Rising rate expectations, persistent inflation pressures, and a less predictable Federal Reserve are reshaping how investors think about US regional banks. With markets now entertaining the idea of rate hikes instead of cuts, the way these banks price loans, manage deposits, and handle funding costs is back in focus. This article walks through three regional bank stocks from our US Regional Banks screener that are closely tied to the current policy debate and economic backdrop. By the end, you will see which profiles may align with your own risk tolerance and which setups you might prefer to sit out.

Metropolitan Bank Holding (MCB)

Overview: Metropolitan Bank Holding is the parent of Metropolitan Commercial Bank, a New York based lender that focuses on commercial real estate, multi family and business borrowing, while also offering everyday banking services like checking, savings, deposits, cards and cash management to small businesses, middle market clients, public entities and individuals.

Operations: The company generates all of its approximately US$302.2 million in revenue from banking activities in the United States.

Market Cap: US$1.22b

Investors looking at Metropolitan Bank Holding in a potential rate hike cycle may find a mix of growth opportunities and meaningful risk. The bank is highly geared to commercial lending and can benefit when higher rates widen net interest margins, as reflected in recent results and management commentary. Ongoing investment in digital platforms and payment partnerships is intended to build higher margin, fee based income. At the same time, exposure to commercial real estate, reliance on specialized deposit verticals and recent insider selling mean funding costs, credit quality and alignment with shareholders deserve close attention. The new buyback authorization and higher dividend add another layer to the story, but they do not remove the execution and concentration risks that remain relevant for long term holders.

Metropolitan Bank Holding’s buyback and dividend shift the story to shareholder returns, but the real signal sits in the 3 key rewards and 2 important warning signs that could explain whether these moves are masking something bigger

Eagle Bancorp (EGBN)

Overview: Eagle Bancorp is the holding company for EagleBank, a Bethesda based regional bank that offers a wide range of commercial and consumer banking services, from checking and cash management to real estate, construction, and business lending, primarily across the Washington, D.C. area.

Operations: Eagle Bancorp generates all of its approximately US$21.4 million in revenue from banking activities in the United States.

Market Cap: US$865.8 million

Investors watching Eagle Bancorp in a potential rate hike cycle are likely to focus on its sensitivity to net interest margins, cleaner balance sheet after office loan charge offs, and tight cost structure supported by a relatively lean branch network. Forecasts for strong earnings and revenue growth, together with a P/B ratio around 0.8x and high board independence, give the stock an appeal for readers who think the recent leadership transition and index removals may already be reflected in sentiment. On the other hand, the company is still loss making with negative return on equity, trades above an estimated DCF value, and is working through elevated charge offs, so funding costs, credit quality and management execution remain key swing factors for long term returns.

Eagle Bancorp’s earnings and revenue forecasts, lean branch model, and US$865.8 million valuation raise an obvious question: is the current pricing missing something in the analyst forecasts for Eagle Bancorp or is one key risk still hiding in plain sight?

ConnectOne Bancorp (CNOB)

Overview: ConnectOne Bancorp is a New Jersey based commercial bank that serves small and mid sized businesses, professionals, and households with a full suite of deposit accounts, digital banking, cash management, and lending products including commercial and residential mortgages, home equity, and other secured loans.

Operations: ConnectOne Bancorp generates all of its approximately US$378.4 million in revenue from community banking services in the United States.

Market Cap: US$1.68b

ConnectOne Bancorp stands out in a rising rate backdrop because it is a pure play regional lender with meaningful exposure to New York, New Jersey, and Long Island. The recent First of Long Island merger has increased scale and deepened relationships. Rapid integration, a stronger deposit base, and solid recent earnings, including US$37.82 million in Q1 2026 net income and an 8.3% common dividend increase, suggest the business model is resonating. At the same time, higher commercial real estate concentration, past shareholder dilution, and relatively low 6.2% ROE mean investors still need to think carefully about risk. The real question is whether this growth and M&A story can keep compounding in a world of higher for longer rates, or whether credit and integration issues eventually bite.

ConnectOne Bancorp’s merger driven scale, 8.3% dividend uplift, and US$37.82 million Q1 net income hint at a story that many may be underestimating, but the analyst forecasts for ConnectOne Bancorp could reveal one crucial twist investors are overlooking

The three regional bank stocks covered here are only the start, as the full US Regional Banks screener surfaced 35 more companies with equally interesting setups and narratives that could fit different risk profiles and rate views in this sector. Identify the specific catalysts that matter to you and analyze which banks best fit your thesis by using filters inside the US Regional Banks screener to hone in on the highest conviction ideas.

Take Control of Your Investment Journey

If ConnectOne Bancorp 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 Alternatives Beyond Regional Banks?

Fresh stock ideas move fast, and the cleanest setups often gain momentum or drop out of sight before the crowd catches on. Scan these curated lists and act now.

• Spot potential breakouts in capital hungry sectors by reviewing a curated 41 high quality undervalued stocks that currently trade below what their cash flows and fundamentals may justify.
• Target resilient income streams with a focused group of 8 dividend fortresses that prioritise durability alongside yield for investors who care about sustainability as much as payout.
• Chase structural growth trends by filtering 53 AI infrastructure stocks powering the systems, chips, and networks behind AI adoption while that story is still under the radar for now.

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.