Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 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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6 Undervalued Banks Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 6 undervalued stocks in the Banks industry for Monday, September 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.

Avidbank Holdings, Inc.’s Value Grade

Value Grade:

Avidbank Holdings, Inc. operates as a bank holding company for Avidbank that provides financial solutions and services. The company offers business and personal deposit products, such as checking, money market, and savings accounts; and certificates of deposit. It also provides lending products, including working capital lines of credit, equipment loans, acquisition financing, shareholder buyouts, ESOP loans, and owner-occupied real estate loans; sponsor finance comprising acquisition term loans, recapitalization term loans, and working capital lines; and venture lending, such as venture debt, growth capital, recurring revenue, and treasury management services. In addition, the company offers commercial real estate lending consisting of permanent loans and bridge financing products; Asset-Based Lending that includes Borrowing Base and ABL tem loans; and construction lending products, including land acquisition loans, construction spec SFD, owner-occupied SFD, condominiums, subdivision, unsecured business lines, pre-development loans, real estate bridge loans, and RLOC – real estate secured loans. Further, the company provides private equity and venture capital financing solutions; structure finance; security and fraud prevention services; domestic and international wires, ACH origination, corporate credit cards, bill pay, trade finance letters of credit, and zero balance account; remote deposit capture, ACH collections, incoming wires, lockbox, and merchant services; and online banking real time fraud mitigation tools, check positive pay, and ACH positive pay. Additionally, it offers ATM/debit cards, credit cards, business courier, and complimentary notary services, as well as online and mobile banking services. The company was founded in 2003 and is headquartered in San Jose, 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.

Avidbank Holdings, Inc. has a Value Score of 75, which is considered to be undervalued.

When you look at Avidbank Holdings, Inc.’s price-to-sales ratio at 2.47 compared to the industry median at 3.12, this company has a lower price relative to revenue compared to its peers. This could make Avidbank Holdings, Inc.’s stock more attractive for value investors.

Avidbank Holdings, Inc.’s price-earnings ratio is 9.30 compared to the industry median at 12.40. This means it has a lower share price relative to earnings compared to its peers. This could make Avidbank Holdings, 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. Avidbank Holdings, Inc.’s shareholder yield is lower than its industry median ratio of 2.60%. 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. Avidbank Holdings, Inc.’s price-to-book ratio is lower than its industry median ratio of 1.09. This could make Avidbank Holdings, Inc. more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Avidbank Holdings, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Avidbank Holdings, Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 15.50. This could make Avidbank Holdings, Inc. more attractive because the lower P/FCF ratio indicates that Avidbank Holdings, 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.

Mechanics Bancorp’s Value Grade

Value Grade:

Mechanics Bancorp provides various financial services for communities in Greater San Francisco, Sacramento, Los Angeles, and San Diego areas and throughout the Central Valley in California. The company offers checking, savings, retirement, money market, and certificates of deposit accounts. It also provides home and auto loans; term loans and lines of credit, multi-family lending, commercial real estate loans, owner-occupied real estate loans, equipment financing, and trade services and letters of credit; small business administration loans; and credit and debit cards. In addition, the company offers payable and receivable solutions, fraud prevention, and cash management services; merchant and payroll services, paycheck protection program solutions, and workplace and employee benefit plans; cashier’s checks, wire transfers, overdraft protection, deposit and treasury, private banking, trust and estate, investment and asset management, retirement planning, and wealth management services, as well as services for registered investment advisors; money management services and digital wallets; and online and mobile banking services. Mechanics Bancorp was founded in 1905 and is based in Walnut Creek, 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.

Mechanics Bancorp has a Value Score of 67, which is considered to be undervalued.

Mechanics Bancorp’s price-earnings ratio is 15.6 compared to the industry median at 12.4. This means that it has a higher price relative to its earnings compared to its peers. This makes Mechanics Bancorp less attractive for value investors.

Mechanics Bancorp’s price-to-book ratio is lower than its peers. This could make Mechanics Bancorp more attractive for value investors when compared to the industry median at 1.09.

You can read more about Mechanics 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.

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 70, which is considered to be undervalued.

PCB Bancorp’s price-earnings ratio is 10.0 compared to the industry median at 12.4. 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 1.09.

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.

