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 Monday, June 15, 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.

Avidia Bancorp, Inc.’s Value Grade

Value Grade:

Avidia Bancorp, Inc. operates as the bank holding company for Avidia Bank that provides various financial services to individual and corporate customers. The company offers savings and checking, certificates of deposit, individual retirement, money market, demand deposit, and interest-bearing and noninterest-bearing checking accounts. It also provides savings, checking, debit cards, credit cards, youth accounts, veterans checking, mobile banking, internet banking, international wires, and health savings and borrowing services, including loans, home equity, mortgages, masshousing homeowner loans, and auto loans. Additionally, the company offers e-banking services, cash management, merchant services, law firm banking, nonprofit banking, and municipal banking services and borrowing services that include commercial loans, commercial mortgage loans, land development loans, business term loans, working capital lines of credit, letters of credit, business manager, dental practice loans, condo association loans, and small business banking partnership services. Further, it offers payments processing services; and invests in liquid assets, including U.S. Treasury securities, U.S. government agency and government-sponsored enterprise securities, mortgage-backed securities, municipal securities, certificates of deposit of federally-insured institutions, and investment grade corporate bonds. Avidia Bancorp, Inc. was founded in 1869 and is headquartered in Hudson, Massachusetts.

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.

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

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. Avidia Bancorp, Inc.’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. Avidia Bancorp, Inc.’s price-to-book ratio is lower than its industry median ratio of 1.21. This could make Avidia Bancorp, Inc. more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Avidia 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. Avidia Bancorp, Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 15.75. This could make Avidia Bancorp, Inc. more attractive because the lower P/FCF ratio indicates that Avidia 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.

Dime Commercial Bancshares, Inc.’s Value Grade

Value Grade:

Dime Commercial Bancshares, Inc. operates as the holding company for Dime Community Bank that engages in the provision of various commercial banking and financial services. It accepts time, savings, and demand deposits from the businesses, consumers, and local municipalities. The company offers commercial real estate loans; multi-family mortgage loans; residential mortgage loans; letters of credit; secured and unsecured commercial and consumer loans; lines of credit; home equity loans; and construction and land loans. In addition, it invests in Federal Home Loan Bank, Federal National Mortgage Association, Government National Mortgage Association, and Federal Home Loan Mortgage Corporation mortgage-backed securities, collateralized mortgage obligations, and other asset backed securities; U.S. Treasury securities; New York state and local municipal obligations; U.S. government-sponsored enterprise securities; and corporate bonds. Further, the company offers certificate of deposit account registry services and insured cash sweep programs; federal deposit insurance corporation insurance; merchant credit and debit card processing, automated teller machines, cash management services, lockbox processing, online banking services, remote deposit capture, safe deposit boxes, and individual retirement accounts; investment products and services through a third-party broker dealer; and title insurance broker services for small and medium sized businesses, and municipal and consumer relationships. The company was formerly known as Dime Community Bancshares, Inc. and changed its name to Dime Commercial Bancshares, Inc. in May 2026. Dime Commercial Bancshares, Inc. was founded in 1910 and is headquartered in Hauppauge, 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.

Dime Commercial Bancshares, Inc. has a Value Score of 61, which is considered to be undervalued.

Dime Commercial Bancshares, Inc.’s price-earnings ratio is 15.1 compared to the industry median at 12.3. This means that it has a higher price relative to its earnings compared to its peers. This makes Dime Commercial Bancshares, Inc. less attractive for value investors.

Dime Commercial Bancshares, Inc.’s price-to-book ratio is lower than its peers. This could make Dime Commercial Bancshares, Inc. more attractive for value investors when compared to the industry median at 1.21.

You can read more about Dime Commercial 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.

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 73, which is considered to be undervalued.

The Bank of N.T. Butterfield & Son Limited’s price-earnings ratio is 10.2 compared to the industry median at 12.3. 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 1.21.

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.

OP Bancorp’s Value Grade

Value Grade:

OP Bancorp operates as the bank holding company for Open Bank that provides banking products and services. It offers demand, savings, money market, and time deposit accounts, as well as certificates of deposit. It also provides commercial real estate, small business administration, home mortgage, and consumer loans. It operates full branch offices in Los Angeles and Orange Counties in California, as well as Santa Clara, California; Carrollton, Texas; Las Vegas, Nevada Pleasanton, California; Atlanta, Georgia; Aurora, Colorado; Lynnwood, Washington; and Fairfax, Virginia. The company was founded in 2005 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.

