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 Tuesday, March 31, 2026. 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.

BOK Financial Corporation’s Value Grade

Value Grade:

BOK Financial Corporation operates as the financial holding company for BOKF, NA that provides various financial products and services in Oklahoma, Texas, New Mexico, Northwest Arkansas, Colorado, Arizona, and Kansas/Missouri. It operates through three segments: Commercial Banking, Consumer Banking, and Wealth Management. The Commercial Banking segment offers lending, treasury, cash management, and customer commodity risk management products for small businesses, middle market, and larger commercial customers, as well as operates TransFund electronic funds transfer network. The Consumer Banking segment engages in the provision of retail lending and deposit services to small business customers through retail branch network; and mortgage loan origination and servicing activities. The Wealth Management segment offers fiduciary, private bank, insurance, and investment advisory services; and brokerage and trading services primarily related to providing liquidity to the mortgage markets through trading of U.S. government agency mortgage-backed securities and related derivative contracts, as well as underwrites state and municipal securities. The company also provides commercial loans, such as loans for working capital, facilities acquisition or expansion, purchases of equipment, and other needs of commercial customers; and service, healthcare, energy, and other sector loans. In addition, it offers commercial real estate loans for the construction of buildings or other improvements to real estate and property held by borrowers for investment purposes; residential mortgage and personal loans; and personal and small business checking, online bill paying, mobile banking, automated teller machine, and call centers services. The company was founded in 1910 and is headquartered in Tulsa, 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.

BOK Financial Corporation has a Value Score of 64, which is considered to be undervalued.

When you look at BOK Financial Corporation’s price-to-sales ratio at 3.58 compared to the industry median at 3.13, this company has a higher price relative to revenue compared to its peers. This could make BOK Financial Corporation’s stock less attractive for value investors.

BOK Financial Corporation’s price-earnings ratio is 13.70 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 BOK Financial Corporation 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. BOK Financial Corporation’s shareholder yield is higher 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. BOK Financial Corporation’s price-to-book ratio is higher than its industry median ratio of 1.11. This could make BOK Financial Corporation less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at BOK Financial Corporation’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. BOK Financial Corporation’s price-to-free-cash-flow ratio is higher than its industry median ratio of 15.40. This could make BOK Financial Corporation less attractive because the higher P/FCF ratio indicates that BOK Financial Corporation 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.

Cashmere Valley Bank’s Value Grade

Value Grade:

Cashmere Valley Bank, a state chartered bank, provides banking products and services to small and middle-market businesses, and retail customers. The company offers checking and savings accounts; personal, credit, home, and mortgages loans; home purchase, refinance, and construction loans; and commercial real estate, commercial, and small business administration loans, as well as operating lines of credit. It also provides credit cards; treasury online cash management; payment processing; and local municipalities services, including privately placed bonds and notes, municipal credit cards, and interim-financings in connection with rural development projects. In addition, the company offers personal and commercial lines of insurance, such as property, casualty, life, and health insurance products; wealth management; equipment financing; and mobile, telephone, and online banking services, as well as bill payment services. The company was incorporated in 1932 and is based in Cashmere, 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.

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

Cashmere Valley Bank’s price-earnings ratio is 10.0 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 Cashmere Valley Bank more attractive for value investors.

Cashmere Valley Bank’s price-to-book ratio is higher than its peers. This could make Cashmere Valley Bank less attractive for value investors when compared to the industry median at 1.11.

You can read more about Cashmere Valley Bank’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.

East West Bancorp, Inc.’s Value Grade

Value Grade:

East West Bancorp, Inc. operates as the bank holding company for East West Bank that provides a range of personal and commercial banking services to businesses and individuals in the United States. The company operates through three segments: Consumer and Business Banking, Commercial Banking, and Treasury and Other. It accepts various deposit products, such as personal and business checking and savings accounts, money market, and time deposits. The company provides various loan products, such as mortgage and home equity, commercial and residential real estate, construction finance, commercial business lending, working capital lines of credit, trade finance, letters of credit, affordable housing lending, asset-based lending, asset-backed finance, project finance, equipment financing, loan syndication, and equipment loans, as well as financing services for clients to facilitate their business transactions between the United States and Asia. It also provides foreign exchange, treasury management, wealth management, and interest rate and commodity risk hedging services; and mobile, and online banking services. The company was founded in 1973 and is headquartered in Pasadena, 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.

East West Bancorp, Inc. has a Value Score of 62, which is considered to be undervalued.

East West Bancorp, Inc.’s price-earnings ratio is 10.9 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 East West Bancorp, Inc. more attractive for value investors.

East West Bancorp, Inc.’s price-to-book ratio is lower than its peers. This could make East West Bancorp, Inc. more attractive for value investors when compared to the industry median at 1.11.

You can read more about East West 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.

First Business Financial Services, Inc.’s Value Grade

Value Grade:

First Business Financial Services, Inc. operates as the bank holding company for First Business Bank that provides commercial banking products and services for small and medium-sized businesses, business owners, executives, professionals, and high net worth individuals in Wisconsin, Kansas, and Missouri. The company offers commercial real estate lending, commercial and industrial lending, asset-based lending, accounts receivable financing, equipment financing, floorplan financing, vendor financing, small business administration lending and servicing, treasury management solutions, and company retirement services. It also provides private wealth management for individuals, including creating and executing asset allocation strategies, trust and estate administration, financial planning, investment management, and access to brokerage and custody-only services, as well as private banking to private wealth clients. In addition, the company offers bank consulting services consisting of balance sheet, investment portfolio, and asset liability management services. Further, it provides commercial deposit accounts. The company was founded in 1909 and is headquartered in Madison, Wisconsin.

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 Business Financial Services, Inc. has a Value Score of 79, which is considered to be undervalued.

