Featured Tickers:

FRBA

FRBT

USCB

VLY

WASH

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.

Click the button below to learn more about A+ Investor and subscribe today.

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 Saturday, August 01, 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.

Company	Ticker	Price/Sales	Price/Earnings	EV/EBITDA	Shareholder Yield	Price/Book Value	Price/Free Cash Flow	Value Grade
First Bank	FRBA	3.47	11.1	na	2.6%	1.03	9.8	A
Forbright, Inc.	FRBT	na	9.1	na	0.0%	0.97	33.0	B
USCB Financial Holdings, Inc.	USCB	4.60	15.1	na	11.3%	1.79	12.0	B
Valley National Bancorp	VLY	4.11	12.9	na	3.8%	1.06	27.5	B
Washington Trust Bancorp, Inc.	WASH	3.46	14.2	na	6.9%	1.36	18.0	B

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.

First Bank’s Value Grade

Value Grade:

Metric	Score	FRBA	Industry Median
Price/Sales	66	3.47	3.58
Price/Earnings	20	11.1	12.9
EV/EBITDA	na	na	0.0
Shareholder Yield	27	2.6%	2.3%
Price/Book Value	24	1.03	1.27
Price/Free Cash Flow	22	9.8	16.3

First Bank provides various banking products and services to small and mid-sized businesses and individuals. It accepts various deposits, including non-interest- and interest-bearing demand deposits, money market accounts, savings accounts, and certificates of deposit, as well as commercial checking and cash management accounts. The company also offers various loan products, such as commercial and industrial loans, which include line of credit, inventory, equipment, and short-term working capital financing; commercial real estate loans comprising owner-occupied, investor, construction and development, and multi-family loans; residential mortgages loans, home equity loans, and revolving lines of credit; and consumer and other loans, such as auto, personal, traditional installment, and other loans. In addition, it provides digital banking services, including online, mobile, telephone banking; ATM and debit cards, and wire and ACH transfer services; remote deposit capture; and cash management services, as well as engages in the capital markets activities. The company operates full-service branches in Cinnaminson, Delanco, Denville, Ewing, Fairfield, Flemington, Hamilton, Lawrenceville, Monroe, Morristown, Oceanport, Pennington, Randolph, Somerset, Trenton, Williamstown, New Jersey; Devon, Doylestown, Lionville, Malvern, Media, Paoli, Trevose, Warminster, and West Chester, Pennsylvania; and Wellington, Florida. First Bank was incorporated in 2007 and is headquartered in Hamilton, 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.

First Bank has a Value Score of 81, which is considered to be undervalued.

When you look at First Bank’s price-to-sales ratio at 3.47 compared to the industry median at 3.58, this company has a lower price relative to revenue compared to its peers. This could make First Bank’s stock more attractive for value investors.

First Bank’s price-earnings ratio is 11.10 compared to the industry median at 12.90. This means it has a lower share price relative to earnings compared to its peers. This could make First Bank 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. First Bank’s shareholder yield is higher 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. First Bank’s price-to-book ratio is lower than its industry median ratio of 1.27. This could make First Bank more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at First Bank’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. First Bank’s price-to-free-cash-flow ratio is lower than its industry median ratio of 16.30. This could make First Bank more attractive because the lower P/FCF ratio indicates that First Bank 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.

Forbright, Inc.’s Value Grade

Value Grade:

Metric	Score	FRBT	Industry Median
Price/Sales	na	na	3.58
Price/Earnings	13	9.1	12.9
EV/EBITDA	na	na	0.0
Shareholder Yield	48	0.0%	2.3%
Price/Book Value	22	0.97	1.27
Price/Free Cash Flow	70	33.0	16.3

Forbright, Inc. operates as the bank holding company for Forbright Bank that provides various financial services for consumers and businesses in the United States. The company offers checking and savings accounts, certificates of deposit, and other account and branch banking services; checking and money markets, large deposits, order checks, and individual retirement account; and asset, corporate, fund, healthcare, lender, and real estate financing services, as well as credit cards. It also provides middle market lending, digital consumer banking, strategic advisory, and asset management services. Forbright, Inc. was founded in 2003 and is headquartered in Chevy Chase, 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.

Forbright, Inc. has a Value Score of 69, which is considered to be undervalued.

Forbright, Inc.’s price-earnings ratio is 9.1 compared to the industry median at 12.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Forbright, Inc. more attractive for value investors.

Forbright, Inc.’s price-to-book ratio is higher than its peers. This could make Forbright, Inc. less attractive for value investors when compared to the industry median at 1.27.

You can read more about Forbright, 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.

USCB Financial Holdings, Inc.’s Value Grade

Value Grade:

Metric	Score	USCB	Industry Median
Price/Sales	76	4.60	3.58
Price/Earnings	36	15.1	12.9
EV/EBITDA	na	na	0.0
Shareholder Yield	4	11.3%	2.3%
Price/Book Value	47	1.79	1.27
Price/Free Cash Flow	29	12.0	16.3

USCB Financial Holdings, Inc. operates as the bank holding company for U.S. Century Bank that provides various personal and business banking products and services in the United States. The company offers small business administration and yacht lending services; homeowners association services, including deposit collection, lockbox services, payment services, and lending products; jurist advantage and private client group services; correspondent banking services for banks in certain Latin America and the Caribbean countries. It also provides deposit products, including commercial and consumer checking accounts, money market deposit accounts, savings accounts, and certificates of deposit; treasury, commercial payment, and cash management services; insured cash sweep and certificate of deposit account registry services; and clients title insurance policies for real estate transactions. The company was founded in 2002 and is headquartered in Doral, Florida.