OP Bancorp has a Value Score of 89, which is considered to be undervalued.

OP Bancorp’s price-earnings ratio is 7.8 compared to the industry median at 12.3. This means that it has a lower price relative to its earnings compared to its peers. This makes OP Bancorp more attractive for value investors.

OP Bancorp’s price-to-book ratio is higher than its peers. This could make OP Bancorp less attractive for value investors when compared to the industry median at 1.21.

You can read more about OP 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.

South Plains Financial, Inc.’s Value Grade

Value Grade:

South Plains Financial, Inc. operates as a bank holding company for City Bank that provides commercial and consumer financial services to small and medium-sized businesses and individuals. It offers deposit products, including demand deposit accounts, interest-bearing products, savings accounts, and certificate of deposits. The company also provides traditional trust products and services; debit and credit cards; retirement services and products, including real estate administration, family trust administration, revocable and irrevocable trusts, charitable trusts for individuals and corporations, self-directed individual retirement accounts, simplified employee pensions plans, employee stock ownership plans, defined benefit plans, and profit-sharing plans. In addition, it offers investment services, such as self-directed IRAs, money market funds, mutual funds, annuities and tax-deferred annuities, stocks and bonds, investments for non-U.S. residents, treasury bills, treasury notes and bonds, and tax-exempt municipal bonds. Further, the company provides commercial real estate loans; general and specialized commercial loans, including agricultural production and real estate, energy, finance, investment, and insurance loans, as well as loans to goods, services, restaurant and retail, construction, and other industries; residential construction loans; and 1-4 family residential loans, auto loans, and other loans for recreational vehicles or other purposes; and mortgage banking services. The company was founded in 1941 and is headquartered in Lubbock, 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.

South Plains Financial, Inc. has a Value Score of 70, which is considered to be undervalued.

South Plains Financial, Inc.’s price-earnings ratio is 11.9 compared to the industry median at 12.3. This means that it has a lower price relative to its earnings compared to its peers. This makes South Plains Financial, Inc. more attractive for value investors.

South Plains Financial, Inc.’s price-to-book ratio is lower than its peers. This could make South Plains Financial, Inc. more attractive for value investors when compared to the industry median at 1.21.

You can read more about South Plains Financial, 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.

Wells Fargo & Company’s Value Grade

Value Grade:

Wells Fargo & Company, a financial services company, provides diversified banking, investment, mortgage, and consumer and commercial finance products and services in the United States and internationally. It operates through four segments: Consumer Banking and Lending; Commercial Banking; Corporate and Investment Banking; and Wealth and Investment Management. The company’s financial products and services includes checking and savings accounts, and credit and debit cards, as well as home, auto, personal, and small business lending services. It also provides personalized wealth management, brokerage, financial planning, lending, private banking, trust and fiduciary products and services; and financial solutions to private, family owned and public companies through products and services including banking and credit products across multiple industry sectors and municipalities, secured lending and lease products, and treasury management. In addition, it offers a suite of capital markets, banking, and financial products and services, such as corporate banking, investment banking, treasury management, commercial real estate lending and servicing, equity, and fixed income solutions, as well as sales, trading, and research capabilities services to corporate, commercial real estate, government, and institutional clients. Wells Fargo & Company was founded in 1852 and is headquartered in San Francisco, 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.

Wells Fargo & Company has a Value Score of 74, which is considered to be undervalued.

Wells Fargo & Company’s price-earnings ratio is 12.9 compared to the industry median at 12.3. This means that it has a higher price relative to its earnings compared to its peers. This makes Wells Fargo & Company less attractive for value investors.

Wells Fargo & Company’s price-to-book ratio is lower than its peers. This could make Wells Fargo & Company more attractive for value investors when compared to the industry median at 1.21.

You can read more about Wells Fargo & Company’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.

• Avidia Bancorp, Inc. stock has a Value Grade of B.
• Dime Commercial Bancshares, Inc. stock has a Value Grade of B.
• The Bank of N.T. Butterfield & Son Limited stock has a Value Grade of B.
• OP Bancorp stock has a Value Grade of A.
• South Plains Financial, Inc. stock has a Value Grade of B.
• Wells Fargo & Company 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 Friday, June 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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