In this article, we will look at some of the most undervalued banking stocks currently offering attractive upside potential for investors. On April 14, Leslie Picker from CNBC reported that bank shares saw varied results after the first-quarter earnings reports. Three leading banks, namely JPMorgan, Wells Fargo, and Citigroup, released their earnings with differing responses from the market. Wells Fargo lagged the other two, with revenue and net interest income falling short of expectations, leading to a 6.7% decline in its stock price. Shares of JPMorgan were down by roughly 0.8% after the bank cut its fiscal 2022 net interest income forecast by $103 billion amid rising rates. Citigroup was the clear winner in the race, delivering positive results on all counts and witnessing its stock price rise by 0.8%.
Credit quality was a major focus on all earnings calls, especially for private credit. JPMorgan CEO Jamie Dimon highlighted that credit quality has not deteriorated significantly, but expressed concerns about pockets of weakness, especially in leveraged lending, where he anticipates increased variability in performance. Wells Fargo reported lending worth $36.2 billion to private credit funds, which account for 23% of their total risk exposure.
It is important for investors to keep track of credit risks going forward, as the industry faces higher provisions and rate headwinds entering the latter part of the year. With that background, let’s explore our 10 Most Undervalued Bank Stocks to Buy Now.
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Our Methodology
To identify relevant stocks for this article, we screened U.S.-listed banks with market capitalizations above $2 billion. We narrowed down our search to include banks with a trailing Price-to-Book ratio below 1.0 and a forward Price-to-Earnings multiple below 15. Also, we only shortlisted stocks with at least 10% upside potential according to consensus, as of April 16 closing. Finally, we selected 10 stocks with the highest upside and ranked them in ascending order.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. Simmons First National Corp. (NASDAQ:SFNC)
Simmons First National Corp. (NASDAQ:SFNC) is one of the 10 most undervalued bank stocks to buy now.
On April 6, Simmons First National Corp. (NASDAQ:SFNC) stated that its Round-Up auto-savings product generated savings totaling more than $5.9 million for over 25,000 individuals in the year 2025. This helps highlight the importance of forming healthy financial habits during America Saves Week, all due to the simple act of saving money.
The service automatically deposits the extra pennies into the second bank account after rounding up purchases made through a debit card to the nearest dollar amount. The Chief Deposit Officer of Simmons Bank, Joshua Jensen, stated that such services make saving efforts painless since they do not require any effort on the customer’s part.
On March 31, Brian Wilczynski from Morgan Stanley reduced the price target on Simmons First National Corp. (NASDAQ:SFNC) from $23 to $21 while maintaining an Equal Weight rating on the stock.
The analyst highlighted that stocks in the banking sector under coverage have fallen by 5% over the last 30 days due to concerns about the impact of the Middle East crisis on economic growth and inflation. Wilczynski plans to reduce price targets for banking stocks by 9% due to higher risks.
Simmons First National Corp. (NASDAQ:SFNC) offers banking and financial products, as well as other related services, to individuals and organizations. It provides loans, checking and savings accounts, warehouse and SBA lending, insurance, credit cards, and more. Its product and services portfolio also consists of safe deposit boxes, ATM services, mobile banking, and brokerage, to name a few.
9. Associated Banc-Corp (NYSE:ASB)
Associated Banc-Corp (NYSE:ASB) is one of the 10 most undervalued bank stocks to buy now.
On April 1, Associated Banc-Corp (NYSE:ASB) announced that the merger with American National Corp., which has a banking subsidiary by the name of American National Bank, is officially complete. This merger is seen as offering better growth opportunities for Associated Banc-Corp by incorporating its competitive strengths into American National’s focus on its customers and geographical advantages.
It also reflects upon the organization’s effective inorganic growth strategy, making it an attractive investment option within the banking space. The deal is indeed a fitting culmination of an eventful year for Associated Banc-Corp, where relationship loans, record customer additions, and excellent credit ratings ensured that 2025 would be its best year yet.
Andy Harmening, the President and CEO of Associated Banc-Corp, stated that this partnership is a reaffirmation of the solid growth trajectory, while it maintains a personal touch with its customers. All systems, branches, and customers of American National will be integrated into those of Associated in the third quarter of 2026.
It intends to rename all existing branches after the transition process has been completed. In the wake of the merger, the former Executive Co-Chairperson and CEO of American National Bank, Wende Kotouc, will be part of the Associated Board of Directors.
Associated Banc-Corp (NYSE:ASB) operates as a bank holding company that offers several banking and non-banking products and services. It provides lending solutions, deposit and transactional solutions, cash and deposit management, and other related services. Other offerings include leasing, asset management, residential mortgages, equipment finance, and more.
