US Regional Banks Show Mixed Valuations Amid Growth and Risks

Several regional banks have shown notable stock price increases over the past year, driven by varied growth strategies and investor confidence. Texas Capital Bancshares (TCBI) has gained 21%, with analysts viewing it as slightly undervalued due to expected earnings and efficiency improvements, despite risks from regional exposure and rising tech costs. Old National Bancorp (ONB) climbed 23%, supported by analyst upgrades and an ambitious transformation plan, though it faces risks from commercial real estate exposure. Bancorp (TBBK) surged nearly 50%, but its recent earnings miss and fintech focus lead analysts to consider it overvalued. BankUnited (BKU) has raised dividends and shares rose 12%, trading below fair value with potential upside from expansion and profit margin growth. Meanwhile, Bank of America (BAC) saw a 36% increase, fueled by growth initiatives and community investments, but is assessed as overvalued based on earnings forecasts and market assumptions.