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.

USCB Financial Holdings, Inc. has a Value Score of 68, which is considered to be undervalued.

USCB Financial Holdings, Inc.’s price-earnings ratio is 15.1 compared to the industry median at 12.9. This means that it has a higher price relative to its earnings compared to its peers. This makes USCB Financial Holdings, Inc. less attractive for value investors.

USCB Financial Holdings, Inc.’s price-to-book ratio is lower than its peers. This could make USCB Financial Holdings, Inc. more attractive for value investors when compared to the industry median at 1.27.

You can read more about USCB Financial Holdings, 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.

Valley National Bancorp’s Value Grade

Value Grade:

Metric	Score	VLY	Industry Median
Price/Sales	72	4.11	3.58
Price/Earnings	28	12.9	12.9
EV/EBITDA	na	na	0.0
Shareholder Yield	21	3.8%	2.3%
Price/Book Value	25	1.06	1.27
Price/Free Cash Flow	64	27.5	16.3

Valley National Bancorp operates as the holding company for Valley National Bank that provides various commercial, private banking, retail, insurance, and wealth management financial services products. The company operates through Consumer Banking, Commercial Banking, and Treasury and Corporate other segments. It offers non-interest bearing, savings, NOW, money market, and time deposit accounts; commercial and industrial, commercial real estate, construction, residential mortgage, and automobile loans; loans secured by the cash surrender value of life insurance; home equity loans and lines of credit; automobile financing; and secured and unsecured other consumer loans. The company also invests in various securities and interest-bearing deposits with other banks; and provides international banking services. In addition, it offers investment services for individuals and small to medium sized businesses; and trusts investment strategies designed for various investment profiles and objectives. Further, the company provides trust services, such as living and testamentary trusts, investment management, custodial and escrow services, and estate administration to individuals; tax credit advisory services; brokerage services; property and casualty, life, health, and title insurance agency services; and health care equipment lending and other commercial equipment leasing services, as well as private banking and management services. Additionally, it offers niche financial services, including loan and deposit products for homeowners associations, cannabis-related business banking, and venture banking; online, mobile, and telephone banking services; credit cards; and automated teller machine services. Valley National Bancorp was founded in 1927 and is headquartered in Morristown, 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.

Valley National Bancorp has a Value Score of 62, which is considered to be undervalued.

Valley National Bancorp’s price-earnings ratio is 12.9 compared to the industry median at 12.9. This means that it has a higher price relative to its earnings compared to its peers. This makes Valley National Bancorp fairly attractive for value investors.

Valley National Bancorp’s price-to-book ratio is higher than its peers. This could make Valley National Bancorp less attractive for value investors when compared to the industry median at 1.27.

You can read more about Valley National 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.

Washington Trust Bancorp, Inc.’s Value Grade

Value Grade:

Metric	Score	WASH	Industry Median
Price/Sales	66	3.46	3.58
Price/Earnings	33	14.2	12.9
EV/EBITDA	na	na	0.0
Shareholder Yield	10	6.9%	2.3%
Price/Book Value	35	1.36	1.27
Price/Free Cash Flow	46	18.0	16.3

Washington Trust Bancorp, Inc. operates as the bank holding company for The Washington Trust Company, of Westerly that provides various banking and financial services to individuals and businesses. The company operates in two segments, Banking and Wealth Management Services. The Banking segment offers deposit accounts, including noninterest-bearing demand deposits, interest-bearing demand deposits, now accounts, money market accounts, savings accounts, and time deposits; various commercial and retail lending products, such as commercial real estate loans, including commercial mortgages, and construction and development loans; commercial and industrial loans comprising working capital, equipment financing, and financing for other business-related purposes; residential real estate loans that consist of mortgage and homeowner construction loans; and consumer loans comprising home equity loans and lines of credit, personal installment loans, and loans to individuals secured by general aviation aircraft. This segment also provides debit cards; automated teller machines (ATMs); telephone banking, internet banking, mobile banking, remote deposit capture, and other cash management services; and investment portfolio and wholesale funding services. The Wealth Management Services segment offers investment management; financial planning; personal trust and estate services, such as trustee, personal representative, custodian, and guardian; and settlement of decedents’ estates, as well as institutional trust services comprising custody and fiduciary services for personal and institutional clients. Washington Trust Bancorp, Inc. was founded in 1800 and is headquartered in Westerly, Rhode Island.

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.

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

Washington Trust Bancorp, Inc.’s price-earnings ratio is 14.2 compared to the industry median at 12.9. This means that it has a higher price relative to its earnings compared to its peers. This makes Washington Trust Bancorp, Inc. less attractive for value investors.

Washington Trust Bancorp, Inc.’s price-to-book ratio is lower than its peers. This could make Washington Trust Bancorp, Inc. more attractive for value investors when compared to the industry median at 1.27.

You can read more about Washington Trust 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 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.

First Bank stock has a Value Grade of A.
Forbright, Inc. stock has a Value Grade of B.
USCB Financial Holdings, Inc. stock has a Value Grade of B.
Valley National Bancorp stock has a Value Grade of B.
Washington Trust Bancorp, 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.

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.