8. WesBanco Inc. (NASDAQ:WSBC)
WesBanco Inc. (NASDAQ:WSBC) is one of the 10 most undervalued bank stocks to buy now.
On April 7, Jon Arfstrom from RBC Capital increased the price target on WesBanco Inc. (NASDAQ:WSBC) from $36 to $38 while maintaining a Sector Perform rating on the stock based on earnings reviews of the first quarter for regional banks. It is essential to mention that the sentiment has not really changed in comparison to the point of view of the last quarter’s earnings results.
RBC remains very positive about the fundamentals that will lead to the success of the earnings reports, which will be characterized by an increase in loans and revenues. The positive sentiment caused by the favorable loan situation, regulations, and fundamentals may bring great success in the top line, thanks to operational leverage in 2026. These factors offer good enough reasons to look out for this undervalued banking stock, which currently offers an impressive upside potential to investors.
Back on March 12, WesBanco Inc. (NASDAQ:WSBC) unveiled plans for expanding its commercial banking operations into high-potential South Florida regions, starting with Palm Beach and Broward counties. The company is pursuing an organic growth path by targeting its services to clients in relationship-based regions.
According to Jeff Jackson, President and CEO of WesBanco, South Florida regions are crucial growth drivers due to their relationship management skills and expertise within the region. WesBanco has appointed Eddy Rodriguez as its EVP and Regional President for South Florida.
WesBanco Inc. (NASDAQ:WSBC) is a community-focused bank delivering retail and commercial banking services, along with wealth management, brokerage, and insurance offerings. It also lends money for community development projects as well as tax credit loans.
7. F.N.B. Corp. (NYSE:FNB)
F.N.B. Corp. (NYSE:FNB) is one of the 10 most undervalued bank stocks to buy now.
Its efficient capital deployment makes it a quality name in the banking segment. On April 15, F.N.B. Corp. (NYSE:FNB) took two significant initiatives pertaining to the deployment of capital based on its very good financial performance in April. The corporation decided to distribute dividends of 13 cents per share on a quarterly basis, which is a penny more than its previous level.
Furthermore, it has also authorized a $250 million share repurchase program. Both decisions have been made with the unanimous approval of the board, due to the effective execution of their long-term strategy. The dividend will be paid out on June 15 for those shareholders who are recorded on the books as of June 1.
F.N.B. Corp. (NYSE:FNB) remains an undervalued banking stock offering growth prospects to investors through various commercial initiatives. Back on March 20, it announced a joint venture with Penn State, making FNB the designated and exclusive banking partner for all Penn State campuses that have an aggregate enrollment of almost 90,000 students and employ around 36,000 employees.
The entire banking partnership includes on-campus and online banking solutions offered by FNB through its innovative eStore technology system, along with other financial assistance programs and treasury management services. In addition, FNB has also become a Penn State Keystone Partner, gaining premium placement for its brand image and making greater contributions to the university’s programming efforts.
F.N.B. Corp. (NYSE:FNB) offers a range of financial products and services to individuals, governments, and businesses. It provides business banking, investment advisory, mortgage and consumer lending, insurance products, and more. Other offerings include business credit, securities brokerage, mobile and online banking, and capital market solutions.
6. Prosperity Bancshares Inc. (NYSE:PB)
Prosperity Bancshares Inc. (NYSE:PB) is one of the 10 most undervalued bank stocks to buy now.
On April 7, Bank of America Securities reduced the price target on Prosperity Bancshares Inc. (NYSE:PB) from $81 to $77, yielding more than 10% upside potential at the prevailing level. The firm maintained a Neutral rating on the stock, as it lowered targets for regional banks by an average of 3%, reflecting the high earnings per share risk and cost of equity.
Earlier on March 31, Morgan Stanley also reduced its price target on Prosperity Bancshares Inc. (NYSE:PB) from $91 to $83 while maintaining an Overweight rating on the stock. Despite the downward price target revision, there is more than 18% upside in the offering, which makes Prosperity a standout name within the banking segment.
According to the firm, bank shares dropped by about 5% in the last month, reflecting a worried outlook on the impact of the Middle East conflict on inflation and growth, along with credit issues. Price targets for the companies in this space were also lowered by 9%, considering increased risk amid lower valuation multiples.
Prosperity Bancshares Inc. (NYSE:PB) offers financial solutions to individuals and enterprises. These include deposits, mortgages, agricultural lending, auto loans, and more. Additionally, it provides digital banking platforms, debit and credit cards, retail brokerage, mortgage services, treasury management, and wealth management solutions.
While we acknowledge the potential of PB to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PB and that has 100x upside potential, check out our report about the cheapest AI stock.
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