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 Thursday, September 03, 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.

BOK Financial Corporation’s Value Grade

Value Grade:

BOK Financial Corporation operates as the financial holding company for BOKF, NA that provides various financial products and services in Oklahoma, Texas, New Mexico, Northwest Arkansas, Colorado, Arizona, and Kansas/Missouri. It operates through three segments: Commercial Banking, Consumer Banking, and Wealth Management. The Commercial Banking segment offers lending, treasury, cash management, and customer commodity risk management products for small businesses, middle market, and larger commercial customers, as well as operates TransFund electronic funds transfer network. The Consumer Banking segment engages in the provision of retail lending and deposit services to small business customers through retail branch network; and mortgage loan origination and servicing activities. The Wealth Management segment offers fiduciary, private bank, insurance, and investment advisory services; and brokerage and trading services primarily related to providing liquidity to the mortgage markets through trading of U.S. government agency mortgage-backed securities and related derivative contracts, as well as underwrites state and municipal securities. The company also provides commercial loans, such as loans for working capital, facilities acquisition or expansion, purchases of equipment, and other needs of commercial customers; and service, healthcare, energy, and other sector loans. In addition, it offers commercial real estate loans for the construction of buildings or other improvements to real estate and property held by borrowers for investment purposes; residential mortgage and personal loans; and personal and small business checking, online bill paying, mobile banking, automated teller machine, and call centers services. The company was founded in 1910 and is headquartered in Tulsa, Oklahoma.

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.

BOK Financial Corporation has a Value Score of 81, which is considered to be undervalued.

When you look at BOK Financial Corporation’s price-to-sales ratio at 3.68 compared to the industry median at 3.49, this company has a higher price relative to revenue compared to its peers. This could make BOK Financial Corporation’s stock less attractive for value investors.

BOK Financial Corporation’s price-earnings ratio is 12.80 compared to the industry median at 12.40. This means it has a higher share price relative to earnings compared to its peers. This could make BOK Financial Corporation less 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. BOK Financial Corporation’s shareholder yield is higher than its industry median ratio of 2.40%. 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. BOK Financial Corporation’s price-to-book ratio is higher than its industry median ratio of 1.25. This could make BOK Financial Corporation less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at BOK Financial Corporation’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. BOK Financial Corporation’s price-to-free-cash-flow ratio is lower than its industry median ratio of 14.80. This could make BOK Financial Corporation more attractive because the lower P/FCF ratio indicates that BOK Financial Corporation 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 69, which is considered to be undervalued.

Popular, Inc.’s price-earnings ratio is 11.5 compared to the industry median at 12.4. 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 1.25.

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.

Financial Institutions, Inc.’s Value Grade

Value Grade:

Financial Institutions, Inc., through its subsidiaries, provides banking and financial services to consumer, commercial, and municipal customers in New York. The company provides checking and savings account programs, including money market accounts, certificates of deposit, sweep investments, and individual retirement and other qualified plan accounts, as well as NOW accounts. It also offers commercial loan products including term loans and lines of credit; short and medium-term commercial loans for working capital, business expansion, and purchase of equipment; commercial business loans; commercial mortgage loans; one-to-four family residential mortgage loans; home improvement loans, closed-end home equity loans, and home equity lines of credit; and consumer loans, such as automobile, secured installment, and other secured and unsecured personal loans, as well as recreational vehicle, boat, personal loans, and deposit account collateralized loans. In addition, it offers investment advisory, wealth management, investment consulting, and retirement plan services, as well as operates a real estate investment trust that holds residential mortgages and commercial real estate loans. Financial Institutions, Inc. was founded in 1817 and is headquartered in Warsaw, 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.

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

Financial Institutions, Inc.’s price-earnings ratio is 10.1 compared to the industry median at 12.4. This means that it has a lower price relative to its earnings compared to its peers. This makes Financial Institutions, Inc. more attractive for value investors.

Financial Institutions, Inc.’s price-to-book ratio is lower than its peers. This could make Financial Institutions, Inc. more attractive for value investors when compared to the industry median at 1.25.

You can read more about Financial Institutions, 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.

