Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 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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6 Undervalued Banks Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 6 undervalued stocks in the Banks industry for Monday, September 14, 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.

Coastal Financial Corporation’s Value Grade

Value Grade:

Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank that provides various banking products and services to consumers and small and medium-sized businesses in the Puget Sound region in Washington. It accepts a range of deposit products, including demand and savings accounts, time deposits, and money market accounts. The company also offers commercial and industrial loans, such as term loans, commercial lines of credit, capital call lines working capital loans, equipment financing, borrowing base loans, small business administration loans, and other loan products; owner and non-owner-occupied real estate loans, and multi-family residential loans; construction and development loans; residential real estate loans; and consumer and other loans, including automobile, boat and recreational vehicle, and secured term loans, as well as personal lines of credit, including overdraft protection. In addition, it provides remote deposit capture, online and mobile banking, and direct and reciprocal deposit services; and debit cards. Further, the company offers business accounts and cash management services, including business checking and savings accounts, and treasury services, as well as Banking as a Service (BaaS), a platform that allows digital financial service partners to offer their customers banking services. The company was founded in 1997 and is headquartered in Everett, Washington.

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.

Coastal Financial Corporation has a Value Score of 68, which is considered to be undervalued.

When you look at Coastal Financial Corporation’s price-to-sales ratio at 1.98 compared to the industry median at 3.48, this company has a lower price relative to revenue compared to its peers. This could make Coastal Financial Corporation’s stock 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. Coastal Financial Corporation’s shareholder yield is lower 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. Coastal Financial Corporation’s price-to-book ratio is higher than its industry median ratio of 1.27. This could make Coastal Financial Corporation less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Coastal 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. Coastal Financial Corporation’s price-to-free-cash-flow ratio is lower than its industry median ratio of 14.95. This could make Coastal Financial Corporation more attractive because the lower P/FCF ratio indicates that Coastal 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.

C&F; Financial Corporation’s Value Grade

Value Grade:

C&F; Financial Corporation operates as a bank holding company for Citizens and Farmers Bank that provides banking services to individuals and businesses. It operates through three segments: Community Banking, Mortgage Banking, and Consumer Finance. The Community Banking segment offers various banking services, such as checking and savings deposit accounts; and business, real estate, development, mortgage, home equity, and installment loans. This segment also provides ATMs, Internet and mobile banking, peer-to-peer payment capabilities, debit cards, safe deposit box rentals, notary public, electronic transfer, and other customary bank services, as well as wealth management services; and engages in owning equity interests in an independent insurance agency, and a full-service title and settlement agency. The Mortgage Banking segment offers various residential mortgage loans, which are originated for sale to investors in the secondary mortgage market; originates conventional mortgage loans, mortgage loans insured by the Federal Housing Administration, and mortgage loans guaranteed by the United States Department of Agriculture and the Veterans Administration. This segment also provides mortgage loan origination functions as a service to third party mortgage lenders and other community banks; and ancillary mortgage loan production services to third parties for residential appraisals. The Consumer Finance segment offers automobile financing through lending programs to serve customers in both the prime and non-prime markets. C&F; Financial Corporation was founded in 1927 and is based in Toano, 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.

C&F; Financial Corporation has a Value Score of 83, which is considered to be undervalued.

C&F; Financial Corporation’s price-earnings ratio is 10.6 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 C&F; Financial Corporation more attractive for value investors.

C&F; Financial Corporation’s price-to-book ratio is higher than its peers. This could make C&F; Financial Corporation less attractive for value investors when compared to the industry median at 1.27.

You can read more about C&F; 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.

Dime Commercial Bancshares, Inc.’s Value Grade

Value Grade:

Dime Commercial Bancshares, Inc. operates as the holding company for Dime Community Bank that engages in the provision of various commercial banking and financial services in the United Stated. The company accepts time, savings, and demand deposits from the businesses, consumers, and local municipalities. It also provides commercial real estate loans; multi-family mortgage loans; residential mortgage loans; letters of credit; secured and unsecured commercial and consumer loans; lines of credit; home equity loans; and construction and land loans. In addition, the company invests in Federal Home Loan Bank, Federal National Mortgage Association, Government National Mortgage Association, and Federal Home Loan Mortgage Corporation mortgage-backed securities, collateralized mortgage obligations, and other asset backed securities; U.S. Treasury securities; New York state and local municipal obligations; U.S. government-sponsored enterprise securities; and corporate bonds. Further, the company offers certificate of deposit account registry services and insured cash sweep programs; federal deposit insurance corporation insurance; merchant credit and debit card processing, automated teller machines, cash and treasury management services, escrow account services, lockbox processing, online banking services, remote deposit capture, safe deposit boxes, and individual retirement accounts; investment products and services through a third-party broker dealer; and title insurance broker services for small and medium sized businesses, and municipal and consumer relationships. The company was formerly known as Dime Community Bancshares, Inc. and changed its name to Dime Commercial Bancshares, Inc. in May 2026. Dime Commercial Bancshares, Inc. was founded in 1910 and is headquartered in Hauppauge, 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.

