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 Wednesday, November 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.

Cathay General Bancorp’s Value Grade

Value Grade:

Cathay General Bancorp operates as the holding company for Cathay Bank that offers various commercial banking products and services to individuals, professionals, and small to medium-sized businesses in the United States. It offers savings accounts, checking accounts, money market deposit accounts, certificates of deposit, individual retirement accounts, and public funds deposits, and acceptance of checking, savings, and time deposits. The company also provides loan products, such as commercial loans, small business administration loans, residential mortgage loans, real estate construction loans, and home equity lines of credit, and installment loans to individuals for household and other consumer expenditures. In addition, it offers trade financing, letter of credit, wire transfer, forward currency spot and forward contract, safe deposit, collection, automatic teller machine, Internet banking, investment, and other customary bank services, as well as investment products and services, such as stocks, bonds, mutual funds, insurance, annuities, and advisory services. Cathay General Bancorp was founded in 1962 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.

Cathay General Bancorp has a Value Score of 78, which is considered to be undervalued.

When you look at Cathay General Bancorp’s price-to-sales ratio at 4.51 compared to the industry median at 2.94, this company has a higher price relative to revenue compared to its peers. This could make Cathay General Bancorp’s stock less attractive for value investors.

Cathay General Bancorp’s price-earnings ratio is 10.50 compared to the industry median at 11.60. This means it has a lower share price relative to earnings compared to its peers. This could make Cathay General Bancorp 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. Cathay General Bancorp’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. Cathay General Bancorp’s price-to-book ratio is higher than its industry median ratio of 1.05. This could make Cathay General Bancorp less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Cathay General Bancorp’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Cathay General Bancorp’s price-to-free-cash-flow ratio is lower than its industry median ratio of 14.30. This could make Cathay General Bancorp more attractive because the lower P/FCF ratio indicates that Cathay General Bancorp 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.

Hancock Whitney Corporation’s Value Grade

Value Grade:

Hancock Whitney Corporation operates as the financial holding company for Hancock Whitney Bank that provides traditional and online banking services to commercial, small business, and retail customers in the United States. It offers various transaction and savings deposit products, such as brokered deposits, time deposits, and money market accounts; treasury management services; secured and unsecured loan products; letters of credit and similar financial guarantees; trust and investment management services to retirement plans, corporations, and individuals; and investment advisory and brokerage products. The company also provides commercial and industrial loans, including real and non-real estate loans; commercial real estate loans; construction and land development loans; and residential mortgages, as well as consumer loans. In addition, it offers commercial finance products to middle market and corporate clients comprising leases and related structures; invests in new market tax credit activities and holds certain foreclosed assets; provides customers access to fixed annuity and life insurance products, investment management and advisory, and other services; and underwrites transactions primarily for banking clients, as well as debt and mortgage-related securities. The company was founded in 1899 and is headquartered in Gulfport, Mississippi.

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.

Hancock Whitney Corporation has a Value Score of 78, which is considered to be undervalued.

Hancock Whitney Corporation’s price-earnings ratio is 10.2 compared to the industry median at 11.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Hancock Whitney Corporation more attractive for value investors.

Hancock Whitney Corporation’s price-to-book ratio is lower than its peers. This could make Hancock Whitney Corporation fairly attractive for value investors when compared to the industry median at 1.05.

You can read more about Hancock Whitney 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.

Metropolitan Bank Holding Corp.’s Value Grade

Value Grade:

Metropolitan Bank Holding Corp. operates as the bank holding company for Metropolitan Commercial Bank that provides a range of business, commercial, and retail banking products and services. The company offers checking, savings, term deposit, money market, non-interest-bearing demand deposit, and other time deposits. It also provides lending products, including commercial real estate; multi-family; construction; one-to four-family real estate loans; commercial and industrial loans; consumer loans, including purchased student loans; acquisition and renovation loans; loans to refinance or return borrower equity; loans on owner-occupied properties; working capital lines of credit; trade finance; letters of credit; and term loans. In addition, the company offers cash management services, as well as online and mobile banking, ACH, remote deposit capture, and debit cards products, as well as merchant services. It serves small businesses, middle-market enterprises, public entities, and individuals. The company was formerly known as Metbank Holding Corp. and changed its name to Metropolitan Bank Holding Corp. in January 2007. Metropolitan Bank Holding Corp. was incorporated in 1997 and is headquartered in New York, New York.

