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 Wednesday, August 19, 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 72, which is considered to be undervalued.

When you look at California BanCorp’s price-to-sales ratio at 3.79 compared to the industry median at 3.56, this company has a higher price relative to revenue compared to its peers. This could make California BanCorp’s stock less attractive for value investors.

California BanCorp’s price-earnings ratio is 11.80 compared to the industry median at 12.70. 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 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. California BanCorp’s price-to-book ratio is lower than its industry median ratio of 1.27. 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 15.10. 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.

Popular, Inc.’s Value Grade

Value Grade:

Popular, Inc., through its subsidiaries, provides various retail, mortgage, and commercial banking services for individuals and businesses in Puerto Rico, the United States, the British Virgin Islands, the Caribbean, and Latin America. The company offers savings, NOW, money market, and other interest-bearing demand accounts; non-interest bearing demand deposits; checking accounts; individual retirement accounts and educational contribution accounts; business accounts; investment accounts; private management accounts; and certificates of deposit. It also provides commercial and industrial, commercial real estate, commercial multi-family, and residential mortgage loans; consumer loans, including unsecured personal loans, home equity lines of credit, and other loans to individual borrowers; construction loans; lease financing comprising automobile loans and leases; renewable energy and marine loans; and startup program and healthcare hub financing. In addition, the company offers auto and equipment leasing and financing; broker-dealer; international and private banking; insurance services, such as travel, property, auto and boat, health, life, and title; debit and credit cards; family of funds and Keogh plans; mobile easy deposit, foreign exchange, and fiduciary services; retirement plans; wire transfers; coordination of auto, aircraft, and helicopter loans; financial planning; investment advice; ATM; and online banking services. Popular, Inc. was founded in 1893 and is headquartered in Hato Rey, Puerto Rico.

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.

Popular, Inc. has a Value Score of 67, which is considered to be undervalued.

Popular, Inc.’s price-earnings ratio is 11.9 compared to the industry median at 12.7. This means that it has a lower price relative to its earnings compared to its peers. This makes Popular, Inc. more attractive for value investors.

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

You can read more about Popular, 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.

Hawthorn Bancshares, Inc.’s Value Grade

Value Grade:

Hawthorn Bancshares, Inc. operates as the bank holding company for Hawthorn Bank that provides various banking products and services to families and businesses. It offers checking and savings accounts, and certificates of deposit. The company also provides commercial and industrial, single payment personal, mortgage, installment, and commercial and residential real estate loans. In addition, it provides trust, wealth and treasury management, and brokerage services; and safety deposit boxes, debit cards, and internet banking services. Hawthorn Bancshares, Inc. was formerly known as Exchange National Bancshares, Inc. and changed its name to Hawthorn Bancshares, Inc. in 2007. The company was founded in 1865 and is headquartered in Jefferson City, 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.

Hawthorn Bancshares, Inc. has a Value Score of 73, which is considered to be undervalued.

Hawthorn Bancshares, Inc.’s price-earnings ratio is 10.8 compared to the industry median at 12.7. This means that it has a lower price relative to its earnings compared to its peers. This makes Hawthorn Bancshares, Inc. more attractive for value investors.

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

You can read more about Hawthorn 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.

Inter & Co, Inc.’s Value Grade

Value Grade:

Inter & Co, Inc., through its subsidiaries, engages in the banking and spending, investments, insurance brokerage, and inter shop businesses in Brazil and the United States. The company offers banking products and services, including checking accounts; cards; deposits; loans and advances; and other services, as well as debt collections; foreign exchange and financial services; and global account digital solution. It also provides acquisition, sale, and custody of securities; structures and distributes securities; and operates management of fund portfolios and other assets. In addition, the company offers insurance products including warranties, life, property, and automobile insurance; pension products; and consortium products. Further, it engages in the sale of goods and/or services through digital platform. Inter & Co, Inc. was founded in 1994 and is headquartered in Belo Horizonte, Brazil.

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.

Inter & Co, Inc. has a Value Score of 86, which is considered to be undervalued.

Inter & Co, Inc.’s price-earnings ratio is 7.7 compared to the industry median at 12.7. This means that it has a lower price relative to its earnings compared to its peers. This makes Inter & Co, Inc. more attractive for value investors.

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

You can read more about Inter & Co, 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.

