Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 5 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.

5 Undervalued Banks Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 5 undervalued stocks in the Banks industry for Thursday, October 09, 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.

Civista Bancshares, Inc.’s Value Grade

Value Grade:

Civista Bancshares, Inc. operates as the financial holding company for Civista Bank that provides community banking services in the United States. The company offers personal and commercial checking accounts; retirement, money market, time, and savings accounts; safe deposit boxes; wire transfers; automated teller services; internet banking; ACH origination; telephone banking; and mobile/digital banking services, as well as remote deposit capture banking services for retail and business customers. It also provides time deposits that consist of certificates of deposit, including those held in IRA accounts and reciprocal deposits. Its loan portfolio includes commercial and agriculture; commercial real estate – owner and non-owner occupied; residential and farm real estate; real estate construction; lease financing receivable; consumer; and other loans, as well as home equity line of credit. In addition, the company holds and manages securities portfolio; leases general equipment; and provides captive insurance products. It operates in North Central, West Central, South Western Ohio, South Eastern Indiana, and Northern Kentucky. The company was formerly known as First Citizens Banc Corp and changed its name to Civista Bancshares, Inc. in May 2015. Civista Bancshares, Inc. was founded in 1884 and is headquartered in Sandusky, 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.

Civista Bancshares, Inc. has a Value Score of 89, which is considered to be undervalued.

When you look at Civista Bancshares, Inc.’s price-to-sales ratio at 2.02 compared to the industry median at 3.09, this company has a lower price relative to revenue compared to its peers. This could make Civista Bancshares, Inc.’s stock more attractive for value investors.

Civista Bancshares, Inc.’s price-earnings ratio is 8.20 compared to the industry median at 12.20. This means it has a lower share price relative to earnings compared to its peers. This could make Civista Bancshares, 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. Civista Bancshares, 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. Civista Bancshares, Inc.’s price-to-book ratio is lower than its industry median ratio of 1.07. This could make Civista Bancshares, Inc. more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Civista Bancshares, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Civista Bancshares, Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 15.35. This could make Civista Bancshares, Inc. more attractive because the lower P/FCF ratio indicates that Civista Bancshares, 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.

Columbia Banking System, Inc.’s Value Grade

Value Grade:

Columbia Banking System, Inc. operates as the Bank holding company of Columbia Bank that provides banking, private banking, mortgage, and other financial services in the United States. The company offers deposit products, including business, non-interest-bearing checking, interest-bearing checking and savings, and money market; and insured cash sweep and other investment sweep solutions. It also provides commercial lending products, such as commercial lines of credit and term loans, accounts receivable and inventory financing, international trade finance, commercial property loans, multifamily loans, equipment loans, commercial equipment leases, and real estate construction loans; and permanent financing and small business administration program financing, as well as capital markets. In addition, the company offers wealth management comprising financial planning, investment, trust, and insurance; and treasury management, which includes digital and mobile banking solutions, ACH, wires, positive pay, remote deposit capture, integrated payments, integrated receivables, lockbox, cash vault, real-time payments, commercial card, and foreign exchange and international banking related products, as well as merchant services. Further, it provides residential real estate loans and consumer loans. It serves its products to corporate, institutional, small business, and individual customers. The company was founded in 1953 and is based in Tacoma, 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.

Columbia Banking System, Inc. has a Value Score of 74, which is considered to be undervalued.

Columbia Banking System, Inc.’s price-earnings ratio is 10.2 compared to the industry median at 12.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Columbia Banking System, Inc. more attractive for value investors.

Columbia Banking System, Inc.’s price-to-book ratio is higher than its peers. This could make Columbia Banking System, Inc. less attractive for value investors when compared to the industry median at 1.07.

You can read more about Columbia Banking System, 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.

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 69, which is considered to be undervalued.

Customers Bancorp, Inc.’s price-earnings ratio is 15.9 compared to the industry median at 12.2. 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 lower than its peers. This could make Customers Bancorp, Inc. fairly attractive for value investors when compared to the industry median at 1.07.

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.

Citizens Financial Services, Inc.’s Value Grade

Value Grade:

Citizens Financial Services, Inc., a bank holding company, provides various banking products and services for individual, business, governmental, and institutional customers. The company offers various deposit products, such as checking, savings, and time deposit accounts. Its loan products include residential, commercial, and agricultural real estate loans; commercial and industrial loans; state and political subdivision loans; and consumer loans, as well as various other specialized financial services. The company also provides professional trust administration, investment management services, estate planning and administration, custody of securities, and individual retirement accounts. In addition, it offers brokerage and financial planning services, as well as assistance in various oil and gas leasing matters; and provides mutual funds, annuities, and health and life insurance products. Citizens Financial Services, Inc. was incorporated in 1984 and is headquartered in Mansfield, 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.

Citizens Financial Services, Inc. has a Value Score of 85, which is considered to be undervalued.

Citizens Financial Services, Inc.’s price-earnings ratio is 8.7 compared to the industry median at 12.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Citizens Financial Services, Inc. more attractive for value investors.

Citizens Financial Services, Inc.’s price-to-book ratio is higher than its peers. This could make Citizens Financial Services, Inc. less attractive for value investors when compared to the industry median at 1.07.

You can read more about Citizens Financial Services, 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.

Horizon Bancorp, Inc.’s Value Grade

Value Grade:

Horizon Bancorp, Inc. operates as the bank holding company for Horizon Bank that engages in the provision of commercial and retail banking services. The company offers checking, saving, money market, certificate of deposits, and time deposits, as well as non-interest- and interest-bearing demand deposits. It also provides commercial, residential real estate, mortgage warehouse Loans, consumer loans, land and home equity, auto, and agriculture loans. In addition, the company offers corporate and individual trust and agency, investment management, and real estate investment trust services; debit and credit cards; treasury management; trust and wealth management services; retirement plans; and sells various insurance products. It operates through full-service offices in northern and central Indiana and southern and central Michigan. Horizon Bancorp, Inc. was founded in 1873 and is headquartered in Michigan City, 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.

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

Horizon Bancorp, Inc.’s price-earnings ratio is 13.8 compared to the industry median at 12.2. This means that it has a higher price relative to its earnings compared to its peers. This makes Horizon Bancorp, Inc. less attractive for value investors.

Horizon Bancorp, Inc.’s price-to-book ratio is higher than its peers. This could make Horizon Bancorp, Inc. less attractive for value investors when compared to the industry median at 1.07.

You can read more about Horizon 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 5 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.

• Civista Bancshares, Inc. stock has a Value Grade of A.
• Columbia Banking System, Inc. stock has a Value Grade of B.
• Customers Bancorp, Inc. stock has a Value Grade of B.
• Citizens Financial Services, Inc. stock has a Value Grade of A.
• Horizon Bancorp, Inc. stock has a Value Grade of B.

Now that you have a bit more background about each of the 5 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.

• 5 Undervalued Banks Stocks for Thursday, October 09
• Is Bank of America Corporation (BAC) Overvalued?
• Is HDFC Bank Limited (HDB) Overvalued?
• Is HSBC Holdings plc (HSBC) Overvalued?

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.