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, April 08, 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.

California BanCorp’s Value Grade

Value Grade:

California BanCorp operates as the bank holding company for California Bank of Commerce, N.A. that provides various financial products to individuals, professionals, and small- to medium-sized businesses in California, the United States. The company offers checking, savings, and money market accounts; and certificates of deposit. It also provides business loans, including construction and land development loans, commercial and industrial loans, small business administration loans, and consumer loans, as well as commercial real estate (CRE) loans comprising one- to four-family and multifamily residential loans, owner-occupied CRE loans, and non-owner-occupied CRE loans; lines of credit; home equity lines of credit; and letters of credit. In addition, the company offers treasury management; merchant services; escrow and sub-accounting solutions; cash vault, sweep accounts, and remote deposit capture services; online and mobile banking services; and ACH origination, courier, and lockbox processing services. It serves businesses, business owners and their trusts, limited liability corporations, business partnerships, associations, organizations, and governmental authorities, as well as the manufacturing, wholesale distribution, professional services, commercial real estate, healthcare, hospitality, commercial contractor, and non-profit organization sectors. The company was formerly known as Southern California Bancorp and changed its name to California BanCorp in August 2024. California BanCorp was founded in 2001 and is headquartered in San Diego, 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.

California BanCorp has a Value Score of 80, which is considered to be undervalued.

When you look at California BanCorp’s price-to-sales ratio at 3.08 compared to the industry median at 3.25, this company has a lower price relative to revenue compared to its peers. This could make California BanCorp’s stock more attractive for value investors.

California BanCorp’s price-earnings ratio is 9.40 compared to the industry median at 12.00. This means it has a lower share price relative to earnings compared to its peers. This could make California 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. California BanCorp’s shareholder yield is lower than its industry median ratio of 2.50%. 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. California BanCorp’s price-to-book ratio is lower than its industry median ratio of 1.13. This could make California BanCorp more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at California BanCorp’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. California BanCorp’s price-to-free-cash-flow ratio is lower than its industry median ratio of 15.80. This could make California BanCorp more attractive because the lower P/FCF ratio indicates that California 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.

Hanmi Financial Corporation’s Value Grade

Value Grade:

Hanmi Financial Corporation operates as the holding company for Hanmi Bank that provides business banking products and services in the United States. The company offers deposit products, including noninterest-bearing checking, negotiable order of withdrawal, savings, and money market accounts, as well as certificates of deposit. It also provides real estate loans, such as commercial property, construction, and residential property loans; and commercial and industrial loans comprising commercial term loan, and commercial lines of credit and international; equipment lease financing; and international finance and trade services and products, including letters of credit, and import and export financing. In addition, the company offers small business administration loans for business purposes, such as owner-occupied commercial real estate, business acquisitions, start-ups, franchise financing, working capital, improvements and renovations, inventory and equipment, and debt-refinancing. Hanmi Financial Corporation was founded in 1982 and is based 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.

Hanmi Financial Corporation has a Value Score of 88, which is considered to be undervalued.

Hanmi Financial Corporation’s price-earnings ratio is 10.7 compared to the industry median at 12.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Hanmi Financial Corporation more attractive for value investors.

Hanmi Financial Corporation’s price-to-book ratio is higher than its peers. This could make Hanmi Financial Corporation less attractive for value investors when compared to the industry median at 1.13.

You can read more about Hanmi 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.

Mercantile Bank Corporation’s Value Grade

Value Grade:

Mercantile Bank Corporation operates as the bank holding company for Mercantile Bank that provides commercial and retail banking services to small- to medium-sized businesses and individuals in the United States. The company accepts various deposit products, such as checking, savings, and term certificate accounts; time deposits; and certificates of deposit. It also provides commercial and industrial loans; vacant land, land development, and residential construction loans; owner and non-owner occupied real estate loans; multi-family and residential rental property loans; single-family residential real estate loans; home equity line of credit programs; consumer loans, such as new and used automobile and boat loans, and credit cards, as well as overdraft protection services; and residential mortgage and instalment loans. In addition, the company offers courier services and safe deposit boxes; and insurance products, such as private passenger automobile, homeowners, personal inland marine, boat owners, recreational vehicle, dwelling fire, umbrella policies, small business, and life insurance products. Mercantile Bank Corporation was incorporated in 1997 and is headquartered in Grand Rapids, Michigan.

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.

Mercantile Bank Corporation has a Value Score of 71, which is considered to be undervalued.

Mercantile Bank Corporation’s price-earnings ratio is 9.5 compared to the industry median at 12.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Mercantile Bank Corporation more attractive for value investors.

Mercantile Bank Corporation’s price-to-book ratio is lower than its peers. This could make Mercantile Bank Corporation more attractive for value investors when compared to the industry median at 1.13.

You can read more about Mercantile Bank 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.