Northrim BanCorp, Inc.’s Value Grade

Value Grade:

Northrim BanCorp, Inc. operates as the bank holding company for Northrim Bank that provides commercial banking products and services to businesses and professional individuals. It operates through three segments: Community Banking, Home Mortgage Lending, and Specialty Finance. The company offers noninterest-bearing checking accounts and interest-bearing time deposits, checking and savings accounts, individual retirement and money market deposit accounts, certificates of deposit, and business sweep accounts. It also provides short and medium-term commercial loans, commercial credit lines, construction and real estate loans, and consumer loans, as well as short and medium-term working capital. In addition, the company offers consumer and business online banking, mobile app, and mobile deposits; and debit and credit cards. Further, it provides mobile web and app banking, consumer online account opening, personal finance, online documents, consumer debit cards, business debit cards, my rewards for consumer debit cards, retail lockbox services, card control, corporate purchase cards, integrated payables, home equity advantage access cards, telebanking, and automated teller services. Additionally, the company offers personalized checks at account opening, overdraft protection from a savings account, commercial drive-up banking, automatic transfer and payment, external transfer, bill pay, wire transfer, direct payroll deposit, electronic tax payment, automated clearing house origination and receipt, remote deposit capture, account reconciliation and positive pay, merchant, cash management, annuity, and long-term investment portfolio products and services. It also provides investment advisory, trust, wealth management, factoring, and mortgage services. The company was founded in 1990 and is headquartered in Anchorage, Alaska.

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.

Northrim BanCorp, Inc. has a Value Score of 84, which is considered to be undervalued.

Northrim BanCorp, Inc.’s price-earnings ratio is 8.5 compared to the industry median at 12.4. This means that it has a lower price relative to its earnings compared to its peers. This makes Northrim BanCorp, Inc. more attractive for value investors.

Northrim BanCorp, Inc.’s price-to-book ratio is lower than its peers. This could make Northrim BanCorp, Inc. more attractive for value investors when compared to the industry median at 1.25.

You can read more about Northrim 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.

Wintrust Financial Corporation’s Value Grade

Value Grade:

Wintrust Financial Corporation, a financial holding company, provides community-oriented, personal, and commercial banking services in the United States. It operates through three segments: Community Banking, Specialty Finance, and Wealth Management. The Community Banking segment offers non-interest-bearing deposits, non-brokered interest-bearing transaction accounts, and savings and domestic time deposits; home equity, consumer, and real estate loans; safe deposit facilities; and automatic teller machine, online and mobile banking, and other services. This segment also engages in the retail origination of residential mortgages; provision of lending, deposits, and treasury management services to condominium, homeowner, and community associations; and asset-based lending for middle-market companies. In addition, it provides loan and deposit services to mortgage brokerage companies; lending to restaurant franchisees; direct leasing; small business administration loans; commercial mortgages and construction loans; and financial solutions. The Specialty Finance segment offers commercial and life insurance premiums financing for businesses and individuals; accounts receivable financing, value-added, and out-sourced administrative services, including data processing of payrolls, billing, and cash management services to temporary staffing industry; other specialty finance services; equipment financing through structured loan and lease products; and property and casualty insurance premium financing. The Wealth Management segment provides wealth management services, such as trust and investment, tax-deferred like-kind exchange, asset management, and securities brokerage services. Wintrust Financial Corporation was founded in 1991 and is headquartered in Rosemont, 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.

Wintrust Financial Corporation has a Value Score of 70, which is considered to be undervalued.

Wintrust Financial Corporation’s price-earnings ratio is 12.2 compared to the industry median at 12.4. This means that it has a lower price relative to its earnings compared to its peers. This makes Wintrust Financial Corporation more attractive for value investors.

Wintrust Financial Corporation’s price-to-book ratio is lower than its peers. This could make Wintrust Financial Corporation more attractive for value investors when compared to the industry median at 1.25.

You can read more about Wintrust 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.

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.

• BOK Financial Corporation stock has a Value Grade of A.
• Popular, Inc. stock has a Value Grade of B.
• Financial Institutions, Inc. stock has a Value Grade of B.
• Northrim BanCorp, Inc. stock has a Value Grade of A.
• Wintrust Financial Corporation 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 Wednesday, September 02
• Why Chemung Financial Corporation’s (CHMG) Stock Is Up 5.91%
• Why First United Corporation’s (FUNC) Stock Is Up 5.83%
• Why Inter & Co, Inc.’s (INTR) Stock Is Up 5.28%

AAII Disclaimer

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