Dime Commercial Bancshares, Inc. has a Value Score of 64, which is considered to be undervalued.

Dime Commercial Bancshares, Inc.’s price-earnings ratio is 14.8 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 Dime Commercial Bancshares, Inc. less attractive for value investors.

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

You can read more about Dime Commercial 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.

Hilltop Holdings Inc.’s Value Grade

Value Grade:

Hilltop Holdings Inc. provides business and consumer banking services. The company operates through three segments: Banking, Broker-Dealer, and Mortgage Origination. The Banking segment offers savings, checking, interest-bearing checking, and money market accounts; certificates of deposit; lines and letters of credit, home improvement and equity loans, loans for purchasing and carrying securities, term, agricultural and commercial real estate, equipment loans, and other lending products; and mortgage, commercial and industrial loans, and term and construction finance. It provides treasury management, asset management, check cards, safe deposit boxes, online banking, bill pay, and overdraft privilege services; and estate planning, management and administration, investment portfolio management, employee benefit accounts, and individual retirement accounts services, as well as automated teller machines. The Broker-Dealer segment offers public finance services that assist public entities in originating, syndicating, and distributing securities of municipalities and political subdivisions; specialized advisory and investment banking services; advice and guidance to arbitrage rebate compliance, portfolio management, and local government investment pool administration; advisory services and products for derivatives and commodities; agricultural insurance; and sells, trades in, and underwrites U.S. government and government agency bonds, corporate bonds, and municipal bonds; mortgage-backed, asset-backed, and commercial mortgage-backed securities and structured products; and provides asset and liability management advisory, clearing, retail, and securities lending services. The Mortgage Origination segment offers fixed and adjustable rate mortgages, jumbo, new construction, Federal Housing Administration, Veterans Affairs, and United States Department of Agriculture loans. Hilltop Holdings Inc. was incorporated in 1998 and is headquartered in Dallas, Texas.

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.

Hilltop Holdings Inc. has a Value Score of 88, which is considered to be undervalued.

Hilltop Holdings Inc.’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 Hilltop Holdings Inc. less attractive for value investors.

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

You can read more about Hilltop 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.

Parke Bancorp, Inc.’s Value Grade

Value Grade:

Parke Bancorp, Inc. operates as the bank holding company for Parke Bank that provides personal and business financial services to individuals and small to mid-sized businesses. Its accepts various deposit products, including checking, savings, money market, time, and other traditional deposit services, as well as individual retirement accounts and certificates of deposit. The company’s loan portfolio consists of residential, commercial real estate, construction, commercial and industry, and consumer loans. It also offers debit cards, internet banking, and online bill payment services. Parke Bancorp, Inc. was founded in 1999 and is headquartered in Washington Township, 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.

Parke Bancorp, Inc. has a Value Score of 76, which is considered to be undervalued.

Parke Bancorp, Inc.’s price-earnings ratio is 9.0 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 Parke Bancorp, Inc. more attractive for value investors.

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

You can read more about Parke 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 79, 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 1.27.

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 6 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.

• Coastal Financial Corporation stock has a Value Grade of B.
• C&F; Financial Corporation stock has a Value Grade of A.
• Dime Commercial Bancshares, Inc. stock has a Value Grade of B.
• Hilltop Holdings Inc. stock has a Value Grade of A.
• Parke Bancorp, Inc. stock has a Value Grade of B.
• River Financial Corporation stock has a Value Grade of B.

Now that you have a bit more background about each of the 6 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.

• 6 Undervalued Banks Stocks for Friday, September 11
• Why BayFirst Financial Corp.’s (BAFN) Stock Is Up 10.02%
• Why Woori Financial Group Inc.’s (WF) Stock Is Up 5.82%
• 7 Undervalued Banks Stocks for Thursday, September 10

AAII Disclaimer

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