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 Thursday, September 10, 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.

Capital Bancorp, Inc.’s Value Grade

Value Grade:

Capital Bancorp, Inc. operates as the bank holding company for Capital Bank, N.A., provides various banking products and services to businesses, not-for-profit associations, and entrepreneurs in the United States. It operates through four divisions: Commercial Banking, Capital Bank Home Loans, OpenSky, Windsor Advantage. The company offers a range of deposit products, including checking and savings, time, interest bearing and noninterest-bearing demand, and money market accounts, as well as certificates of deposit; and secured, partially secured, and unsecured credit cards. It also originates residential mortgages; issues trust preferred securities; and provides residential and commercial real estate, construction, and commercial and industrial loans; servicing, processing, and packaging of Small Business Administration and U.S. Department of Agriculture loans; as well as other consumer loans, such as term loans, car loans, and boat loans to small to medium-sized businesses, professionals, real estate investors, small residential builders and individuals, and financial institution clients, including Capital Bank. Capital Bancorp, Inc. was founded in 1974 and is headquartered in Rockville, 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.

Capital Bancorp, Inc. has a Value Score of 81, which is considered to be undervalued.

When you look at Capital Bancorp, Inc.’s price-to-sales ratio at 2.48 compared to the industry median at 3.46, this company has a lower price relative to revenue compared to its peers. This could make Capital Bancorp, Inc.’s stock more attractive for value investors.

Capital Bancorp, Inc.’s price-earnings ratio is 10.50 compared to the industry median at 12.45. This means it has a lower share price relative to earnings compared to its peers. This could make Capital 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. Capital Bancorp, Inc.’s shareholder yield is higher than its industry median ratio of 2.35%. 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. Capital Bancorp, Inc.’s price-to-book ratio is higher than its industry median ratio of 1.25. This could make Capital Bancorp, Inc. less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Capital 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. Capital Bancorp, Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 14.90. This could make Capital Bancorp, Inc. more attractive because the lower P/FCF ratio indicates that Capital 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.

The First Bancorp, Inc.’s Value Grade

Value Grade:

The First Bancorp, Inc. operates as the bank holding company for First National Bank that provides a range of banking products and services to individual and corporate customers. It accepts various deposit products, including demand, NOW, time, savings, money market, and certificates of deposit accounts. The company also provides commercial loans, such as mortgage loans to finance investments in real property, which includes retail spaces, offices, industrial buildings, hotels, educational facilities, and other specific or mixed use properties; commercial real estate non-owner occupied loans; commercial construction to finance construction in a mix of owner- and nonowner occupied commercial real estate properties; and commercial and industrial loans, including revolving and term loans for financing working capital and/or capital investment. In addition, it offers commercial multifamily loans; residential real estate term and construction loans; loans to municipalities in Maine for capitalized expenditures, construction projects, or tax anticipation notes; home equity revolving and term loans; and personal lines of credit and amortizing loans for various purposes, such as autos, recreational vehicles, debt consolidation, personal expenses, or overdraft protection. Further, the company offers private banking, financial planning, investment management, and trust services to individuals, businesses, non-profit organizations, and municipalities, as well as brokerage, annuity, and various insurance products. It operates through full-service banking offices in Lincoln, Knox, Waldo, Penobscot, Hancock, and Washington counties in the Mid-Coast, Eastern, and Down East regions of Maine. The company was formerly known as First National Lincoln Corporation and changed its name to The First Bancorp, Inc. in April 2008. The First Bancorp, Inc. was founded in 1864 and is based in Damariscotta, Maine.

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 First Bancorp, Inc. has a Value Score of 66, which is considered to be undervalued.

The First Bancorp, Inc.’s price-earnings ratio is 10.4 compared to the industry median at 12.5. This means that it has a lower price relative to its earnings compared to its peers. This makes The First Bancorp, Inc. more attractive for value investors.

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

You can read more about The First 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.

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 84, which is considered to be undervalued.

Inter & Co, Inc.’s price-earnings ratio is 8.3 compared to the industry median at 12.5. 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 1.25.

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.

Mechanics Bancorp’s Value Grade

Value Grade:

Mechanics Bancorp operates as the holding company for Mechanics Bank that provides banking services in California, Oregon, Washington, and Hawaii.It offers various checking and savings accounts, retirement accounts, money market accounts, time certificates of deposit, and safe deposit boxes. The company also provides home loans, auto loans, term loans and lines of credit, owner occupied real estate lending services, small business lending loans, multi-family lending services; mortgage and consumer lending loans; commercial real estate loans; residential construction loans; private banking, such as loan program, personal lines of credit and investment management and trust lines of credit. In addition, it offers unsecured consumer installment loans and personal reserve accounts; automated bill payments, remote and mobile deposit capture, automated clearing house origination, wire transfer, lockbox, payee positive pay, and direct deposit; digital banking. Further, the company provides real estate, escrow services, title, labor unions, nonprofits and property management services. Mechanics Bancorp was founded in 1905 and is headquartered in Walnut Creek, 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.

