Regional banks are commercial banks that have a slightly smaller scope of operations and have a presence in specific geographic regions compared to banking giants such as Bank of America Corp (NYSE:BAC) and JPMorgan & Chase Co. (NYSE:JPM).
Regional banks have a range of $50 billion to $500 billion in assets under management and are prime targets for mergers and acquisitions.
With the Federal Reserve raising interest rates, banks will earn more profit as the spread increases through earnings generated from short-term notes and the interest paid out to customers. Furthermore, the Fed raising interest rates usually suggests a strong economy, as it attempts to slow growth by raising rates.
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Truist Financial Corp (NYSE:TFC) is offering a dividend yield of 4.42% or $2.08 per share annually, making quarterly payments, with a solid track record of increasing its dividends for eight consecutive years.
Headquartered in Charlotte, North Carolina, Truist Financial is a top 10 U.S. commercial bank with a presence primarily in the Southeastern U.S. with more than 2,119 branches and total assets of $548 billion, as of Sept. 30, 2022.
"Truist's third-quarter performance reflected strong progress in many areas of the business, as we delivered strong broad-based loan growth, significant margin expansion and continued exceptional asset quality,” said Chairman and CEO Bill Rogers.
Huntington Bancshares Incorporated (NASDAQ:HBAN) is offering a dividend yield of 4.13% or 62 cents per share annually, through quarterly payments, with a notable track record of increasing its dividends for 11 consecutive years.
Huntington Bancshares is a regional bank holding company headquartered in Columbus, Ohio, with a network of more than 1,000 branches and ATMs across 11 states.
On June 9, 2021, Huntington completed its merger with TCF Financial Corporation, creating a top 25 U.S. bank holding company, and now has approximately $179 billion in assets.
KeyCorp (NYSE:KEY) is offering a dividend yield of 3.93% or $4.80 per share annually, using quarterly payments, with a strong track record of increasing its dividends for 11 consecutive years.
KeyCorp is one of the nation’s largest, bank-based financial services companies, with more than 1,000 full-service branches in 15 states, with its two largest markets in Ohio and New York, and approximately $187 billion in assets, as of June 30, 2022.
During the third quarter, KeyCorp board of directors approved an extension of the remaining $790 million existing share repurchase authorization through the third quarter of 2023.
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