Orrstown Financial Services, Inc.’s Value Grade

Value Grade:

Orrstown Financial Services, Inc. operates as the financial holding company for Orrstown Bank that provides commercial banking and financial advisory services to retail, commercial, non-profit, and government clients in the United States. It accepts various deposits, including checking, savings, time, demand, and money market deposits, as well as certificates of deposit. The company also offers commercial loans, such as commercial real estate, equipment, construction, working capital, and other commercial purpose loans, as well as industrial loans; consumer loans, such as home equity and other consumer loans, as well as home equity lines of credit; residential mortgage loans; agricultural loans; acquisition and development loans; municipal loans; and installment and other loans. In addition, it provides services as trustee, executor, administrator, guardian, managing agent, custodian, and investment advisor, as well as other fiduciary services under the Orrstown Financial Advisors name; and retail brokerage services through a third-party broker/dealer arrangement. Further, the company offers fiduciary, investment advisory, insurance, and brokerage services. The company was founded in 1919 and is headquartered in Harrisburg, Pennsylvania.

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.

Orrstown Financial Services, Inc. has a Value Score of 74, which is considered to be undervalued.

Orrstown Financial Services, Inc.’s price-earnings ratio is 9.7 compared to the industry median at 12.7. This means that it has a lower price relative to its earnings compared to its peers. This makes Orrstown Financial Services, Inc. more attractive for value investors.

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

You can read more about Orrstown 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.

QCR Holdings, Inc.’s Value Grade

Value Grade:

QCR Holdings, Inc., a multi-bank holding company, provides commercial and consumer banking, and trust and asset management services. The company’s deposit products include noninterest-bearing demand, interest-bearing demand, time, and brokered deposits. It also provides various commercial and retail lending/leasing, and investment services to corporations, partnerships, individuals, and government agencies. In addition, the company offers loans to small and mid-sized businesses; business loans, including lines of credit for working capital and operational purposes; term loans for the acquisition of facilities, equipment, and other purposes; commercial and residential real estate loans; and installment and other consumer loans, such as motor vehicle, home improvement, home equity, signature loans, and small personal credit lines, as well as issuance of trust preferred securities. QCR Holdings, Inc. was incorporated in 1993 and is headquartered in Moline, Illinois.

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.

QCR Holdings, Inc. has a Value Score of 77, which is considered to be undervalued.

QCR Holdings, Inc.’s price-earnings ratio is 12.3 compared to the industry median at 12.7. This means that it has a lower price relative to its earnings compared to its peers. This makes QCR Holdings, Inc. more attractive for value investors.

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

You can read more about QCR 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.

WesBanco, Inc.’s Value Grade

Value Grade:

WesBanco, Inc. operates as the bank holding company for WesBanco Bank, Inc. that provides retail banking, corporate banking, personal and corporate trust, brokerage, mortgage banking, and insurance services to individuals and businesses in the United States. It operates in two segments, Community Banking, and Trust and Investment Services. The company accepts interest and non-interest-bearing demand, money market, and savings deposit accounts, as well as certificates of deposit; and offers land and construction, improved property, commercial and industrial, residential real estate mortgage, and consumer loans, as well as home equity lines of credit and overdrafts. It also provides mutual funds and annuities; and property, casualty, life, and title insurance services, as well as holds commercial real estate properties and investment securities. In addition, the company offers letters of credit and international wire services, as well as operates as an investment adviser to a family of mutual funds. It operates through branches and ATM machines in West Virginia, Ohio, western Pennsylvania, Kentucky, southern Indiana, Michigan, and Maryland. WesBanco, Inc. was founded in 1870 and is headquartered in Wheeling, West Virginia.

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.

WesBanco, Inc. has a Value Score of 71, which is considered to be undervalued.

WesBanco, Inc.’s price-earnings ratio is 12.2 compared to the industry median at 12.7. This means that it has a lower price relative to its earnings compared to its peers. This makes WesBanco, Inc. more attractive for value investors.

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

You can read more about WesBanco, 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.

• California BanCorp stock has a Value Grade of B.
• Popular, Inc. stock has a Value Grade of B.
• Hawthorn Bancshares, Inc. stock has a Value Grade of B.
• Inter & Co, Inc. stock has a Value Grade of A.
• Orrstown Financial Services, Inc. stock has a Value Grade of B.
• QCR Holdings, Inc. stock has a Value Grade of B.
• WesBanco, 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.

• 7 Undervalued Banks Stocks for Tuesday, August 18
• Is Avidbank Holdings, Inc. (AVBH) Overvalued?
• Is Avidia Bancorp, Inc. (AVBC) Overvalued?
• Is BayCom Corp (BCML) 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.