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 Friday, August 15, 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.

BOK Financial Corporation’s Value Grade

Value Grade:

BOK Financial Corporation operates as the financial holding company for BOKF, NA that provides various financial products and services in Oklahoma, Texas, New Mexico, Northwest Arkansas, Colorado, Arizona, and Kansas/Missouri. It operates through three segments: Commercial Banking, Consumer Banking, and Wealth Management. The Commercial Banking segment offers lending, treasury, cash management, and customer commodity risk management products for small businesses, middle market, and larger commercial customers, as well as operates TransFund electronic funds transfer network. The Consumer Banking segment engages in the provision of retail lending and deposit services to small business customers through retail branch network; and mortgage loan origination and servicing activities. The Wealth Management segment offers fiduciary, private bank, insurance, and investment advisory services; and brokerage and trading services primarily related to providing liquidity to the mortgage markets through trading of U.S. government agency mortgage-backed securities and related derivative contracts, as well as underwrites state and municipal securities. The company also provides commercial loans, such as loans for working capital, facilities acquisition or expansion, purchases of equipment, and other needs of commercial customers; and service, healthcare, manufacturing, wholesale/retail, energy, and other sector loans. In addition, it offers commercial real estate loans for the construction of buildings or other improvements to real estate and property held by borrowers for investment purposes; residential mortgage and personal loans; and automated teller machine, call center, and internet and mobile banking services. The company was founded in 1910 and is headquartered in Tulsa, Oklahoma.

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.

BOK Financial Corporation has a Value Score of 72, which is considered to be undervalued.

When you look at BOK Financial Corporation’s price-to-sales ratio at 3.24 compared to the industry median at 2.97, this company has a higher price relative to revenue compared to its peers. This could make BOK Financial Corporation’s stock less attractive for value investors.

BOK Financial Corporation’s price-earnings ratio is 12.70 compared to the industry median at 11.90. This means it has a higher share price relative to earnings compared to its peers. This could make BOK Financial Corporation less 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. BOK Financial Corporation’s shareholder yield is higher than its industry median ratio of 2.70%. 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. BOK Financial Corporation’s price-to-book ratio is higher than its industry median ratio of 1.03. This could make BOK Financial Corporation less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at BOK Financial Corporation’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. BOK Financial Corporation’s price-to-free-cash-flow ratio is lower than its industry median ratio of 15.20. This could make BOK Financial Corporation more attractive because the lower P/FCF ratio indicates that BOK Financial Corporation 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. It operates through Regional Banking, Specialty Banking, and Corporate segments. The company offers commercial banking, business banking, consumer banking, and private client and wealth management business such as deposit, commercial, consumer & wealth investment, wealth management, financial planning, trust and asset management services. The Specialty Banking segment provides wholes banking services like fixed income/capital markets, professional commercial real estate, mortgage warehouse lending, asset-based lending, franchise finance, equipment finance, energy finance, healthcare finance, and trucking and transportation finance; as well as treasury management solutions, loan syndications, and international banking. In addition, the company offers corporate and correspondent banking services. Further, it provides transaction processing services including check clearing services and remittance processing, credit card products, 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 66, which is considered to be undervalued.

First Horizon Corporation’s price-earnings ratio is 14.4 compared to the industry median at 11.9. 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 1.03.

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.

HarborOne Bancorp, Inc.’s Value Grade

Value Grade:

HarborOne Bancorp, Inc. provides financial services to individuals, families, small and mid-size businesses, and municipalities. The company operates in two segments, HarborOne Bank and HarborOne Mortgage. It offers deposit products that include checking, NOW, money market, savings, and sweep accounts, and term certificate of deposit accounts; and lending products comprise commercial real estate, commercial and Industrial, commercial construction, residential mortgages, home equity, and auto loans and personal lines of credit. The company also provides various educational services, such as free digital content, webinars, and recordings for small business and personal financial education under the HarborOne U name. The company operates through service branches and commercial lending offices in each of Boston, Massachusetts and Providence, and Rhode Island, as well as administrative office in Brockton and ATM locations in Massachusetts. HarborOne Bancorp, Inc. was founded in 1917 and is headquartered in Brockton, Massachusetts.

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.

HarborOne Bancorp, Inc. has a Value Score of 72, which is considered to be undervalued.

HarborOne Bancorp, Inc.’s price-earnings ratio is 18.8 compared to the industry median at 11.9. This means that it has a higher price relative to its earnings compared to its peers. This makes HarborOne Bancorp, Inc. less attractive for value investors.

HarborOne Bancorp, Inc.’s price-to-book ratio is higher than its peers. This could make HarborOne Bancorp, Inc. less attractive for value investors when compared to the industry median at 1.03.