QCR Holdings, Inc.’s Value Grade

Value Grade:

QCR Holdings, Inc., a multi-bank holding company, provides commercial and consumer banking, and trust and asset management services. The company’s deposit products include noninterest-bearing demand, interest-bearing demand, time, and brokered deposits. It also provides various commercial and retail lending/leasing, and investment services to corporations, partnerships, individuals, and government agencies. The company’s loan portfolio comprises loans to small and mid-sized businesses; business loans, including lines of credit for working capital and operational purposes; term loans for the acquisition of facilities, equipment, and other purposes; commercial and residential real estate loans; and installment and other consumer loans, such as motor vehicle, home improvement, home equity, signature loans, and small personal credit lines. In addition, it engages in lending and leasing of machinery and equipment to commercial and industrial businesses under direct financing lease contracts and equipment financing agreements; and issuance of trust preferred securities. QCR Holdings, Inc. was incorporated in 1993 and is headquartered in Moline, 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.

QCR Holdings, Inc. has a Value Score of 69, which is considered to be undervalued.

QCR Holdings, Inc.’s price-earnings ratio is 11.6 compared to the industry median at 12.4. This means that it has a lower price relative to its earnings compared to its peers. This makes QCR Holdings, Inc. more attractive for value investors.

QCR Holdings, Inc.’s price-to-book ratio is lower than its peers. This could make QCR Holdings, Inc. more attractive for value investors when compared to the industry median at 1.09.

You can read more about QCR Holdings, 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.

Univest Financial Corporation’s Value Grade

Value Grade:

Univest Financial Corporation operates as the bank holding company for Univest Bank and Trust Co. that provides banking services in the United States. It operates through three segments: Banking, Wealth Management, and Insurance. The Banking segment offers financial services to individuals, businesses, municipalities, and non-profit organizations, including deposit taking, loan origination and servicing, mortgage banking, other general banking services, and equipment lease financing. The Wealth Management segment provides investment advisory, financial planning and trust, and brokerage services for private families and individuals, municipal pension plans, retirement plans, trusts, and guardianships. The Insurance segment offers full-service insurance brokerage agency comprising commercial property and casualty insurance, employee benefit solutions, personal insurance lines, and human resources consulting services. The company was formerly known as Univest Corporation of Pennsylvania and changed its name to Univest Financial Corporation in January 2019. Univest Financial Corporation was founded in 1876 and is headquartered in Souderton, 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.

Univest Financial Corporation has a Value Score of 83, which is considered to be undervalued.

Univest Financial Corporation’s price-earnings ratio is 11.3 compared to the industry median at 12.4. This means that it has a lower price relative to its earnings compared to its peers. This makes Univest Financial Corporation more attractive for value investors.

Univest Financial Corporation’s price-to-book ratio is higher than its peers. This could make Univest Financial Corporation less attractive for value investors when compared to the industry median at 1.09.

You can read more about Univest 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.

WaFd, Inc.’s Value Grade

Value Grade:

WaFd, Inc. operates as the bank holding company for Washington Federal Bank that provides lending, depository, insurance, and other banking services in the United States. The company provides deposit products, including business and personal checking accounts, and term certificates of deposit, as well as money market accounts and passbook savings accounts. It offers single-family dwellings, construction, land acquisition and development, consumer lot, multi-family residential, commercial real estate, home equity, business, and consumer loans, as well as commercial and industrial loans. In addition, the company offers insurance brokerage services, such as individual and business insurance policies; holds and markets real estate properties; and debit and credit cards, as well as acts as the trustee. It serves consumers, mid-sized and large businesses, and owners and developers of commercial real estate. The company was formerly known as Washington Federal, Inc. and changed its name to WaFd, Inc. in September 2023. WaFd, Inc. was founded in 1917 and is headquartered in Seattle, Washington.

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.

WaFd, Inc. has a Value Score of 77, which is considered to be undervalued.

WaFd, Inc.’s price-earnings ratio is 11.9 compared to the industry median at 12.4. This means that it has a lower price relative to its earnings compared to its peers. This makes WaFd, Inc. more attractive for value investors.

WaFd, Inc.’s price-to-book ratio is higher than its peers. This could make WaFd, Inc. less attractive for value investors when compared to the industry median at 1.09.

You can read more about WaFd, 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 6 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.

• Avidbank Holdings, Inc. stock has a Value Grade of B.
• Mechanics Bancorp stock has a Value Grade of B.
• PCB Bancorp stock has a Value Grade of B.
• QCR Holdings, Inc. stock has a Value Grade of B.
• Univest Financial Corporation stock has a Value Grade of A.
• WaFd, Inc. stock has a Value Grade of B.

Now that you have a bit more background about each of the 6 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.

• 6 Undervalued Banks Stocks for Monday, September 15
• 4 Undervalued Banks Stocks for Friday, September 12
• Why Banco BBVA Argentina S.A.’s (BBAR) Stock Is Down 5.63%
• Why Banco Macro S.A.’s (BMA) Stock Is Down 5.72%

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