With the 30 year Treasury yield around 5.26% and long term rates staying higher for longer, money is quietly being repriced across the market. That shift can hurt some stocks yet open the door for others that earn more on loans and investment portfolios. This article walks through three U.S. banks and insurers from our screener that appear positioned to benefit from this rate backdrop and explains what investors might want to watch next.

The stocks highlighted below are just a starting sample, while the full higher for longer screen surfaced 32 more U.S. banks and insurers with equally compelling stories that are not covered in this article. If you want to go straight to the source and work through the full list yourself, head into the U.S. Banks and Insurers Benefiting from Higher-for-Longer Interest Rates screener to analyze, filter and identify which ideas best fit your own portfolio and risk profile.

Simmons First National (SFNC)

Simmons First National is a regional bank holding company that provides a full suite of loans, deposits, treasury management, and wealth services to consumers and businesses across several southern and midwestern states. It currently reports around US$66 million in Community and Commercial Banking revenue and about US$44 million from Other activities, all generated in the United States. The stock sits in mid cap territory with a market value of roughly US$3.5b.

Investors looking at Simmons First National in a higher for longer rate world may find a mix of opportunity and caution worth closer attention. The bank is geared to wider lending spreads through its broad loan book and securities portfolio. Forecasts in the market point to strong revenue growth and an expected move back to consistent profitability over the next few years. At the same time, the dividend is not fully covered by current earnings, past earnings have been volatile, and commercial real estate exposure remains a watchpoint. The current valuation, recent earnings momentum, and management’s focus on efficiency and digital investment together create an important test of whether this regional bank can turn forecast growth into durable returns.

Simmons First National’s story hinges on whether forecast growth can outpace its current earnings and dividend tensions. To see how those expectations compare with the most important risks, review the 2 key rewards and 1 important warning sign

Build your own higher for longer shortlist

Simmons First National and the two other stocks in this article all came out of a single screen, but the bigger opportunity is shaping your own process. Use our flexible Screener to mix filters across valuation, growth, balance sheet strength, risks and dividends, or jump straight into any of our curated Investing Ideas.

Midland States Bancorp (MSBI)

Midland States Bancorp is a regional financial holding company that runs Midland States Bank and offers a wide range of loans, leases, deposit accounts, and wealth management services to individuals, businesses, and municipalities. Most of its US$286 million in revenue comes from Banking at about US$265 million, with Wealth Management contributing around US$33 million and a small loss from Corporate activity. The stock is a smaller regional player with a market value of roughly US$693 million.

Midland States Bancorp is catching more attention as higher-for-longer interest rates filter through to loan yields and deposit pricing. Management has highlighted higher rates on new and renewed loans, especially in commercial and equipment finance, while also redeeming US$40 million of 6.25% subordinated debt to reduce funding costs. Recent results show stronger net interest income and earnings, along with dividend growth and buybacks. However, the P/E premium and historically weaker earnings trend keep the risk side of the ledger significant. Investors who want to understand whether this regional bank can turn today’s rate backdrop into durable profitability, without letting credit costs or funding pressures bite too hard, may find the fuller story worth a closer look.

Midland States Bancorp’s mix of higher loan yields, debt redemption and capital returns hints at a story that many investors may be only half seeing. Walk through the full analysis report for Midland States Bancorp to see how that P/E premium could either make perfect sense or hide the real twist.

First Hawaiian (FHB)

First Hawaiian is a long established Honolulu based bank holding company that offers consumer and commercial banking, wealth management, and card services across retail and corporate clients. Most of its revenue comes from Retail Banking at about US$633 million, followed by Commercial Banking at roughly US$249 million, with Corporate and Other close to breakeven. The stock sits in mid cap territory with a market value of about US$3.4b.

Investors looking at First Hawaiian in a higher for longer rate world are effectively weighing a high quality deposit franchise and strong net profit margins against some very real concentration and credit questions. The bank is directly exposed to net interest margin support from elevated long term yields, while its Hawaii focused footprint and construction and consumer lending leave it sensitive to any tourism slowdown or household strain. In addition, the planned TriCo Bancshares acquisition, recent loan growth and dividend income present a bank that combines income appeal and growth potential with execution risk on integration, deposit competition and future credit costs that careful investors will likely want to unpack further.

First Hawaiian’s income appeal and growth story may look straightforward, yet the real question is how analysts see earnings holding up once the TriCo Bancshares deal and credit cycle pressures fully play through. See how that balance of opportunity and risk is framed in the analyst forecasts for First Hawaiian

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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.