various financial products and services to businesses, individuals, and families in the United States. It operates through three segments: Commercial Banking, Healthcare Financial Services, and Consumer Banking. It offers checking, savings, and money market accounts; individual retirement account retirement savings; certificates of deposit; mortgages; home equity loans and lines of credit; business and commercial lines of credit; overdrafts; and term, commercial, student, SBA, and personal loans. The company also provides commercial real estate financing, equipment and lender finance, asset-based and community lending, and public finance solutions; financial planning, life and long-term insurance, personal retirement, and portfolio management solutions; employee retirement plans; credit cards; payroll services; automated clearing house payables and wires; bill pay, remote deposit capture, merchant, and lockbox services; treasury management and investment services; private banking services; capital markets and finance solutions; employee benefits solutions, including administrators of HSAs, emergency savings accounts, and flexible spending accounts administration services; wealth management services; and online and mobile banking services. Webster Financial Corporation was founded in 1870 and is headquartered in Stamford, Connecticut.

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.

Webster Financial Corporation has a Value Score of 74, which is considered to be undervalued.

Webster Financial Corporation’s price-earnings ratio is 11.7 compared to the industry median at 11.2. This means that it has a higher price relative to its earnings compared to its peers. This makes Webster Financial Corporation less attractive for value investors.

Webster Financial Corporation’s price-to-book ratio is lower than its peers. This could make Webster Financial Corporation fairly attractive for value investors when compared to the industry median at 0.97.

You can read more about Webster Financial 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.

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.

• Colony Bankcorp, Inc. stock has a Value Grade of B.
• Customers Bancorp, Inc. stock has a Value Grade of B.
• PCB Bancorp stock has a Value Grade of A.
• River Financial Corporation stock has a Value Grade of B.
• S&T; Bancorp, Inc. stock has a Value Grade of B.
• The Bancorp, Inc. stock has a Value Grade of B.
• Webster Financial Corporation 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, June 05
• 7 Undervalued Banks Stocks for Wednesday, June 04
• Why KB Financial Group Inc.’s (KB) Stock Is Up 8.11%
• Why Orange County Bancorp, Inc.’s (OBT) Stock Is Down 6.23%

AAII Disclaimer

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