Regional banks are financial institutions that provide banking services to customers within a specific geographic area, such as a state or a region. These banks often have a more localized focus than larger national banks and may specialize in serving small businesses or individuals in their local communities. Regional banks typically offer a range of banking products and services, including checking and savings accounts, loans, and mortgages.
Investing in regional bank stocks can provide investors with exposure to the financial sector and potential opportunities for growth. Regional bank stocks refer to shares in companies that operate regional banks. These stocks can offer potential benefits such as regular dividends and potential capital appreciation as the value of the underlying banks increases.
However, like all investments, regional bank stocks come with risks, such as changes in interest rates, regulatory changes, and economic conditions that could affect the overall health of the banking industry. Keeping this in mind, here are three trending regional bank stocks to watch in the stock market today.
Regional Bank Stocks To Buy [Or Avoid] Now
- First Republic Bank (NYSE: FRC)
- Western Alliance Bancorporation (NYSE: WAL)
- Zions Bancorporation N.A. (NASDAQ: ZION)
First Republic Bank (FRC Stock)
Leading off, First Republic Bank (FRC) is a regional bank that provides banking and wealth management services to individuals, businesses, and nonprofits. The bank has a strong reputation for exceptional customer service and operates more than 80 offices in the United States.
This month, First Republic Bank announced that it has strengthened its financial position by gaining access to additional liquidity from the Federal Reserve Bank and JPMorgan Chase & Co. This additional borrowing capacity, continued access to funding through the Federal Home Loan Bank, and ability to access additional financing through JPMorgan Chase & Co. increases, diversifies, and further strengthens First Republic’s existing liquidity profile. The total available, unused liquidity to fund operations is now more than $70 billion.
Additionally, shares of FRC stock have rebounded by 55.30% during Tuesday morning’s trading session, trading at $48.47 a share.
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Western Alliance Bancorp (WAL Stock)
Next, Western Alliance Bancorporation (WAL) is a regional bank holding company that operates several subsidiary banks, including Western Alliance Bank and Bank of Nevada. The company provides a range of banking services to businesses and individuals, including commercial lending, deposit services, and treasury management.
Just yesterday, Monday, Western Alliance Bank reported that it has filed an updated Form 8-K. In the filing, WAL President and CEO, Kenneth Vecchione, has announced that the bank has taken additional steps to strengthen its liquidity position, including increasing borrowing capacity. The bank’s cash reserves now exceed $25 billion and are growing, while deposit outflows have been moderate. Insured deposits exceed 50% of total deposits, including accounts eligible for pass-through insurance. These moves aim to ensure that Western Alliance Bank can meet all of its client funding needs and continue to operate smoothly.
Meanwhile, during Tuesday morning’s trading session, shares of WAL stock started to bounce by 46.63% at $38.30 a share.
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Zions Bancorp (ZION Stock)
Lastly, Zions Bancorporation N.A. (ZION) is a regional bank holding company that operates several subsidiary banks, including Zions Bank, National Association, and Amegy Bank of Texas. The company provides a range of banking services to businesses and individuals, including commercial lending, deposit services, and wealth management.
Back in January, ZION reported better-than-expected fourth-quarter 2022 financial results. In detail, the company showed Q4 2022 earnings of $1.84 per share, along with revenue of $988.0 million. As a result, revenue increased by 30.7% versus the same period, in the previous year.
Moving along, during Tuesday morning’s trading session, shares of ZION stock have surged 16.03% so far on the day, trading at $34.76 a share.
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