Hyperspectral images (HSIs) provide rich spectral information, facilitating many applications, including landcover classification. However, due to the high dimensionality of HSIs, landcover mapping applications usually suffer from the curse of dimensionality, which degrades the efficiency of supervised classifiers due to insufficient training samples. Feature extraction (FE) is a popular dimension reduction strategy for this issue. This paper proposes an unsupervised FE algorithm that involves extracting endmembers and clustering spectral bands. The proposed method first extracts existing endmembers from the HSI data via a vertex component analysis method. Using these endmembers, it subsequently constructs a prototype space (PS) in which each spectral band is represented by a point. Similar/correlated bands in the PS remain near one another, forming several clusters. Therefore, our method, in the next step, clusters spectral bands into multiple clusters via K-means and fuzzy C-means algorithms. Finally, it combines all the spectral bands in the same cluster using a weighted average operator to decrease the high dimensionality. The extracted features were evaluated by applying an SVM classifier. The experimental results confirmed the superior performance of the proposed method compared with five state-of-the-art dimension reduction algorithms. It outperformed these algorithms in terms of classification accuracy on three widely used hyperspectral images (Indian Pines, KSC, and Pavia Centre). The suggested technique also showed comparable or even stronger performance (up to 9% improvement) compared with its supervised competitor. Notably, the proposed method exhibited higher accuracy even when only a limited number of training samples were available for supervised classification. Using only five training samples per class for the KSC and Pavia Centre datasets, our method’s classification accuracy was higher than that of its best-performing unsupervised competitors by about 7% and 1%, respectively, in our experiments.