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.

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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 Tuesday, May 12, 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.

Greene County Bancorp, Inc.’s Value Grade

Value Grade:

Greene County Bancorp, Inc. operates as a holding company for The Bank of Greene County that provides various financial services in the United States. The company offers deposit products, such as savings, NOW accounts, money market accounts, certificates of deposit, non-interest bearing checking accounts, and individual retirement accounts. Its loan portfolio includes residential, construction and land loans; commercial real estate mortgages; consumer loans, including loans on new and used automobiles, personal loans, and home equity loans, as well as other consumer installment loans comprising passbook loans, unsecured home improvement loans, recreational vehicle loans, and deposit account overdrafts; and commercial loans. In addition, it provides transaction processing and investment brokerage services. Further, it engages in the sale of securities and the operation of banking office, lending centers, an operations center, customer call center, administration center, and a wealth management center. The company was founded in 1889 and is based in Catskill, New York. Greene County Bancorp, Inc. operates as a subsidiary of Greene County Bancorp, MHC.

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.

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

When you look at Greene County Bancorp, Inc.’s price-to-sales ratio at 4.89 compared to the industry median at 3.20, this company has a higher price relative to revenue compared to its peers. This could make Greene County Bancorp, Inc.’s stock less attractive for value investors.

Greene County Bancorp, Inc.’s price-earnings ratio is 11.00 compared to the industry median at 11.80. This means it has a lower share price relative to earnings compared to its peers. This could make Greene County Bancorp, 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. Greene County Bancorp, Inc.’s shareholder yield is lower than its industry median ratio of 2.30%. 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. Greene County Bancorp, Inc.’s price-to-book ratio is higher than its industry median ratio of 1.14. This could make Greene County Bancorp, Inc. less attractive to investors looking for a new addition to their portfolio.

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

Home BancShares, Inc.’s Value Grade

Value Grade:

Home BancShares, Inc. operates as the bank holding company for Centennial Bank that provides commercial and retail banking, and related financial services to businesses, real estate developers and investors, individuals, and municipalities in the United States. The company offers deposit services, including checking, savings, and money market accounts, as well as certificates of deposit. It also provides loans comprising non-farm/non-residential real estate, construction/land development, residential mortgage, consumer, agricultural, and commercial and industrial loans. In addition, the company offers other banking services, such as internet and mobile banking, voice response information, cash management, overdraft protection, direct deposit, and automatic account transfer services, as well as safe deposit boxes and the United States savings bonds. Further, it provides trust, wealth management, and custodial services, as well as trustee services, escrow, and paying agent services. Additionally, the company writes policies for commercial and personal lines of business, including insurance for property, casualty, life, health, and employee benefits. It operates its branches in Arkansas, Florida, Texas, South Alabama, and New York City. Home BancShares, Inc. was founded in 1903 and is headquartered in Conway, Arkansas.

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.

Home BancShares, Inc. has a Value Score of 64, which is considered to be undervalued.

Home BancShares, Inc.’s price-earnings ratio is 10.8 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 Home BancShares, Inc. more attractive for value investors.

Home BancShares, Inc.’s price-to-book ratio is lower than its peers. This could make Home BancShares, Inc. more attractive for value investors when compared to the industry median at 1.14.

You can read more about Home BancShares, 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.

LCNB Corp.’s Value Grade

Value Grade:

