3 US Bank Stocks Investors Are Watching As Treasury Yields Near 5.24%

With 30 year US Treasury yields hovering near 5.24% and investors rethinking what counts as a safe return, interest rate sensitive banks and brokerages sit at the crossroads of risk and opportunity. Higher risk free rates can reshape how cash, deposits, and brokerage balances earn money. This article walks through three US financial stocks tied to this rate shock and explains how the story might matter for your portfolio.

The three stocks covered below are just a starting sample, and the full screen surfaced 34 more US interest rate sensitive banks and brokerages with equally compelling stories that are not included in this article. To go straight to the full field and identify, compare, and analyze potential high conviction ideas, head into the US Interest-Rate-Sensitive Banks and Brokerages screener.

Farmers National Banc (FMNB)

Overview: Farmers National Banc is a community focused financial group based in Canfield, Ohio that offers traditional banking, mortgages, business lending, trust and retirement services, insurance, and wealth management to individuals and companies.

Operations: Farmers National Banc generates most of its roughly $219 million in annual revenue from its Bank segment at about $162 million, with additional contributions from its trust and retirement consulting activities and other revenues, all in the United States.

Market Cap: $952 million

Farmers National Banc gives you a way to tap into higher long term US yields through a community bank that earns interest on deposits while also collecting steady fee income from trust, retirement consulting, and insurance. Earnings growth over the past year has outpaced both the US banks sector and the wider market, and the stock trades well below one estimate of fair value even as it maintains a 4.21% dividend yield. Entry into the S&P Regional Banks Select Industry Index in 2026 has also raised its profile. The flip side is rising net charge offs, recent shareholder dilution, rapid management turnover, and insider selling, which all warrant closer attention before deciding how much interest rate exposure you want through Farmers National Banc.

Farmers National Banc sits at the intersection of rising long term yields, steady fee income, and a valuation some investors may have overlooked. For more details, see how the interest rate trade compares in the 4 key rewards and 2 important warning signs (1 is major!)

Build your own rising rate opportunity shortlist

Farmers National Banc and the two other stocks in this article all came out of the same Simply Wall St stock screener, which you can easily tailor to your own approach. Use our flexible Screener to mix filters like valuation, dividends, risks, and balance sheet strength, or jump straight into our curated Investing Ideas for ready made starting points.

Five Star Bancorp (FSBC)

Overview: Five Star Bancorp is a Northern California focused bank holding company that serves small and medium sized businesses, professionals, and individuals with a mix of deposit accounts, digital banking services, and a broad lending toolkit that includes commercial real estate, construction, SBA, residential, farmland, and consumer loans.

Operations: Five Star Bancorp generates about $168 million in annual revenue almost entirely from its core banking activities in the United States.

Market Cap: $1.2b

Five Star Bancorp provides exposure to higher long term US yields through a deposit rich regional bank whose net interest income may benefit when loan spreads widen and funding remains stable. Earnings growth has outpaced both the banks sector and wider US market, revenue is projected to grow faster than the market, and insiders recently bought millions of dollars of stock even as the company completed a sizeable follow on equity raise to fund further expansion. At the same time, heavy exposure to Northern California and commercial real estate, plus concentrated large deposits, means higher rates and local stress could quickly pressure credit quality and funding. For investors comfortable with those trade offs, Five Star Bancorp may merit a closer look in any rising rate shortlist.

Five Star Bancorp’s earnings momentum and insider buying suggest a story that many investors may be underrating. Get the full picture in the analyst forecasts for Five Star Bancorp, including one funding twist that could change how you see the stock.

Peapack-Gladstone Financial (PGC)

Overview: Peapack-Gladstone Financial is a New Jersey based bank holding company for Peapack Private Bank & Trust that focuses on private banking, commercial lending, and wealth management for businesses, non-profits, and affluent individuals across the Metro New York and New Jersey area.

Operations: Peapack-Gladstone Financial generates about $221 million of revenue from its Banking segment and $68 million from Wealth Management, all in the United States.

Market Cap: $797 million

Peapack-Gladstone Financial combines a growing commercial and private banking franchise with a meaningful wealth management arm that oversees about $13b of client assets. Higher long term US yields can lift net interest income on its relationship focused deposit base. In addition, fee income from wealth management and services such as remote real estate check processing helps diversify revenue away from pure lending. Recent results indicate stronger earnings and wider margins. However, return on equity remains modest and the allowance for bad loans appears relatively thin, particularly in light of recent net charge offs and fresh preferred equity. For investors watching how higher rates can reward disciplined lenders with loyal, higher balance clients, Peapack-Gladstone Financial may merit closer review.

Peapack-Gladstone Financial blends higher balance private clients with a sizable wealth arm that can react in very different ways to rising yields. See how those moving parts fit together in the 4 key rewards and 2 important warning signs

Seeking Alternatives While Curiosity Is High

Fresh ideas can move fast while interest builds and liquidity follows. Spot potential breakouts before the crowd, while it matters and under the radar for now. Act now.

• Pinpoint resilient cash generators before sentiment catches up by scanning the list of solid balance sheet and fundamentals (49 results) that highlights companies with earnings support, not just a story.
• Ride potential yield momentum while prices still lag by reviewing the 9 dividend fortresses focused on companies combining income strength with balance sheet resilience.
• Target structural growth areas before capital comes flying in by using the 55 AI infrastructure stocks that zeroes in on businesses building the backbone of AI demand.

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.

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