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 18, 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 69, which is considered to be undervalued.

When you look at California BanCorp’s price-to-sales ratio at 3.84 compared to the industry median at 3.45, 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 11.90 compared to the industry median at 12.40. 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 1.26. 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 14.90. 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.

First Busey Corporation’s Value Grade

Value Grade:

First Busey Corporation operates as the bank holding company for Busey Bank that engages in the provision of retail and commercial banking products and services to individual, corporate, institutional, and governmental customers in the United States. The company operates through three segments: Banking, Wealth Management, and FirsTech. It offers demand and savings deposits, money transfers, safe deposit services, individual retirement accounts and other fiduciary services, automated teller machines, and technology-based networks, as well as various loan products, including residential real estate, home equity lines of credit, and consumer loans to individual customers; and commercial, commercial real estate, real estate construction, and agricultural loans, as well as cash management services to corporate customers. The company also provides asset management, investment, brokerage, fiduciary, philanthropic advisory, tax preparation, and farm management services; trust and estate advisory services and financial planning; succession planning and employee retirement plan; and investment strategy consulting services to individuals, businesses, and foundations. In addition, its payment technology solution offers text-based mobile bill pay; interactive voice response; electronic payment concentration delivered to automated clearing house networks, money management, and credit card networks; walk-in payment processing for customers at retail pay agents; customer service payments made over a telephone; direct debit services; merchant services referral solutions; lockbox remittance processing for customers to make payments by mail; and tools for billing, reconciliation, bill reminders, and treasury services. The company was founded in 1868 and is headquartered in Leawood, Kansas.

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.

First Busey Corporation has a Value Score of 69, which is considered to be undervalued.

First Busey Corporation’s price-earnings ratio is 12.6 compared to the industry median at 12.4. This means that it has a higher price relative to its earnings compared to its peers. This makes First Busey Corporation less attractive for value investors.

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

You can read more about First Busey 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.

International Bancshares Corporation’s Value Grade

Value Grade:

International Bancshares Corporation, a multibank financial holding company, engages in the provision of commercial and retail banking services in Texas and the State of Oklahoma. The company accepts checking and saving deposits; and offers commercial, real estate, personal, home improvement, automobile, and other installment and term loans. It also provides international banking services, including letters of credit, commercial and industrial loans, and foreign exchange services. In addition, it offers other banking related services, such as credit cards, safety deposit boxes, collections, escrow, drive up and walk up facilities, and other customary banking services; and internet and mobile banking services, as well as securities products through third party providers. The company offers its banking services through ATM network and retail locations in shopping malls and other places. International Bancshares Corporation was founded in 1966 and is headquartered in Laredo, 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.

International Bancshares Corporation has a Value Score of 68, which is considered to be undervalued.

International Bancshares Corporation’s price-earnings ratio is 10.6 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 International Bancshares Corporation more attractive for value investors.

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

You can read more about International Bancshares 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.

Origin Bancorp, Inc.’s Value Grade

Value Grade:

Origin Bancorp, Inc. operates as a bank holding company for Origin Bank that provides banking and financial services to small and medium-sized businesses, municipalities, and retail clients in Texas, Louisiana, Alabama, and Mississippi. It provides noninterest and interest-bearing checking accounts, savings deposits, money market accounts, and time deposits; and offers commercial real estate, construction and land development, consumer, residential real estate, commercial and industrial, mortgage warehouse, and residential mortgage loans. The company offers personal and commercial property, and casualty insurance products; and internet banking and voice response information, mobile applications, cash management, business credit cards, overdraft protection, direct deposit, safe deposit boxes, automatic account transfers, peer-to-peer electronic pay solutions, and personal financial management solutions; and mobile and online banking, treasury management, mortgage origination and servicing facilities, commercial and consumer loans, and insurance services. The company was founded in 1991 and is headquartered in Ruston, Louisiana.

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.

Origin Bancorp, Inc. has a Value Score of 63, which is considered to be undervalued.

Origin Bancorp, Inc.’s price-earnings ratio is 16.8 compared to the industry median at 12.4. This means that it has a higher price relative to its earnings compared to its peers. This makes Origin Bancorp, Inc. less attractive for value investors.

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

You can read more about Origin 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.

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 64, which is considered to be undervalued.

Private Bancorp of America, Inc.’s price-earnings ratio is 11.8 compared to the industry median at 12.4. 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 1.26.

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.

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 77, which is considered to be undervalued.

Parke Bancorp, Inc.’s price-earnings ratio is 8.9 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 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 1.26.

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.

Renasant Corporation’s Value Grade

Value Grade:

Renasant Corporation operates as a bank holding company for Renasant Bank that provides a range of financial, wealth management, and fiduciary services to retail and commercial customers. The company operates in two segments, Community Banks and Wealth Management. The Community Banks segment offers checking and savings accounts, business and personal loans, asset-based lending, and factoring equipment leasing services, as well as safe deposit and night depository facilities. It also provides commercial, financial, and agricultural loans; equipment financing and leasing; real estate–1-4 family mortgage; real estate–commercial mortgage; real estate–construction loans for the construction of single family residential properties, multi-family properties, and commercial projects; installment loans to individuals; and interim construction loans, as well as automated teller machine (ATM), online and mobile banking, call center, and treasury management services. The Wealth Management segment offers a range of wealth management and fiduciary services, including administration and management of trust accounts, such as personal and corporate benefit accounts, and custodial accounts, as well as accounting and money management for trust accounts. It also provides annuities, mutual funds, and other investment services through a third-party broker-dealer; administrative and compliance services; and qualified retirement plans, IRAs, employee benefit plans, personal trusts, and estates, as well as administrative and compliance services for certain mutual funds. The company was founded in 1904 and is based in Tupelo, Mississippi.

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.

Renasant Corporation has a Value Score of 80, which is considered to be undervalued.

Renasant 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 Renasant Corporation more attractive for value investors.

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

You can read more about Renasant 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.

• California BanCorp stock has a Value Grade of B.
• First Busey Corporation stock has a Value Grade of B.
• International Bancshares Corporation stock has a Value Grade of B.
• Origin Bancorp, Inc. stock has a Value Grade of B.
• Private Bancorp of America, Inc. stock has a Value Grade of B.
• Parke Bancorp, Inc. stock has a Value Grade of B.
• Renasant 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 17
• 6 Undervalued Banks Stocks for Wednesday, September 16
• Does Landmark Bancorp, Inc. (LARK) Have Momentum?
• Is Landmark Bancorp, Inc. (LARK) 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.