Is your money safe in a regional bank?
FDIC Insurance Can Prove a Buffer
Regions Bank is FDIC-insured, which means that up to $250,000 is protected in an individual bank account.
Regional banks can still keep your money safe, and some offer better interest rates and customer service than large national banks. Most regional banks are FDIC insured, so your money is protected even if the bank fails.
Again, when it comes to the safety of deposits, regional and community banks are like national banks in that each account will be insured up to the FDIC limit of $250,000, with increased coverage in the event of a sweep network.
A bank account is typically the safest place for your cash, since banks can be insured by the Federal Deposit Insurance Corp. up to $250,000 per depositor, per insured institution, per ownership category. Banks that are insured by the FDIC often say “Member FDIC” on their websites.
Your Regions deposits are fully protected up to the standard deposit insurance amount by the Federal Deposit Insurance Corporation (FDIC). The standard deposit insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.
The trend for all ratings at the Company and the Bank are Stable. The Intrinsic Assessment (IA) for the Bank is A (high), while its Support Assessment remains SA1. The Company's Support Assessment is SA3 and its Long-Term Issuer Rating is positioned one notch below the Bank's IA.
A regional bank usually has in-network ATMs available even if you're traveling outside of the U.S. Technology: Regional banks understand your need to be on the go. They not only use their financial resources and talent to develop advanced tech banking services; their size affords them the agility to roll out quickly.
With interest rates appearing to have peaked and lenders' deposit costs easing, 2024 could turn out to be a far more hospitable year for U.S. regional banks than 2023. For U.S. regional banks, 2023 was a tumultuous year.
2024 Outlook: Deposits & Liquidity
Deposit acquisition, management, and reporting are and will continue to be subject to higher costs and greater standards of transparency. On-hand liquidity has doubled to nearly tripled on most banks' balance sheets.
What regional banks are in financial trouble?
The unexpected collapses of three banks - Silicon Valley and Signature in March 2023 and First Republic in May - put a spotlight on how lenders managed risks to assets and liquidity as the Federal Reserve raised interest rates aggressively to bring surging inflation under control.
- If a $300 daily balance isn't maintained, there's a $5 monthly fee.
- Withdrawals in excess of three per month cost $3 each. Most banks allow for at least six free transactions from savings accounts.
- The APY is low.
- First Republic Bank (FRC) . Above average liquidity risk and high capital risk.
- Huntington Bancshares (HBAN) . Above average capital risk.
- KeyCorp (KEY) . Above average capital risk.
- Comerica (CMA) . ...
- Truist Financial (TFC) . ...
- Cullen/Frost Bankers (CFR) . ...
- Zions Bancorporation (ZION) .
Cash equivalents are financial instruments that are almost as liquid as cash and are popular investments for millionaires. Examples of cash equivalents are money market mutual funds, certificates of deposit, commercial paper and Treasury bills. Some millionaires keep their cash in Treasury bills.
Common types of securities include bonds, stocks and funds (mutual and exchange-traded). Funds and stocks are the bread-and-butter of investment portfolios. Billionaires use these investments to ensure their money grows steadily.
Here's Who's Pulling Their Money. Total deposits at commercial banks fell by just over $1 trillion from April 2022 to May 2023. People 40 years old and younger are more likely to pull their money, with 38% of them reporting that they moved deposits compared to 23% of those over 40.
High interest rates and commercial real estate loan exposure still pose problems for many regional banks—and some institutions face particular risks—but experts don't expect widespread failures.
Fitch Ratings - New York - 10 Oct 2023: Fitch Ratings has affirmed the Long- and Short-Term Issuer Default Rating (IDR) of Regions Financial Corporation (RF) and its operating subsidiary, Regions Bank, at 'A-' and 'F1', respectively. The Rating Outlook is Stable.
2024 in Brief
There are no bank failures in 2024. See detailed descriptions below. For more bank failure information on a specific year, select a date from the drop down menu to the right or select a month within the graph.
Overview. Regions Bank had $159.7 billion in assets as of June 30, 2022, ranking it No. 25 among banks in the country. Regions Bank serves customers across the South, Midwest and Texas and operates approximately 1,300 banking offices.
Is Regions Bank a small bank?
Regions Financial Corporation is a member of the S&P 500 Index and is one of the nation's largest full-service providers of consumer and commercial banking, wealth management and mortgage products and services.
Regions International Banking services offer your company varied solutions in the everchanging international marketplace.
The trend: While regional banks have started off the new year strong, the top six reported 15% to 38% drops in their profits year over year from 2022 to 2023. As these banks' bread-and-butter businesses struggle, they're searching for new strategies that will help them kickstart growth.
The Federal Reserve defines community banking organizations as those with less than $10 billion in assets, and regional banking organizations as those with total assets between $10 billion and $100 billion.
"As with bigger institutions, local banks are safe banking options as long as they're federally insured," Insider says. When a bank is insured by the Federal Deposit Insurance Corporation (FDIC), funds deposited in an account are insured up to $250,000 in individual accounts and $500,000 in joint accounts.
