With the 30 year US Treasury yield holding above 5% and government bonds offering richer income, investors are rethinking how they balance risk and reward across the stock market. Higher real yields can pressure some sectors, yet they may also reshape earnings power for certain financial groups that live and breathe interest margins and investment income. This article looks at how that backdrop connects to large banks and insurers in our Financial Sector Stocks screener. You will see three stocks that appear positively exposed to this rate story and how this setup could matter for your portfolio decisions.

Renasant (RNST)

Overview: Renasant is a regional US bank based in Mississippi that provides everyday banking, lending, and digital services through its Community Banks segment, alongside wealth management and fiduciary services that help individuals, businesses, and institutions manage and grow their money.

Operations: Renasant generates about US$989 million from Community Banks and US$37 million from Wealth Management, with revenue concentrated in the United States.

Market Cap: US$4.0b

Renasant provides exposure to higher long term rates through a regional bank that is geared to net interest income, while also offering fee income from wealth management. Analysts expect faster earnings growth and improving margins, the bank has raised its dividend and expanded its buyback, and the Simply Wall St DCF points to a material gap between price and estimated value. At the same time, ROE remains modest, insider selling has picked up, and the franchise is concentrated in the Southeastern US with meaningful exposure to real estate and recent merger integration work still in progress. To understand how those trade offs stack up against the current valuation and rate backdrop, investors will need to conduct further research.

Renasant’s earnings story is being pulled in two directions. The rate backdrop and capital returns hint at upside, yet insider selling and regional concentration raise questions about the 4 key rewards and 1 important warning sign

Midland States Bancorp (MSBI)

Overview: Midland States Bancorp is a Midwest based financial holding company for Midland States Bank that offers a full suite of banking, lending, equipment leasing, and wealth management services to individuals, businesses, municipalities, and other institutions across the region.

Operations: Midland States Bancorp generates about US$286 million in revenue, with all of it reported from the United States.

Market Cap: US$668.4 million

Midland States Bancorp provides exposure to higher long term yields through a regional bank that relies on loan spreads and interest income. The company also pays a 3.9% dividend and returns cash via buybacks, including a US$45 million program running through the end of 2026. Recent results show high quality earnings and a rebound in profitability, with Q2 2026 net income at US$19.89 million and EPS at US$0.82. However, the current ROE of 7.6% and a P/E above peers highlight execution risk if growth falls short. With the stock trading below Simply Wall St’s estimate of future cash flows, the key question is whether management can turn higher real yields into sustainable returns without stretching credit risk or balance sheet strength.

Midland States Bancorp’s earnings rebound and cash returns suggest that the current P/E might not tell the whole story. To see how the market is pricing that potential relative to execution risk, review the DCF valuation analysis for Midland States Bancorp

Banc of California (BANC)

Overview: Banc of California is a Los Angeles based bank that serves small and mid sized businesses, investors, and high net worth clients with a mix of traditional checking and savings products, commercial and real estate lending, and treasury and payment services across several US regions.

Operations: Banc of California generates about US$1.07b in revenue from Commercial Banking, with all of it reported in the United States.

Market Cap: US$3.3b

Investors looking at higher long term rates may find Banc of California interesting because it is geared to commercial lending, where new loans can be priced well above older ones. Management is also working through merger integration and a large balance sheet reshuffle. Earnings have strong momentum, profitability has improved, and the stock trades below one DCF based fair value estimate and around 1x forward book value. However, ROE forecasts remain modest, the dividend record is patchy, and insiders have been selling. With a sizeable buyback, debt redemption plans, and a Q2 2026 earnings update due on July 29, the next few quarters could be important for how this story develops.

Banc of California’s merger reshuffle and commercial lending focus could be masking where the real earnings power sits. Get the full picture in the analysis report for Banc of California to see what the balance sheet suggests might come next.

The three financial stocks in this article are only a starting point. The full Financial Sector Stocks (Banks & Insurers) screener surfaces 34 more large banks and insurers that share similarly compelling rate driven narratives. Use Simply Wall St to identify, filter, and analyze the specific catalysts, balance sheet strength, and earnings drivers that matter most to you so you can focus on the highest conviction opportunities in this group.

Take Control of Your Investment Journey

If Banc of California or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Seeking Fresh Alternatives Before They Fly

Fresh ideas often move first. By the time the crowd catches on to a quiet breakout, the best entry point can be gone. Scan these under the radar lists to research ideas earlier in their development.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.