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 Monday, August 18, 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.

Bank of Montreal’s Value Grade

Value Grade:

Bank of Montreal provides diversified financial services primarily in North America. It operates through Canadian P&C;, U.S P&C;, BMO Wealth Management, and BMO Capital Markets segments. The company’s personal banking products and services include deposits, mortgages, home lending, consumer credit, small business lending, credit cards, cash management, financial and investment advice, and other banking services; and commercial banking products and services comprise various of financing options and treasury and payment solutions, as well as risk management products. It also offers investing, banking, and wealth management advisory; digital investing services; financial solutions for individuals, families, and businesses; provides investment management services to institutional, retail, and high net worth investors; and diversified insurance, and wealth and pension de-risking solutions. In addition, the company provides individual life, critical illness and annuity products, as well as segregated funds, and group creditor and travel insurance to customers; debt and equity capital-raising, loan origination and syndication, balance sheet management, treasury management, mergers and acquisitions advice, restructurings and recapitalizations, trade finance, and risk mitigation services, as well as a range of banking and other operating services. Further, the company offers research and access to financial markets for institutional, corporate and retail clients through an integrated suite of sales and trading solutions related to debt, foreign exchange, interest rates, credit, equities, securitization, and commodities; provides new product development and origination services, as well as risk management and advisory services for hedging strategies, including in interest rates, foreign exchange rates and commodities prices; and funding and liquidity management services. Bank of Montreal was founded in 1817 and is headquartered in Montreal, Canada.

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.

Bank of Montreal has a Value Score of 72, which is considered to be undervalued.

When you look at Bank of Montreal’s price-to-sales ratio at 2.70 compared to the industry median at 2.93, this company has a lower price relative to revenue compared to its peers. This could make Bank of Montreal’s stock more attractive for value investors.

Bank of Montreal’s price-earnings ratio is 14.60 compared to the industry median at 11.80. This means it has a higher share price relative to earnings compared to its peers. This could make Bank of Montreal 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. Bank of Montreal’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. Bank of Montreal’s price-to-book ratio is higher than its industry median ratio of 1.02. This could make Bank of Montreal less attractive to investors looking for a new addition to their portfolio.

FFB Bancorp’s Value Grade

Value Grade:

FFB Bancorp operates as a bank holding company for FFB Bank that provides various banking products and services for individuals and small and middle-market businesses in the United States. The company offers checking and savings accounts, money market accounts, certificates of deposit, and individual retirement accounts. It also provides residential real estate loans, commercial loans, small business loans, commercial real estate and construction loans, agricultural loans and lines of credit, farmer mac loans, and equipment leasing services. In addition, the company offers debit and credit cards; and online and mobile banking, online bill pay, cash management, remote deposit capture, and merchant services; and permanent and FFBridge multifamily financing, and broker resources, as well as business manager solutions. FFB Bancorp was formerly known as Communities First Financial Corporation and changed its name to FFB Bancorp in May 2023. The company was founded in 2005 and is based in Fresno, 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.

FFB Bancorp has a Value Score of 77, which is considered to be undervalued.

FFB Bancorp’s price-earnings ratio is 7.6 compared to the industry median at 11.8. This means that it has a lower price relative to its earnings compared to its peers. This makes FFB Bancorp more attractive for value investors.

FFB Bancorp’s price-to-book ratio is lower than its peers. This could make FFB Bancorp more attractive for value investors when compared to the industry median at 1.02.

You can read more about FFB 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.

First Mid Bancshares, Inc.’s Value Grade

Value Grade:

First Mid Bancshares, Inc., a financial holding company, provides community banking products and services to commercial, retail, and agricultural customers in the United States. It accepts various deposit products, such as demand deposits, savings accounts, money market deposits, and time deposits. The company’s loan products include commercial real estate, commercial and industrial, agricultural and agricultural real estate, residential real estate owner and non-owner occupied, and consumer loans, as well as construction and land development, 1-4 family residential properties, and multifamily residential properties loans; and other loans comprising loans to municipalities to support community projects, such as infrastructure improvements or equipment purchases. It also offers wealth management services, which include estate planning and investment services to individuals; employee benefit services for businesses; and farm management and brokerage services. In addition, the company provides property and casualty, senior insurance products, and group medical insurance for businesses; and personal lines insurance to individuals. The company was formerly known as First Mid-Illinois Bancshares, Inc. and changed its name to First Mid Bancshares, Inc. in April 2019. First Mid Bancshares, Inc. was founded in 1865 and is headquartered in Mattoon, Illinois.

