Long term US yields are back in the spotlight, with Washington’s ballooning deficit and a louder bond market testing how far policymakers will go to keep borrowing costs contained. That tug of war creates real winners and losers in financials exposed to the shape of the yield curve. This article walks through three US bank and insurance stocks from our screener that appear well aligned with these cross currents.

The three stocks highlighted below are just a sample of this theme, while the full screen surfaced 23 more US banks and insurers with equally compelling interest rate and insurance driven narratives that are not covered here. If you want to go beyond the short list and actively identify your own higher conviction ideas, head straight into the US Financials – Banks and Insurance Benefiting from Higher Long-Term Yields screener

Fifth Third Bancorp (FITB)

Overview: Fifth Third Bancorp is a large regional US bank that earns most of its money by taking in deposits and making loans across commercial, consumer, and wealth customers, which ties its earnings closely to net interest margin and the shape of the yield curve. With three main segments covering everything from business credit to mortgages, cards, and wealth management, the company is highly exposed to moves in long term US rates that influence what it earns on loans versus what it pays on deposits.

Operations: Fifth Third Bancorp generates about US$5.3b of revenue from Consumer and Small Business Banking, US$4.4b from Commercial Banking, and US$0.9b from Wealth and Asset Management, with all of its roughly US$10.1b of revenue coming from the United States.

Market Cap: US$49.7b

Fifth Third Bancorp is worth a closer look if you want a large regional bank whose fortunes are closely tied to long term US yields. The bank has a broad loan and deposit base, strong net interest income tied to the yield curve, and a growing embedded payments and wealth platform, which together can be powerful when higher long term rates widen lending spreads. At the same time, investors need to factor in recent one off losses, shareholder dilution, and a lower return on equity, as well as management’s own caution that higher for longer rates can eventually pressure credit quality. The key issue for investors is how this mix of rate sensitivity, fee growth, and risk control develops over time.

Fifth Third Bancorp’s rate sensitive loan and deposit engine could be masking a far more interesting risk reward story. Get the full picture with the 3 key rewards and 2 important warning signs (1 is major!)

Midland States Bancorp (MSBI)

Overview: Midland States Bancorp is a US financial holding company built around traditional spread based banking, using deposits from individuals, businesses, and municipalities to fund a wide mix of commercial, real estate, construction, and residential loans, with an additional wealth management arm that adds fee income tied to financial and estate planning, investment management, and retirement services.

Operations: Midland States Bancorp generates about US$264 million of revenue from Banking and US$33 million from Wealth Management, with virtually all of its roughly US$286 million of revenue earned in the United States.

Market Cap: US$682 million

Midland States Bancorp gives you a straightforward community banking story that taps directly into the screener theme, since a spread based model can benefit when long term US yields improve the gap between what it earns on loans and pays on funding. Recent quarterly results show net interest income of US$59.59 million and net income of US$19.89 million, alongside a 3.9% dividend yield and active buybacks. Together these point to income plus potential earnings leverage if margins stay firm. The trade off is a relatively low 7.6% return on equity and a P/E above the industry average, so a lot rests on management keeping credit costs in check and turning that rate sensitivity into durable profitability rather than just a temporary uplift.

Midland States Bancorp’s income plus buybacks story could be masking a much bigger question. Is that P/E premium hinting at resilient earnings power, or a fragile edge that cracks under pressure? Get the full analysis report for Midland States Bancorp

First Hawaiian (FHB)

Overview: First Hawaiian is a long established US bank holding company that runs a broad mix of retail and commercial banking, using local deposits to fund residential and commercial mortgages, business lending, auto loans, and card services, with additional income from wealth management, insurance, and merchant processing. Its core profitability is closely tied to the gap between what it pays on deposits and what it earns on longer term loans, which links it directly to the higher long term yield theme of this screener.

Operations: First Hawaiian generates about US$632.8 million of revenue from Retail Banking and US$249 million from Commercial Banking, with a small contribution from Corporate and Other.

Market Cap: US$3.2b

First Hawaiian provides a relatively straightforward way to gain exposure to higher long term yields, since its earnings lean heavily on net interest income from a broad, deposit funded loan book, while still offering fee streams from wealth and payments. The bank has been reporting high quality earnings with solid net interest income and a dividend yield just under 4%. Its shares trade below some fair value estimates, and analysts highlight a healthy deposit base, conservative credit history, and recent loan growth in areas such as commercial real estate. Key risks include geographic concentration in Hawaii, deposit competition, and early signs of credit strain to watch, so the potential opportunity here comes with meaningful uncertainties.

First Hawaiian’s steady net interest engine and dividend just under 4% could be masking a more interesting growth story. See how analysts frame the balance between opportunity and risk 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.