LCNB Corp. operates as the financial holding company for LCNB National Bank that provides banking services in the United States. It offers checking and savings accounts; interest-bearing demand and money market deposit; and time certificates. The company also provides commercial and industrial, commercial and residential real estate, agricultural, construction, various types of consumer, and small business administration loans; residential mortgage loans, such as loans for purchasing or refinancing personal residences, home equity lines of credit, and loans for commercial or consumer purposes secured by residential mortgages; and consumer lending comprising automobile, boat, home improvement, and personal loans. In addition, it offers trust administration, estate settlement, and fiduciary services; and investment management of trusts, agency accounts, individual retirement accounts, and foundations/endowments. Further, the company offers investment services and products, including financial needs analysis, mutual funds, securities trading, annuities, and life insurance; and security brokerage services. Additionally, it provides safe deposit boxes, night depositories, cashier's checks, bank-by-mail, ATMs, cash and transaction services, debit cards, wire transfers, electronic funds transfer, utility bill collections, notary public service, cash management services, telephone banking, PC Internet banking, mobile banking, and other services for individuals and businesses. LCNB Corp. was founded in 1877 and is headquartered in Lebanon, 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.

LCNB Corp. has a Value Score of 91, which is considered to be undervalued.

LCNB Corp.’s price-earnings ratio is 9.8 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 LCNB Corp. more attractive for value investors.

LCNB Corp.’s price-to-book ratio is higher than its peers. This could make LCNB Corp. less attractive for value investors when compared to the industry median at 1.14.

You can read more about LCNB 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.

TriCo Bancshares’s Value Grade

Value Grade:

TriCo Bancshares operates as a bank holding company for Tri Counties Bank that provides commercial and retail banking services to individual and corporate customers. The company accepts demand, savings, and time deposits; and offers checking, specialized, money market, education, health savings, certificate of deposit, and business and public funds savings accounts, as well as individual retirement accounts. It also offers small business loans; real estate mortgage loans, such as residential and commercial loans; consumer loans; mortgage, auto, and personal loans; commercial loans, including agricultural loans; motorcycle, RV, boat, and other vehicle loans; and real estate construction loans. In addition, the company provides treasury management services; credit and debit cards; other customary banking services comprising safe deposit boxes; and brokerage and wealth management services. Further, it offers equipment financing, digital banking, overdraft, and payment processing services. The company was founded in 1975 and is headquartered in Chico, 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.

TriCo Bancshares has a Value Score of 63, which is considered to be undervalued.

TriCo Bancshares’s price-earnings ratio is 13.6 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 TriCo Bancshares less attractive for value investors.

TriCo Bancshares’s price-to-book ratio is lower than its peers. This could make TriCo Bancshares more attractive for value investors when compared to the industry median at 1.14.

You can read more about TriCo Bancshares’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.

Third Coast Bancshares, Inc.’s Value Grade

Value Grade:

Third Coast Bancshares, Inc. operates as the bank holding company for Third Coast Bank that provides various commercial banking solutions to small and medium-sized businesses and professionals in Texas, the United States. The company’s deposit products include checking, money market, savings, and individual retirement accounts, as well as certificates of deposit. Its loan portfolio consists of commercial and residential real estate loans; construction, development and other loans; commercial and industrial loans; and farmland, consumer, and agricultural loans, as well as lease financing and bond anticipation notes, as well as financial products and services. The company also provides retail and commercial online banking platforms, mobile banking apps, treasury management solutions, merchant card services, and customer digital solutions, as well as debit and credit cards. In addition, it offers state and municipal and mortgage-backed securities, agency collateralized mortgage obligations, the U.S. treasury bonds, and corporate bonds. The company was founded in 2008 and is headquartered in Humble, Texas.

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.

Third Coast Bancshares, Inc. has a Value Score of 63, which is considered to be undervalued.

Third Coast Bancshares, Inc.’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 Third Coast Bancshares, Inc. more attractive for value investors.

Third Coast Bancshares, Inc.’s price-to-book ratio is higher than its peers. This could make Third Coast Bancshares, Inc. less attractive for value investors when compared to the industry median at 1.14.

You can read more about Third Coast Bancshares, 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.

• Greene County Bancorp, Inc. stock has a Value Grade of B.
• Home BancShares, Inc. stock has a Value Grade of B.
• LCNB Corp. stock has a Value Grade of A.
• TriCo Bancshares stock has a Value Grade of B.
• Third Coast Bancshares, 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 Tuesday, May 12
• 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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