You can read more about HarborOne 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 financial 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 online, telephone, and mobile banking services. In addition, it provides various life, health, and property and casualty insurance products; third-party insurance administration; interactive teller machines; insurance premium financing; commercial and technology equipment leasing; fiduciary and trust; equipment financing agreements; and asset management and administration services, as well as employee benefit, retirement, and health care plan administration services. Further, the company offers brokerage services through an unaffiliated registered broker-dealer; and credit cards to individuals and businesses, as well as merchant credit card transaction processing, and person-to-person and business-to-business payment processing services. Peoples Bancorp Inc. was founded in 1902 and is based 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 89, which is considered to be undervalued.

Peoples Bancorp Inc.’s price-earnings ratio is 10.2 compared to the industry median at 11.9. 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 higher than its peers. This could make Peoples Bancorp Inc. less attractive for value investors when compared to the industry median at 1.03.

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.

Plumas Bancorp’s Value Grade

Value Grade:

Plumas Bancorp operates as the bank holding company for the Plumas Bank that provides various banking products and services for small and middle market businesses and individuals in California, Nevada, and Oregon. The company accepts various deposits, such as checking, money market checking, business sweep, public funds sweep, savings, and retirement accounts, and time and remote deposits. Its loan portfolio comprises term real estate, commercial, and industrial term loans; government-guaranteed and agricultural loans, as well as credit lines; consumer and home equity loans; land development and construction loans; and small business administration loans. In addition, the company provides telephone and mobile banking, internet banking with bill-pay options, cashier’s check, bank-by-mail, automated teller machine, night depository, safe deposit box, direct deposit, electronic funds transfer, and other customary banking services. Plumas Bancorp was founded in 1980 and is headquartered in Reno, Nevada.

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.

Plumas Bancorp has a Value Score of 74, which is considered to be undervalued.

Plumas Bancorp’s price-earnings ratio is 8.6 compared to the industry median at 11.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Plumas Bancorp more attractive for value investors.

Plumas Bancorp’s price-to-book ratio is lower than its peers. This could make Plumas Bancorp more attractive for value investors when compared to the industry median at 1.03.

You can read more about Plumas 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 83, which is considered to be undervalued.

River Financial Corporation’s price-earnings ratio is 7.0 compared to the industry median at 11.9. 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 1.03.

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.

Western Alliance Bancorporation’s Value Grade

Value Grade:

Western Alliance Bancorporation operates as the bank holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada. It operates through Commercial and Consumer Related segments. The company offers deposit products, including checking, savings, and money market accounts, as well as fixed-rate and fixed maturity certificates of deposit accounts; demand deposits; and treasury management and residential mortgage products and services. It also provides commercial and industrial loan products, such as working capital lines of credit, loans to technology companies, inventory and accounts receivable lines, mortgage warehouse lines, equipment loans and leases, and other commercial loans; commercial real estate loans, which are secured by multi-family residential properties, professional offices, industrial facilities, retail centers, hotels, and other commercial properties; construction and land development loans for single family and multi-family residential projects, industrial/warehouse properties, office buildings, retail centers, medical office facilities, and residential lot developments; and consumer loans. In addition, the company offers other financial services, such as internet banking, wire transfers, electronic bill payment and presentment, funds transfer and other digital payment offerings, lock box services, courier, and cash management services. Further, the company holds certain investment securities, municipal and non-profit loans, and leases; invests primarily in low-income housing tax credits and small business investment corporations; and certain real estate loans and related securities. Western Alliance Bancorporation was founded in 1994 and is headquartered in Phoenix, Arizona.

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.

Western Alliance Bancorporation has a Value Score of 65, which is considered to be undervalued.

Western Alliance Bancorporation’s price-earnings ratio is 11.0 compared to the industry median at 11.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Western Alliance Bancorporation more attractive for value investors.

Western Alliance Bancorporation’s price-to-book ratio is lower than its peers. This could make Western Alliance Bancorporation more attractive for value investors when compared to the industry median at 1.03.

You can read more about Western Alliance Bancorporation’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.

• BOK Financial Corporation stock has a Value Grade of B.
• First Horizon Corporation stock has a Value Grade of B.
• HarborOne Bancorp, Inc. stock has a Value Grade of B.
• Peoples Bancorp Inc. stock has a Value Grade of A.
• Plumas Bancorp stock has a Value Grade of B.
• River Financial Corporation stock has a Value Grade of A.
• Western Alliance Bancorporation 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 Friday, August 15
• Is FVCBankcorp, Inc. (FVCB) a Good Dividend Stock?
• Which Is a Better Investment, First Bancorp or Hilltop Holdings Inc. Stock?
• Which Is a Better Investment, First Bancorp or NBT Bancorp Inc. Stock?

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.