Mechanics Bancorp has a Value Score of 72, which is considered to be undervalued.

Mechanics Bancorp’s price-earnings ratio is 12.6 compared to the industry median at 12.5. This means that it has a higher price relative to its earnings compared to its peers. This makes Mechanics Bancorp less attractive for value investors.

Mechanics Bancorp’s price-to-book ratio is lower than its peers. This could make Mechanics Bancorp fairly attractive for value investors when compared to the industry median at 1.25.

You can read more about Mechanics 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.

OFG Bancorp’s Value Grade

Value Grade:

OFG Bancorp, a financial holding company, provides a range of banking and financial services in the United States. It operates through three segments: Banking, Wealth Management, and Treasury. The company offers savings accounts, certificates of deposit, individual retirement accounts personal, and commercial non-interest and interest-bearing checking accounts; time deposit products; and corporate trust services. It also provides commercial loans, auto loans, mortgage loans, as well as consumer loans, such as personal loans, residential solar panel loans, credit cards, lines of credit, and other loans; mortgage banking services; sale of loans and securitization activities; wealth management activities comprising securities brokerage, insurance agency, captive reinsurance, trust services, and other financial services; and various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, stocks, and bonds to retail and institutional clients. In addition, the company’s portfolio consists of mortgage-backed securities, obligations of U.S. government-sponsored agencies, U.S. Treasury securities, and money market instruments; and engages in the asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives, and borrowings. The company was founded in 1964 and is headquartered in San Juan, 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.

OFG Bancorp has a Value Score of 75, which is considered to be undervalued.

OFG Bancorp’s price-earnings ratio is 10.3 compared to the industry median at 12.5. This means that it has a lower price relative to its earnings compared to its peers. This makes OFG Bancorp more attractive for value investors.

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

You can read more about OFG 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.

Private Bancorp of America, Inc.’s Value Grade

Value Grade:

Private Bancorp of America, Inc. operates as the bank holding company for CalPrivate Bank that provides banking products and services to individuals and businesses in California. The company offers checking and savings, mobile deposit, money market, certificate of deposit, and retirement accounts; lending services, including commercial real estate loans, commercial and industrial loans, and government-guaranteed lending programs; ATM and debit cards, and credit cards; and safe deposit boxes. It also provides online business banking services, such as online tools, specialized features, deposit one remote deposit capture, bill pay, account reconciliation, ACH origination, and positive pay; and business solutions comprising zero balance accounts, sweep accounts, wire transfer services, cash vault services, business mobile deposit, business credit cards, merchant services, and funds management. In addition, the company offers legal services specialties, wealth management, and impact checking services. Private Bancorp of America, Inc. was founded in 2006 and is headquartered in La Jolla, 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.

Private Bancorp of America, Inc. has a Value Score of 65, which is considered to be undervalued.

Private Bancorp of America, Inc.’s price-earnings ratio is 11.8 compared to the industry median at 12.5. This means that it has a lower price relative to its earnings compared to its peers. This makes Private Bancorp of America, Inc. more attractive for value investors.

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

You can read more about Private Bancorp of America, 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.

River City Bank’s Value Grade

Value Grade:

River City Bank, together with its subsidiaries, provides various banking products and services. The company offers checking, savings, and term certificate accounts. It also provides personal, consumer, commercial real estate, commercial, commercial, agriculture, and residential mortgage loans; and home equity lines of credit. In addition, the company offers cash management services; lockbox, integrated payables, clean energy financing and solutions, and premier banking services; debit and credit cards; and online and mobile banking services. The company serves agribusiness, construction, healthcare, manufacturing and distribution, nonprofits, professional services, property management, and representative payee industries. The company was formerly known as RCB Corporation and changed its name to River City Banki in November 2010. River City Bank was incorporated in 1963 and is headquartered in Sacramento, 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.

River City Bank has a Value Score of 85, which is considered to be undervalued.

River City Bank’s price-earnings ratio is 9.7 compared to the industry median at 12.5. This means that it has a lower price relative to its earnings compared to its peers. This makes River City Bank more attractive for value investors.

River City Bank’s price-to-book ratio is lower than its peers. This could make River City Bank fairly attractive for value investors when compared to the industry median at 1.25.

You can read more about River City Bank’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.

• Capital Bancorp, Inc. stock has a Value Grade of A.
• The First Bancorp, Inc. stock has a Value Grade of B.
• Inter & Co, Inc. stock has a Value Grade of A.
• Mechanics Bancorp stock has a Value Grade of B.
• OFG Bancorp stock has a Value Grade of B.
• Private Bancorp of America, Inc. stock has a Value Grade of B.
• River City Bank stock has a Value Grade of A.

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 Wednesday, September 09
• Is Rhinebeck Bancorp, Inc. (RBKB) Overvalued?
• Why Coastal Financial Corporation’s (CCB) Stock Is Down 6.00%
• 6 Undervalued Banks Stocks for Tuesday, September 08

AAII Disclaimer

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