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 Tuesday, December 30, 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.

Bank7 Corp.’s Value Grade

Value Grade:

Bank7 Corp. operates as a bank holding company for Bank7 that provides banking and financial services to individual and corporate customers. It offers commercial deposit, commercial checking, money market, and other deposit accounts; and retail deposit services, such as certificates of deposit, money market accounts, checking accounts, negotiable order of withdrawal accounts, savings accounts, and automated teller machine access. The company also provides commercial real estate, hospitality, energy, and commercial and industrial lending services; and consumer lending services to individuals for personal and household purposes comprising residential real estate loans and mortgage banking services, personal lines of credit, loans for the purchase of automobiles, and other installment loans, as well as secured and unsecured term loans and home improvement loans. It operates through a network of full-service branches in Oklahoma, the Dallas/Fort Worth, Texas metropolitan area, and Kansas. The company was formerly known as Haines Financial Corp. Bank7 Corp. was founded in 1901 and is headquartered in Oklahoma City, 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.

Bank7 Corp. has a Value Score of 68, which is considered to be undervalued.

When you look at Bank7 Corp.’s price-to-sales ratio at 4.04 compared to the industry median at 3.20, this company has a higher price relative to revenue compared to its peers. This could make Bank7 Corp.’s stock less attractive for value investors.

Bank7 Corp.’s price-earnings ratio is 9.10 compared to the industry median at 12.60. This means it has a lower share price relative to earnings compared to its peers. This could make Bank7 Corp. 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. Bank7 Corp.’s shareholder yield is lower than its industry median ratio of 2.40%. 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. Bank7 Corp.’s price-to-book ratio is higher than its industry median ratio of 1.12. This could make Bank7 Corp. less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Bank7 Corp.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Bank7 Corp.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 15.00. This could make Bank7 Corp. more attractive because the lower P/FCF ratio indicates that Bank7 Corp. 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.

Farmers & Merchants Bancorp’s Value Grade

Value Grade:

Farmers & Merchants Bancorp operates as the bank holding company for Farmers & Merchants Bank of Central California that provides various banking services to businesses and individuals in the United States. The company offers deposit products, including checking, savings, money market, time certificates of deposit, and individual retirement accounts. It also provides a range of lending products, such as commercial, commercial and residential real estate, real estate construction, agribusiness, and consumer loans, as well as equipment leases and credit card services; commercial products, including term loans, lines of credit and other working capital financing, and letters of credit; and financing products, such as automobile financing, home improvement, and home equity lines of credit. In addition, the company provides specialized services that include credit card programs for merchants, lockbox and other collection services, account reconciliation, investment sweep, online account access, and electronic funds transfers through domestic and international wire and automated clearinghouse; online banking services; and investment products, such as mutual funds and annuities. Farmers & Merchants Bancorp was founded in 1916 and is headquartered in Lodi, 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.

Farmers & Merchants Bancorp has a Value Score of 86, which is considered to be undervalued.

Farmers & Merchants Bancorp’s price-earnings ratio is 8.5 compared to the industry median at 12.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Farmers & Merchants Bancorp more attractive for value investors.

Farmers & Merchants Bancorp’s price-to-book ratio is lower than its peers. This could make Farmers & Merchants Bancorp more attractive for value investors when compared to the industry median at 1.12.

You can read more about Farmers & Merchants 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.

F.N.B. Corporation’s Value Grade

Value Grade:

F.N.B. Corporation, a bank and financial holding company, provides a range of financial products and services primarily to consumers, corporations, governments, and small- to medium-sized businesses in the United States. The company operates through three segments: Community Banking, Wealth Management, and Insurance. The Community Banking segment offers commercial and consumer banking services, including corporate and small business banking, investment real estate financing, business credit, capital market, and lease financing services. It provides consumer banking products and services, such as deposit products, mortgage and consumer lending services, and mobile and online banking services. The Wealth Management segment provides personal and corporate fiduciary services comprising administration of decedent and trust estates; and securities brokerage and investment advisory services, mutual funds, and annuities. The Insurance segment comprises commercial and personal insurance, and reinsurance products, as well as mezzanine financing options for small- to medium-sized businesses. The company operates community banking branches in Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington, D.C., and Virginia. The company was founded in 1864 and is headquartered in Pittsburgh, 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.

F.N.B. Corporation has a Value Score of 68, which is considered to be undervalued.

F.N.B. Corporation’s price-earnings ratio is 12.5 compared to the industry median at 12.6. This means that it has a lower price relative to its earnings compared to its peers. This makes F.N.B. Corporation more attractive for value investors.

F.N.B. Corporation’s price-to-book ratio is higher than its peers. This could make F.N.B. Corporation less attractive for value investors when compared to the industry median at 1.12.