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.

Metropolitan Bank Holding Corp. has a Value Score of 88, which is considered to be undervalued.

Metropolitan Bank Holding Corp.’s price-earnings ratio is 11.9 compared to the industry median at 11.6. This means that it has a higher price relative to its earnings compared to its peers. This makes Metropolitan Bank Holding Corp. less attractive for value investors.

Metropolitan Bank Holding Corp.’s price-to-book ratio is higher than its peers. This could make Metropolitan Bank Holding Corp. less attractive for value investors when compared to the industry median at 1.05.

You can read more about Metropolitan Bank Holding Corp.’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 79, which is considered to be undervalued.

First Financial Corporation’s price-earnings ratio is 8.8 compared to the industry median at 11.6. 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 fairly attractive for value investors when compared to the industry median at 1.05.

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.

Tompkins Financial Corporation’s Value Grade

Value Grade:

Tompkins Financial Corporation, a financial holding company, provides commercial and consumer banking, leasing, trust and investment management, financial planning and wealth management, and insurance services. The company operates through three segments: Banking, Insurance, and Wealth Management. It accepts various deposit products, including checking and savings accounts, time deposits, and IRA products. The company also offers loans for various business purposes, including real estate financing, construction, equipment financing, accounts receivable financing, and commercial leasing; residential mortgage loans; personal loans; home equity loans; residential real estate loans; commercial and industrial loans; commercial real estate loans; agriculture loans; and consumer and other loans, such as direct and indirect personal installment loans, automobile financing, and overdraft lines of credit. In addition, it provides letters of credit and sweep accounts; credit and debit cards; deposit and cash management, internet-based account, remote deposit, safe deposit, ATM, voice response, and mobile and internet banking services; trust and estate; financial and tax planning services; property and casualty, life, disability, and long-term care insurance services; employee benefit consulting services; and insurance planning services. The company primarily serves individuals, corporate executives, small business owners, and high net worth individuals. Tompkins Financial Corporation was founded in 1836 and is headquartered in Ithaca, New York.

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.

Tompkins Financial Corporation has a Value Score of 70, which is considered to be undervalued.

Tompkins Financial Corporation’s price-earnings ratio is 11.0 compared to the industry median at 11.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Tompkins Financial Corporation more attractive for value investors.

Tompkins Financial Corporation’s price-to-book ratio is lower than its peers. This could make Tompkins Financial Corporation more attractive for value investors when compared to the industry median at 1.05.

You can read more about Tompkins 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.

Timberland Bancorp, Inc.’s Value Grade

Value Grade:

Timberland Bancorp, Inc. operates as the bank holding company for Timberland Bank that provides various community banking services in Washington. It offers various deposit products, including money market deposit, checking, and regular savings accounts, as well as certificates of deposit. The company also provides one-to four-family residential, multi-family, commercial real estate loans, and land loans; and construction lending products, such as custom and owner/builder, speculative one- to four-family, commercial, multi-family, and land development. In addition, it offers consumer loans comprising home equity lines of credit and second mortgage loans, automobile loans, boat loans, motorcycle loans, recreational vehicle loans, savings account loans, and unsecured loans; and commercial business loans. The company was founded in 1915 and is headquartered in Hoquiam, 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.

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

Timberland Bancorp, Inc.’s price-earnings ratio is 9.6 compared to the industry median at 11.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Timberland Bancorp, Inc. more attractive for value investors.

Timberland Bancorp, Inc.’s price-to-book ratio is higher than its peers. This could make Timberland Bancorp, Inc. less attractive for value investors when compared to the industry median at 1.05.

You can read more about Timberland 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 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.

• Cathay General Bancorp stock has a Value Grade of B.
• Hancock Whitney Corporation stock has a Value Grade of B.
• Metropolitan Bank Holding Corp. stock has a Value Grade of A.
• First Financial Corporation stock has a Value Grade of B.
• Tompkins Financial Corporation stock has a Value Grade of B.
• Timberland Bancorp, 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.

• 3 Undervalued Banks Stocks for Wednesday, November 19
• Is Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) Overvalued?
• Is Banco Santander, S.A. (SAN) Overvalued?
• Is Bank of America Corporation (BAC) Overvalued?

AAII Disclaimer

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