Regional banks are lenders that operate across a state or group of states, taking deposits and making loans to households, small businesses and commercial clients. They're generally smaller than the largest national banks, and their results tend to track local economies, interest rates and credit quality, especially in commercial real estate. The industry keeps consolidating through mergers, so the lineup changes over time. This theme includes larger regional banks, mid-size lenders and ETFs that hold a broad basket of them.
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