Regional Banks Vulnerable to Takeovers, Says KBW

Regional banks with assets between $80 billion and $120 billion, including Comerica, Zions, and First Horizon, are facing pressure on returns and profitability, making them potential targets for acquisition by larger rivals, according to KBW analysts. While some banks in this range, such as Western Alliance and Webster Financial, have strong returns and may remain independent, they could also consider selling themselves. Smaller banks with higher returns, like East West Bank, Popular Bank, and New York Community Bank, may become acquirers rather than targets. The banking industry is expected to consolidate as banks seek to optimize profitability in the face of new regulations.