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 Mid Bancshares, Inc. has a Value Score of 81, which is considered to be undervalued.

First Mid Bancshares, Inc.’s price-earnings ratio is 10.7 compared to the industry median at 11.8. This means that it has a lower price relative to its earnings compared to its peers. This makes First Mid Bancshares, Inc. more attractive for value investors.

First Mid Bancshares, Inc.’s price-to-book ratio is lower than its peers. This could make First Mid Bancshares, Inc. fairly attractive for value investors when compared to the industry median at 1.02.

You can read more about First Mid Bancshares, 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.

First Merchants Corporation’s Value Grade

Value Grade:

First Merchants Corporation operates as the financial holding company for First Merchants Bank that provides commercial and consumer banking services. The company offers a range of financial services, including checking, savings, and deposit products; debit and credit cards; mortgages, home equity lending, vehicle loans, and personal loans; and local commercial lending, asset-based lending solutions, agricultural lending, commercial real estate solutions, debt capital markets, practice finance, public finance, small business administration lending, and sponsor finance services. It also provides personal and commercial wealth management services, trust services, retirement planning, brokerage, investment management, private banking, fiduciary estate, and financial planning services. The company operates banking locations in Indiana, Ohio, and Michigan counties. It offers its services through electronic and mobile delivery channels. First Merchants Corporation was founded in 1893 and is headquartered in Muncie, Indiana.

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 Merchants Corporation has a Value Score of 79, which is considered to be undervalued.

First Merchants Corporation’s price-earnings ratio is 10.1 compared to the industry median at 11.8. This means that it has a lower price relative to its earnings compared to its peers. This makes First Merchants Corporation more attractive for value investors.

First Merchants Corporation’s price-to-book ratio is lower than its peers. This could make First Merchants Corporation fairly attractive for value investors when compared to the industry median at 1.02.

You can read more about First Merchants 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 18.5 compared to the industry median at 11.8. 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 1.02.

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.

Simmons First National Corporation’s Value Grade

Value Grade:

Simmons First National Corporation operates as the bank holding company for Simmons Bank that provides banking and other financial products and services to individuals and businesses. The company offers checking, savings, time deposits, and corporate deposits; consumer, real estate, and commercial loans; agricultural finance, equipment, and small business administration lending; trust and fiduciary services; credit cards; investments; treasury management, agency, and custodial services; and insurance products. It also provides ATM services; lines of credit; internet and mobile banking platforms; overdraft facilities; and safe deposit boxes. The company has operations in Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas. Simmons First National Corporation was founded in 1903 and is headquartered in Pine Bluff, Arkansas.

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.

Simmons First National Corporation has a Value Score of 77, which is considered to be undervalued.

Simmons First National Corporation’s price-earnings ratio is 15.6 compared to the industry median at 11.8. This means that it has a higher price relative to its earnings compared to its peers. This makes Simmons First National Corporation less attractive for value investors.

Simmons First National Corporation’s price-to-book ratio is higher than its peers. This could make Simmons First National Corporation less attractive for value investors when compared to the industry median at 1.02.

You can read more about Simmons First National 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.

First Financial Corporation’s Value Grade

Value Grade:

First Financial Corporation, through its subsidiaries, provides various financial products and services in west-central Indiana, east-central Illinois, western Kentucky, central and eastern Tennessee, and northern Georgia. It offers non-interest-bearing demand, interest-bearing demand, savings, time, and other time deposits. The company also provides commercial loans primarily to expand a business or finance asset purchases; residential real estate and residential real estate construction loans; and home equity loans and lines, secured loans, and cash/CD secured and unsecured loans. In addition, it offers lease financing, trust account, depositor, investment, and insurance services. The company was founded in 1834 and is headquartered in Terre Haute, Indiana.

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

First Financial Corporation’s price-earnings ratio is 10.5 compared to the industry median at 11.8. This means that it has a lower price relative to its earnings compared to its peers. This makes First Financial Corporation more attractive for value investors.

First Financial Corporation’s price-to-book ratio is lower than its peers. This could make First Financial Corporation more attractive for value investors when compared to the industry median at 1.02.

You can read more about First 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.

• Bank of Montreal stock has a Value Grade of B.
• FFB Bancorp stock has a Value Grade of B.
• First Mid Bancshares, Inc. stock has a Value Grade of A.
• First Merchants Corporation stock has a Value Grade of B.
• HarborOne Bancorp, Inc. stock has a Value Grade of B.
• Simmons First National Corporation stock has a Value Grade of B.
• First 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 Monday, August 18
• 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?

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.