A super-regional bank has an extensive network of branches throughout the United States. However, it is not a significant national or global bank regarding its assets, revenue, and range of activities.

"super-regional" refers to banks with more than $50 billion in assets. Bank of New York Mellon (BoNY), KeyCorp, PNC Financial Services Group, and BB&T Corp. are some of the largest regional banks in the United States.

When it comes to financial institutions, a regional bank is defined as one that has a significant number of branches spread across a specific region (e.g., the Midwest, the Pacific Northwest, Texas, etc.). As defined by the Federal Reserve Board, regional banks are those with assets ranging from $10 billion to $100 billion.

There are two types of banks: community banks (those with assets of less than $10 million) and regional banks (those with more than $10 million). However, they also offer some of the ease and flexibility that larger national and international banks offer while still providing personalized care to their customers.

Understanding A Super Regional Bank

This type of bank is substantially larger than a typical regional or community bank, and it serves customers in numerous states or areas of the country at the same time. There are some reasons why super-regional banks are considered to be a middle-tier bank between regional and global banks. Some super-regional banks started as regional banks and expanded beyond state boundaries by acquiring deposits, branches, and clients from other banks.

To qualify as a super-regional bank, a bank must have at least $50 billion in assets. However, this is not the only factor. Bank of New York Mellon (BoNY), KeyCorp, PNC Financial Services Group, and BB&T Corp. are some of the largest regional banks in the United States.

Super-regional banks have been affected by the financial crisis's tightening restrictions despite their smaller size and lower systemic risk than money center banks (Citibank, JPMorgan, and Bank of America). During this time, the U.S. Federal Reserve was required to conduct regular liquidity assessments and stress tests on banks deemed "too big to fail."

In recent years, super-regional banking institutions have increased their services to include and broaden their involvement in investment banking and capital markets. With the help of acquisitions and market share gains, certain super-regional banks have developed tremendously.

Many companies have also expanded geographically and aggressively through acquisitions. KeyCorp and BB&T, for example, have grown hundreds of branches and major asset expansions through mergers and acquisitions in recent years.

Systemically Important Financial Institutions (SIFI)

Assets worth $50 billion or more were required to be included on the SIFI list. Because of this, several superregions have had to deal with additional regulations and reporting obligations. The Dodd-Frank Act was essentially repealed in 2018 following a surge of complaints from smaller banks who could not afford the price of complying with increased regulation.

This boosted the SIFI threshold from $100 billion to $250 billion in assets within 18 months. Smaller banks like KeyCorp and BB&T will no longer be classified as SIFI, even though the largest super regionals (PNC and BoNY) will remain in this category.

What Is the Best Way to Invest in Regional Banks?

Popular trading platforms like Fidelity, WeBull, and Robinhood allow retail investors to buy stock in regional banks. Many regional banks pay regular dividends, making them attractive among dividend investors. Additionally, numerous exchange-traded funds concentrate on regional banks. Passive investors seeking a broader view of the regional bank industry may find these investments appealing.

Five Regional Bank Advantages

• Access to ATMs and bank branches: As a general rule, regional banks have an extensive branch network, many acquired by other banks. In addition to their branch ATMs, regional banks often join other ATM networks to ensure the same level of access as a central bank. Even if you're going outside of the United States, a regional bank is likely to have ATMs in its network.
• You need to be able to access your money while you're on the go, and regional banks get that. They not only have the resources and talent to build innovative technology banking services, but their size enables them to roll out swiftly. Most bank services, such as mobile deposits and digital person-to-person transfers should be accessible through a mobile app or laptop.
• Because of their adaptability, regional banks can often offer their customers rates that are well below the national average. Regional banks can even outperform local banks in savings, money market accounts, and CDs. 3 Fees are expected to be competitive because they face competition from large banks and community lenders.
• Regarding investment goods and services, regional banks are likely to manage a portfolio as extensive as that of their national counterparts due to their size range. However, they can provide customers with a higher level of personalization. You're likely to have all your financial requirements taken care of from your first job out of high school through your golden years of retirement.
• Regional banks are well-positioned to play a significant role in assisting the communities they serve because of their size and geographical roots. Bankers in the region frequently give their time and resources to support local charities, schools, and other non-profit organizations.
• Regional banks aren't only donating money and time—they're also providing in-house financial literacy and wellness initiatives for their communities. They help their clients make better judgments about their own lives and the community.