Sector Spotlight: Regional Banks

Hello. I’m Thang To, EVP and Head of our Investor Day practice here at Corbin Advisors. I’m excited to share that our Research Center of Excellence recently published a noteworthy piece on regional banks. As a former sell side banking analyst, I believe many banks have an opportunity to differentiate from the pack and bring their investment thesis to a broader audience.

We know there are many challenges associated with capturing investor mindshare and earning a premium valuation in a crowded regional banking sector. So we at Corbin want to share our insights garnered from over 24,000 Voice of Investor® interviews and banking sector experience. Our goal is to highlight the defining characteristics of premium valuation, outperformers and what you can do to close the gap and cut through the noise to attract investors.

Investors reward banks that demonstrate resilience across interest rates, cycles and economic shifts, balancing returns with disciplined risks and capital management. Equally important is management’s ability to shape investor perceptions, articulating how the bank sustains customer and deposit growth, manages credit quality, and enhances long-term profitability, while also ensuring these advantages are fully recognized in the market. In this piece, we share the five defining traits of outperformers and what four primary archetypes they fit into that set them apart for industry peers.

We evaluated 91 companies within the S&P 1500 regional banks and identified 18 banks as “Premium Outperformers”. This group maintained price to tangible book value multiples meaningfully above the sector average going back to 2017. We encourage you to review our white paper and then, importantly, identify under-appreciated characteristics that position your bank for long term success. If you have any questions or would like to discuss how Corbin can help you differentiate your investment thesis and attract investors, please contact me directly at thang.to@corbinadvisors.com. Thank you.