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 Friday, September 11, 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.

Bank of America Corporation’s Value Grade

Value Grade:

Bank of America Corporation, through its subsidiaries, provides various financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates through four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets. The Consumer Banking segment offers traditional and money market savings accounts, certificates of deposit and IRAs, checking accounts, and investment accounts and products; credit and debit cards; residential mortgages and home equity loans; and direct and indirect loans. The GWIM segment provides investment management, brokerage, banking, and trust and retirement products and services; wealth management solutions; and customized solutions, including specialty asset management services. The Global Banking segment offers lending products and services, including commercial loans, leases, commitment facilities, trade finance, and commercial real estate and asset-based lending; treasury solutions, and underwriting and advisory services. The Global Markets segment provides market-making, financing, securities clearing, settlement, and custody services; securities and derivative products; and risk management products using interest rate, equity, credit, currency and commodity derivatives, foreign exchange, fixed-income, and mortgage-related products. Bank of America Corporation was founded in 1784 and is based in Charlotte, North Carolina.

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.

Bank of America Corporation has a Value Score of 77, which is considered to be undervalued.

When you look at Bank of America Corporation’s price-to-sales ratio at 4.05 compared to the industry median at 3.48, this company has a higher price relative to revenue compared to its peers. This could make Bank of America Corporation’s stock less attractive for value investors.

Bank of America Corporation’s price-earnings ratio is 14.50 compared to the industry median at 12.50. This means it has a higher share price relative to earnings compared to its peers. This could make Bank of America 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. Bank of America 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. Bank of America Corporation’s price-to-book ratio is higher than its industry median ratio of 1.26. This could make Bank of America Corporation less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Bank of America Corporation’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Bank of America Corporation’s price-to-free-cash-flow ratio is lower than its industry median ratio of 15.00. This could make Bank of America Corporation more attractive because the lower P/FCF ratio indicates that Bank of America 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.

The Bank of Nova Scotia’s Value Grade

Value Grade:

The Bank of Nova Scotia provides various banking products and services in Canada, the United States, Mexico, Peru, Chile, Colombia, the Caribbean and Central America, and internationally. It operates through Canadian Banking, International Banking, Global Wealth Management, and Global Banking and Markets segments. The company offers financial advice and solutions, and banking products, including debit and credit cards, chequing and saving accounts, investments, mortgages, loans, and insurance to individuals; and retail automotive financing solutions. It also provides business banking solutions comprising lending, deposit, cash management, and trade finance solutions to small, medium, and large businesses. In addition, it provides wealth management advice and solutions, including online brokerage, mobile investment, full-service brokerage, trust, private banking, and private investment counsel services; and retail mutual funds, exchange traded funds, liquid alternatives, and institutional funds. The company was founded in 1832 and is headquartered in Toronto, Canada.

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 Nova Scotia has a Value Score of 63, which is considered to be undervalued.

The Bank of Nova Scotia’s price-earnings ratio is 17.0 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 The Bank of Nova Scotia less attractive for value investors.

The Bank of Nova Scotia’s price-to-book ratio is lower than its peers. This could make The Bank of Nova Scotia more attractive for value investors when compared to the industry median at 1.26.

You can read more about The Bank of Nova Scotia’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.

Sierra Bancorp’s Value Grade

Value Grade:

Sierra Bancorp operates as the bank holding company for Bank of the Sierra that provides retail and commercial banking products and services to individuals and businesses in California. It accepts various deposit products, such as checking accounts, savings accounts, money market demand accounts, time deposits, retirement accounts, and sweep accounts. The company’s loan products include real estate, commercial, mortgage warehouse, agricultural, and consumer loans. It also offers automated teller machines; electronic point-of-sale payment alternatives; multiple account access options; online account opening platform; online banking with bill-pay and mobile banking capabilities, including mobile check deposit; online lending solutions for consumers and small businesses; customer service center services; an automated telephone banking system; and remote deposit capture and payroll services. Sierra Bancorp was founded in 1977 and is headquartered in Porterville, 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.

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

Sierra Bancorp’s price-earnings ratio is 12.0 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 Sierra Bancorp more attractive for value investors.

Sierra Bancorp’s price-to-book ratio is lower than its peers. This could make Sierra Bancorp more attractive for value investors when compared to the industry median at 1.26.

You can read more about Sierra 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.

