With the Federal Reserve still wrestling with inflation and some officials openly entertaining higher rates for longer, the usual playbook for interest rate cuts looks less reliable. That uncertainty can reshape which parts of the market feel pressure and which see fresh opportunity. This article looks at how that backdrop connects to three stocks from our US Banks and Insurers Benefiting From Higher-for-Longer Interest Rates screener and why their exposure to this news could matter for your portfolio.

The three stocks that follow are only a sample from this idea, and the full screen surfaced 24 more banks, insurers and diversified financials with equally compelling interest rate narratives that are not covered here. To identify and analyze higher-for-longer interest rate candidates that match your own risk and income goals, head straight into the US Banks and Insurers Benefiting From Higher-for-Longer Interest Rates screener.

Heritage Financial (HFWA)

Overview: Heritage Financial is a regional bank holding company that serves small and medium sized businesses and their owners in the United States, providing deposit accounts alongside commercial, real estate, construction and consumer lending. Its focus on relationship banking and credit to operating businesses means earnings are closely linked to net interest margins, which ties directly into a higher for longer rate theme.

Operations: Heritage Financial generates all of its approximately US$295 million in revenue from commercial banking activities in the United States.

Market Cap: US$1.18 billion

Heritage Financial provides a focused way to gain exposure to a higher for longer rate environment because its commercial banking model leans heavily on net interest income from small and mid sized business lending, where loan yields tend to react directly to Fed policy. Recent results show higher net interest income and profitability, alongside a modest dividend increase and active buybacks. Together these elements indicate a management team that is currently returning cash to shareholders while rates remain elevated. At the same time, there is meaningful exposure to commercial real estate credit, competitive loan pricing and regional economic swings, which can pressure margins and credit costs if conditions change. For investors comfortable with that balance, a closer look at earnings quality, dividend durability and valuation may be warranted.

Heritage Financial’s mix of higher net interest income, a modest dividend lift, and active buybacks hints at a story investors may not be fully pricing in. Get the full context, including capital strength and funding resilience, in the Heritage Financial financial health report

Five Star Bancorp (FSBC)

Overview: Five Star Bancorp is the holding company for Five Star Bank, a Northern California lender that provides deposits and loans to small and medium sized businesses, professionals and households, giving investors exposure to traditional banking where earnings are closely linked to loan yields and net interest margins. Its mix of commercial real estate, construction, SBA and consumer lending, together with a securities portfolio, ties directly into the higher for longer interest rate theme that underpins this screener.

Operations: Five Star Bancorp generates about US$168 million in revenue from its banking operations in the United States.

Market Cap: US$1.11 billion

Five Star Bancorp may be worth a closer look for investors seeking focused exposure to higher for longer rates, anchored in a regional bank with clear interest income drivers. The bank’s entire revenue base comes from US banking, which places reinvestment yields and net interest margins at the center of the story, while recent net interest income and net income figures from Q2 2026 show how that can translate into earnings. At the same time, concentrated exposure to Northern California, meaningful commercial real estate lending and competition for deposits can all affect margins and credit costs if conditions shift. For investors comfortable weighing those trade offs, the combination of dividend income, efficiency focus and fresh equity capital for loan growth could be a starting point for deeper research.

Five Star Bancorp’s story of focused net interest income, fresh equity capital and regional lending strength feels only half told. Get the full picture in the analysis report for Five Star Bancorp and see what might be hiding behind those headline numbers.

Huntington Bancshares (HBAN)

Overview: Huntington Bancshares is a large U.S. regional bank that earns most of its money from commercial, consumer, and mortgage lending, so net interest income and margins are closely tied to where short and medium term interest rates sit. Alongside traditional deposit and lending products, it offers payments, wealth management, dealer finance and equipment finance, which add fee income on top of its rate sensitive loan book.

Operations: Huntington Bancshares generates about US$3.2 billion from Commercial Banking and US$6.3 billion from Consumer & Regional Banking, with all of its roughly US$9.2 billion in revenue coming from the United States.

Market Cap: US$34.4 billion

Huntington Bancshares is tightly linked to the higher for longer rate theme, with sizeable commercial, consumer and mortgage books feeding into net interest income that already sits in the billions of dollars this year. Recent quarters show higher net interest income and net income alongside a 3.68% dividend yield and a completed US$50 million buyback, so you are looking at a mix of earnings power and ongoing capital returns. The flip side is margin pressure from rising deposit costs, a still modest 7.4% ROE and recent shareholder dilution, which all need close attention as the Fed debates keeping policy tight. For investors who want a large regional bank that is actively planning around multiple rate paths, Huntington’s growth initiatives and fee income expansion are worth a deeper look.

Huntington Bancshares looks like a growing earnings and dividend story that the market may not fully appreciate yet, especially with higher rates and fresh buybacks in the mix. See how the analyst forecasts for Huntington Bancshares could also reveal the key pressure point that decides where this story goes next.

Seeking Alternatives Before The Crowd

Fresh stock ideas can start breaking out while most investors are still watching yesterday’s moves. Curated screeners can help identify under‑the‑radar momentum, allowing interested investors to review opportunities earlier in the process.

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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.