Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 4 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.

Click the button below to learn more about A+ Investor and subscribe today.

4 Undervalued Banks Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 4 undervalued stocks in the Banks industry for Thursday, June 19, 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.

American Business Bank’s Value Grade

Value Grade:

American Business Bank, a California-chartered bank, provides banking products and services to small and medium-sized firms, non-profits, business executives, and professionals in Southern California. The company offers credit and depository; treasury management; asset-based lending; SBA lending; international banking comprising money transfer, import and export commercial letters of credit, standby letters of credit, and foreign currency exchange services; and consulting and referral services. It operates regional loan production offices located in North Orange County, Orange County, South Bay, San Fernando Valley, Riverside County, Inland Empire, Long Beach, and San Diego. The company was incorporated in 1998 and is based 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.

American Business Bank has a Value Score of 73, which is considered to be undervalued.

When you look at American Business Bank’s price-to-sales ratio at 2.92 compared to the industry median at 2.83, this company has a higher price relative to revenue compared to its peers. This could make American Business Bank’s stock less attractive for value investors.

American Business Bank’s price-earnings ratio is 8.90 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 American Business Bank 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. American Business Bank’s shareholder yield is lower than its industry median ratio of 3.00%. 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. American Business Bank’s price-to-book ratio is higher than its industry median ratio of 0.97. This could make American Business Bank less attractive to investors looking for a new addition to their portfolio.

Fidelity D & D Bancorp, Inc.’s Value Grade

Value Grade:

Fidelity D & D Bancorp, Inc. operates as the bank holding company for The Fidelity Deposit and Discount Bank that provides a range of banking, trust, and financial services to individuals, small businesses, and corporate customers. The company accepts savings, club, interest-bearing and non-interest-bearing checking, money market, and short- and long-term time deposits, as well as certificates of deposit. It also offers commercial and industrial, commercial real estate, consumer, and residential mortgage loans. In addition, the company provides government and healthcare banking services, cash management and merchant services, individual retirement accounts, and credit and debit cards; and alternative financial and insurance products with asset management services, as well as online banking, telephone banking, and digital wallet. The company was founded in 1902 and is headquartered in Dunmore, 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.

Fidelity D & D Bancorp, Inc. has a Value Score of 75, which is considered to be undervalued.

Fidelity D & D Bancorp, Inc.’s price-earnings ratio is 11.1 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 Fidelity D & D Bancorp, Inc. more attractive for value investors.

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

You can read more about Fidelity D & D 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.

Pacific Premier Bancorp, Inc.’s Value Grade

Value Grade:

Pacific Premier Bancorp, Inc. operates as the bank holding company for Pacific Premier Bank that provides various banking products and services in the United States. The company accepts deposit products, which includes checking, money market, savings accounts, and certificates of deposit. Its loan portfolio includes commercial real estate owner and non-owner-occupied, multifamily, construction and land, franchise secured by real estate, and small business administration (SBA); revolving lines of credit, term loans, seasonal loans, and loans secured by liquid collateral, such as cash deposits or marketable securities; one-to-four family and home equity lines of credit loans; and small balance personal unsecured loans and savings account secured loans. It also offers cash management, online and mobile banking, and treasury management services, as well as payment processing, remote capture, and automated clearing house payment capabilities. In addition, it operates as a custodian for alternative assets held in qualified self-directed IRA accounts, including investments in private equity, real estate, notes, cash, and other non-exchange traded assets; and provides real-property and non-real property escrow services. The company serves small and middle-market businesses, corporations, professionals, real estate investors, non-profit organizations, and consumers. The company was founded in 1983 and is headquartered in Irvine, 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.

Pacific Premier Bancorp, Inc. has a Value Score of 67, which is considered to be undervalued.

Pacific Premier Bancorp, Inc.’s price-earnings ratio is 13.3 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 Pacific Premier Bancorp, Inc. less attractive for value investors.

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

You can read more about Pacific Premier 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 66, which is considered to be undervalued.

The Bancorp, Inc.’s price-earnings ratio is 11.5 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.

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 4 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.

• American Business Bank stock has a Value Grade of B.
• Fidelity D & D Bancorp, Inc. stock has a Value Grade of B.
• Pacific Premier Bancorp, Inc. stock has a Value Grade of B.
• The Bancorp, Inc. stock has a Value Grade of B.

Now that you have a bit more background about each of the 4 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.

• 4 Undervalued Banks Stocks for Thursday, June 19
• Is 1st Source Corporation(SRCE) Building Momentum?
• Is Civista Bancshares, Inc.(CIVB) Building Momentum?
• Is F.N.B. Corporation(FNB) Building Momentum?

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.