Muncy Columbia Financial Corporation’s Value Grade

Value Grade:

Muncy Columbia Financial Corporation operates as the bank holding company for Journey Bank that provides banking products and services in Pennsylvania. It offers deposit accounts, including time and demand deposit, checking, money market, interest checking, individual retirement, and repo sweep, as well as statement savings and certificates of deposit; and lending products, such as commercial, consumer, and mortgage loans. The company also provides trust services comprising administration of various estates, pension plans, self-directed IRA's, and other services; and financial services, which include brokerage, stocks, bonds, and other non-insured financial products. It serves individuals and small to medium-sized businesses. The company was formerly known as CCFNB Bancorp, Inc. and changed its name to Muncy Columbia Financial Corporation in November 2023. Muncy Columbia Financial Corporation was founded in 1926 and is headquartered in Bloomsburg, 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.

Muncy Columbia Financial Corporation has a Value Score of 65, which is considered to be undervalued.

Muncy Columbia Financial Corporation’s price-earnings ratio is 10.9 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 Muncy Columbia Financial Corporation more attractive for value investors.

Muncy Columbia Financial Corporation’s price-to-book ratio is lower than its peers. This could make Muncy Columbia Financial Corporation more attractive for value investors when compared to the industry median at 1.26.

You can read more about Muncy Columbia 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.

Isabella Bank Corporation’s Value Grade

Value Grade:

Isabella Bank Corporation operates as the bank holding company for Isabella Bank that provides banking and wealth management services to businesses, institutions, and individuals and their families in Michigan, the United States. The company offers deposit products, including checking and savings accounts; and certificates of deposit, direct deposits, and cash management services. Its loan portfolio comprises commercial, agricultural, and residential real estate loans, as well as consumer loans, including secured and unsecured personal loans. In addition, the company provides mobile and internet banking, investment management, trust and estate services, automated teller machines, and insurance products. Isabella Bank Corporation was founded in 1903 and is headquartered in Mount Pleasant, Michigan.

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.

Isabella Bank Corporation has a Value Score of 63, which is considered to be undervalued.

Isabella Bank Corporation’s price-earnings ratio is 14.3 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 Isabella Bank Corporation less attractive for value investors.

Isabella Bank Corporation’s price-to-book ratio is higher than its peers. This could make Isabella Bank Corporation less attractive for value investors when compared to the industry median at 1.26.

You can read more about Isabella Bank 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.

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 83, which is considered to be undervalued.

Northrim BanCorp, Inc.’s price-earnings ratio is 8.6 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 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 1.26.

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.

River Financial Corporation’s Value Grade

Value Grade:

River Financial Corporation operates as the bank holding company for River Bank & Trust that provides commercial and consumer banking services to small to medium-sized businesses, organizations, entrepreneurs, and individuals in Alabama and the Florida Panhandle. The company accepts demand, time, savings, and other deposits, including negotiable orders of withdrawal accounts, and amortization and prepayments of loans and investment; and interest-bearing transaction accounts, money market accounts, and certificates of deposit. It also offers commercial real estate term loans, residential mortgage loans, and construction and land development loans; home equity lines of credit; commercial and industrial loans; loan approval; and consumer loans that consist of loans to purchase automobiles and other consumer durable goods. In addition, the company provides investment brokerage; commercial and retail online banking, automated bill payment, mobile banking, and remote deposit capture services; and loans and investment amortization and prepayment services. River Financial Corporation was founded in 2006 and is headquartered in Prattville, Alabama.

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 Financial Corporation has a Value Score of 78, which is considered to be undervalued.

River Financial Corporation’s price-earnings ratio is 7.4 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 River Financial Corporation more attractive for value investors.

River Financial Corporation’s price-to-book ratio is higher than its peers. This could make River Financial Corporation less attractive for value investors when compared to the industry median at 1.26.

You can read more about River 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 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.

• Bank of America Corporation stock has a Value Grade of B.
• The Bank of Nova Scotia stock has a Value Grade of B.
• Sierra Bancorp stock has a Value Grade of B.
• Muncy Columbia Financial Corporation stock has a Value Grade of B.
• Isabella Bank Corporation stock has a Value Grade of B.
• Northrim BanCorp, Inc. stock has a Value Grade of A.
• River Financial Corporation 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 Thursday, September 10
• 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%

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.