You can read more about F.N.B. 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 United Corporation’s Value Grade

Value Grade:

First United Corporation operates as the bank holding company for First United Bank & Trust that provides various retail and commercial banking services to businesses and individuals in the United States. It operates through Community Banking and Wealth Management segments. The company offers various deposit products, such as checking, savings, money market, individual retirement (IRA), employee benefit, and health savings accounts; regular and IRA certificates of deposit; demand deposits; business and personal loans; lines of credit; commercial loans secured by real estate, commercial equipment, vehicles or other assets of the borrower; residential mortgages; real estate construction loans to builders and individuals for single family dwellings; and indirect and direct auto loans, student loans, and other secured and unsecured lines of credit and term loans. It also provides brokerage; treasury management, cash sweep, and various checking opportunities; trust services, including personal trust, investment agency accounts, charitable trusts, and estate administration and estate planning, as well as retirement accounts including IRA roll-overs, 401(k) accounts, and defined benefit plans; and safe deposit and night depository facilities, and insurance products. First United Corporation was founded in 1900 and is headquartered in Oakland, Maryland.

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 United Corporation has a Value Score of 65, which is considered to be undervalued.

First United Corporation’s price-earnings ratio is 10.1 compared to the industry median at 12.6. This means that it has a lower price relative to its earnings compared to its peers. This makes First United Corporation more attractive for value investors.

First United Corporation’s price-to-book ratio is lower than its peers. This could make First United Corporation more attractive for value investors when compared to the industry median at 1.12.

You can read more about First United 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.

LINKBANCORP, Inc.’s Value Grade

Value Grade:

LINKBANCORP, Inc. operates as a bank holding company for LINKBANK that provides various banking products and services in Pennsylvania. Its deposit products include noninterest-bearing and interest-bearing demand, savings, and money market accounts; and time and brokered time deposits, as well as certificates of deposit. The company also offers commercial real estate, commercial business, construction and land development, residential real estate, home equity, consumer, agricultural, and municipal loans. In addition, the company provides online banking, mobile banking, direct and remote deposit, and cash management services. It serves individuals, families, nonprofits, municipalities, and business customers. LINKBANCORP, Inc. was founded in 1934 and is headquartered in Camp Hill, 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.

LINKBANCORP, Inc. has a Value Score of 84, which is considered to be undervalued.

LINKBANCORP, Inc.’s price-earnings ratio is 8.1 compared to the industry median at 12.6. This means that it has a lower price relative to its earnings compared to its peers. This makes LINKBANCORP, Inc. more attractive for value investors.

LINKBANCORP, Inc.’s price-to-book ratio is higher than its peers. This could make LINKBANCORP, Inc. less attractive for value investors when compared to the industry median at 1.12.

You can read more about LINKBANCORP, 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.

Virginia National Bankshares Corporation’s Value Grade

Value Grade:

Virginia National Bankshares Corporation operates as the holding company for Virginia National Bank that provides a range of commercial and retail banking products and services in Virginia. The company operates through Bank, VNB Trust and Estate Services, and Masonry Capital segments. It provides checking accounts, demand deposits, NOW accounts, money market deposit accounts, time deposits, certificates of deposit, individual retirement accounts, and other depository services. The company also offers commercial loans, real estate construction and land loans, commercial real estate loans, and 1-4 family residential mortgages, as well as consumer loans comprising student loans, revolving credit, and other fixed payment loans. In addition, it provides automated teller machine, internet banking, treasury, and cash management services; merchant and debit card services; and investment advisory and management services. Further, the company offers investment management, wealth management, corporate trustee, trust and estate administration, IRA administration, in-house investment management, and custody services. It serves individuals, businesses, and charitable organizations. The company was founded in 1998 and is headquartered in Charlottesville, Virginia.

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.

Virginia National Bankshares Corporation has a Value Score of 61, which is considered to be undervalued.

Virginia National Bankshares Corporation’s price-earnings ratio is 12.4 compared to the industry median at 12.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Virginia National Bankshares Corporation more attractive for value investors.

Virginia National Bankshares Corporation’s price-to-book ratio is lower than its peers. This could make Virginia National Bankshares Corporation more attractive for value investors when compared to the industry median at 1.12.

You can read more about Virginia National Bankshares 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 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.

• Bank7 Corp. stock has a Value Grade of B.
• Farmers & Merchants Bancorp stock has a Value Grade of A.
• F.N.B. Corporation stock has a Value Grade of B.
• First United Corporation stock has a Value Grade of B.
• LINKBANCORP, Inc. stock has a Value Grade of A.
• Virginia National Bankshares Corporation 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 Tuesday, December 30
• 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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