Northeast Community Bancorp, Inc.’s Value Grade

Value Grade:

Northeast Community Bancorp, Inc. operates as the holding company for NorthEast Community Bank that provides financial services for individuals and businesses. It accepts various deposit instruments, including checking accounts, money market accounts, regular savings accounts, and non-interest-bearing demand accounts, as well as certificates of deposits. The company also offers construction, commercial and industrial loans, multifamily and mixed-use real estate, non-residential real estate loans, and consumer loans. In addition, it invests in various types of liquid assets, including U.S. Treasury obligations, municipal securities, deposits at the Federal Home Loan Bank of New York, and certificates of deposit of federally insured institutions, as well as securities of various federal agencies, and state and municipal governments. Further, the company offers life insurance products and fixed rate annuities. It operates full-service branches located in Bronx, New York, Orange, Rockland, and Sullivan Counties in New York, Essex, Middlesex, and Norfolk Counties in Massachusetts; and loan production offices located in White Plains, New York; New City, New York; and Danvers, Massachusetts. Additionally, the company provides services such as personal loans and overdraft protection, and utilizes brokered, listing service, and military deposits, as well as borrowings, sources of funds, and retail deposit products. Northeast Community Bancorp, Inc. was founded in 1934 and is headquartered in White Plains, 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.

Northeast Community Bancorp, Inc. has a Value Score of 87, which is considered to be undervalued.

Northeast Community Bancorp, Inc.’s price-earnings ratio is 7.6 compared to the industry median at 12.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Northeast Community Bancorp, Inc. more attractive for value investors.

Northeast Community Bancorp, Inc.’s price-to-book ratio is higher than its peers. This could make Northeast Community Bancorp, Inc. less attractive for value investors when compared to the industry median at 1.13.

You can read more about Northeast Community 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.

Southern Missouri Bancorp, Inc.’s Value Grade

Value Grade:

Southern Missouri Bancorp, Inc. operates as the bank holding company for Southern Bank that provides banking and financial services to individuals and corporate customers in the United States. The company offers deposits products, including interest-bearing and noninterest-bearing transaction accounts, money market deposit accounts, saving accounts, certificates of deposit, and retirement savings plans. It also provides loans secured by mortgages on one- to four-family residences and commercial and agricultural real estate; construction loans on residential and commercial properties; commercial and agricultural business loans; and consumer loans. In addition, the company offers fiduciary and investment management services; commercial and consumer insurance products; and debit or credit cards. The company was founded in 1887 and is headquartered in Poplar Bluff, Missouri.

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.

Southern Missouri Bancorp, Inc. has a Value Score of 70, which is considered to be undervalued.

Southern Missouri Bancorp, Inc.’s price-earnings ratio is 11.4 compared to the industry median at 12.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Southern Missouri Bancorp, Inc. more attractive for value investors.

Southern Missouri Bancorp, Inc.’s price-to-book ratio is lower than its peers. This could make Southern Missouri Bancorp, Inc. more attractive for value investors when compared to the industry median at 1.13.

You can read more about Southern Missouri 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.

Western Alliance Bancorporation’s Value Grade

Value Grade:

Western Alliance Bancorporation operates as the bank holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada. It operates through Commercial and Consumer Related segments. The company offers deposit products, including demand deposit, checking, savings, and money market accounts, as well as fixed-rate and fixed maturity certificates of deposit accounts; treasury management products and services to small and middle-market businesses, specialized banking services to sophisticated commercial institutions and investors; and residential mortgage products and services. It also provides commercial and industrial loan products, such as working capital lines of credit, loans to technology companies, inventory and accounts receivable lines, mortgage warehouse lines, equipment loans and leases, and other commercial loans; commercial real estate loans, which are secured by multifamily residential properties, professional offices, industrial facilities, retail centers, hotels, and other commercial properties; construction and land development loans for single family and multifamily residential projects, industrial/warehouse properties, office buildings, retail centers, medical office facilities, and residential lot developments; and consumer loans. In addition, the company offers other financial services, such as internet banking, wire transfers, electronic bill payment and presentment, funds transfer and other digital payment offerings, lock box services, courier, and cash management services. Further, the company holds certain investment securities, municipal and non-profit loans, and leases; invests primarily in low-income housing tax credits and small business investment corporations; and certain real estate loans and related securities. Western Alliance Bancorporation was founded in 1994 and is headquartered in Phoenix, Arizona.

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.

Western Alliance Bancorporation has a Value Score of 84, which is considered to be undervalued.

Western Alliance Bancorporation’s price-earnings ratio is 8.2 compared to the industry median at 12.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Western Alliance Bancorporation more attractive for value investors.

Western Alliance Bancorporation’s price-to-book ratio is lower than its peers. This could make Western Alliance Bancorporation fairly attractive for value investors when compared to the industry median at 1.13.

You can read more about Western Alliance Bancorporation’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.

• California BanCorp stock has a Value Grade of B.
• Hanmi Financial Corporation stock has a Value Grade of A.
• Mercantile Bank Corporation stock has a Value Grade of B.
• Northeast Community Bancorp, Inc. stock has a Value Grade of A.
• Southern Missouri Bancorp, Inc. stock has a Value Grade of B.
• Western Alliance Bancorporation stock has a Value Grade of A.

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.

• Is Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) Overvalued?
• Is Bank of America Corporation (BAC) Overvalued?
• Is HSBC Holdings plc (HSBC) Overvalued?
• Is Mitsubishi UFJ Financial Group, Inc. (MUFG) 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.