First Business Financial Services, Inc.’s price-earnings ratio is 9.1 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 Business Financial Services, Inc. more attractive for value investors.

First Business Financial Services, Inc.’s price-to-book ratio is lower than its peers. This could make First Business Financial Services, Inc. more attractive for value investors when compared to the industry median at 1.11.

You can read more about First Business 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.

Investar Holding Corporation’s Value Grade

Value Grade:

Investar Holding Corporation operates as the bank holding company for Investar Bank that provides a range of commercial banking products to individuals, professionals, and small to medium-sized businesses in south Louisiana, southeast Texas, and Alabama in the United States. The company offers various deposit products and services, such as savings, checking, money market, and individual retirement accounts, as well as various certificates of deposit; debit and credit cards; internet, mobile, and video banking services; and reciprocal deposit products. It also provides commercial real estate loans; commercial and industrial loans, including working capital lines of credit and equipment loans; construction and development loans comprising loans for the construction of commercial projects, and single family residential and multifamily properties; one-to-four family residential real estate loans, which includes second mortgage loans; and consumer loans, such as secured or unsecured loans, installment or term loans, home equity loans and lines of credit, business purpose loans, and auto loans, as well as loans for personal, family, and household purposes. In addition, the company offers treasury management products, including remote deposit capture, virtual vaults, positive pay, automated clearing house origination, credit card processing, wire transfers, investment sweep accounts, and business internet banking services. Further, it provides various other banking services, such as cashier’s checks, direct deposit of payroll and social security checks, night depository, bank-by-mail, ATMs with deposit automation, electronic statements, interactive teller machines, online account opening, online bill payment, online fund transfer, Zelle money transfer solutions, and mobile wallet payment option services. Investar Holding Corporation was founded in 2006 and is headquartered in Baton Rouge, Louisiana.

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.

Investar Holding Corporation has a Value Score of 62, which is considered to be undervalued.

Investar Holding Corporation’s price-earnings ratio is 12.6 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 Investar Holding Corporation less attractive for value investors.

Investar Holding Corporation’s price-to-book ratio is higher than its peers. This could make Investar Holding Corporation less attractive for value investors when compared to the industry median at 1.11.

You can read more about Investar Holding 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.

The Bank of N.T. Butterfield & Son Limited’s Value Grade

Value Grade:

The Bank of N.T. Butterfield & Son Limited provides a range of community, commercial, and private banking services to individuals and small to medium-sized businesses. The company offers retail and corporate checking, savings, and term deposits. It also provides lending products and services, including residential mortgage lending, automobile lending, credit cards, consumer financing, overdraft facilities to retail customers, commercial real estate lending, and commercial and industrial loans. In addition, the company offers cash and liquidity management, foreign exchange, custody administration, and settlement services. Further, it provides personal and business deposit services, residential and commercial mortgages, small and medium-sized enterprise and corporate loans, credit and debit cards, merchant acquiring, and mobile and internet banking services; and treasury services, wealth management, and fiduciary services. Additionally, the company offers discretionary investment management, managed portfolio services, money market, and mutual fund offerings, as well as advisory and self-directed brokerage options. It operates through offices in the Cayman Islands, Guernsey, Jersey, the United Kingdom, The Bahamas, Hong Kong, Switzerland, Singapore, Mauritius, and Canada, as well as Bermuda. The Bank of N.T. Butterfield & Son Limited was founded in 1784 and is headquartered in Hamilton, Bermuda.

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.

The Bank of N.T. Butterfield & Son Limited has a Value Score of 75, which is considered to be undervalued.

The Bank of N.T. Butterfield & Son Limited’s price-earnings ratio is 9.5 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 The Bank of N.T. Butterfield & Son Limited more attractive for value investors.

The Bank of N.T. Butterfield & Son Limited’s price-to-book ratio is lower than its peers. This could make The Bank of N.T. Butterfield & Son Limited more attractive for value investors when compared to the industry median at 1.11.

You can read more about The Bank of N.T. Butterfield & Son Limited’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.

Parke Bancorp, Inc.’s Value Grade

Value Grade:

Parke Bancorp, Inc. operates as the bank holding company for Parke Bank that provides personal and business financial services to individuals and small to mid-sized businesses. Its accepts various deposit products, including checking, savings, money market, time, and other traditional deposit services, as well as individual retirement accounts and certificates of deposit. The company’s loan portfolio consists of residential, commercial real estate, construction, commercial and industry, and consumer loans. It also offers debit cards, internet banking, and online bill payment services. Parke Bancorp, Inc. was founded in 1999 and is headquartered in Washington Township, New Jersey.

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.

Parke Bancorp, Inc. has a Value Score of 79, which is considered to be undervalued.

Parke Bancorp, Inc.’s price-earnings ratio is 8.9 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 Parke Bancorp, Inc. more attractive for value investors.

Parke Bancorp, Inc.’s price-to-book ratio is higher than its peers. This could make Parke Bancorp, Inc. less attractive for value investors when compared to the industry median at 1.11.

You can read more about Parke 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 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.

• BOK Financial Corporation stock has a Value Grade of B.
• Cashmere Valley Bank stock has a Value Grade of B.
• East West Bancorp, Inc. stock has a Value Grade of B.
• First Business Financial Services, Inc. stock has a Value Grade of B.
• Investar Holding Corporation stock has a Value Grade of B.
• The Bank of N.T. Butterfield & Son Limited stock has a Value Grade of B.
• Parke Bancorp, Inc. 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.

• Screening on Dividend Yield to Unlock Stocks With High Potential
• 7 Undervalued Banks Stocks for Tuesday, March 31
• Is Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) Overvalued?
• Is Banco Santander, S.A. (SAN) 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.