US Banks Poised to Profit as Higher Interest Rates Bite

US financial stocks are gaining attention as investors price in a tougher Federal Reserve after Kevin Warsh's latest inflation warning. Traders are now focusing on the cost of money and how it will affect US financial stocks exposed to rising interest rates. Three US financial stocks stand out, according to Simply Wall St's analysis: Horizon Bancorp (HBNC), Columbia Financial (CLBK), and Alerus Financial (ALRS). These banks have a clear link between Federal Reserve policy moves and their earnings power.

Horizon Bancorp is a Midwestern commercial and retail bank that generates revenue by turning deposit funding into interest-earning loans and investments. With a market cap of around $1 billion, the company has a smaller footprint compared to larger US banks but still matters in regional lending and deposit markets. Horizon Bancorp's net interest income stands at $63.49 million, and it is shifting towards higher-margin commercial lending while focusing on cost control.

Columbia Financial is another bank holding company tied directly to the rising rate theme. It generates around $267 million of revenue from financial services across commercial, residential, and consumer lending. With a market cap of roughly $3.2 billion, Columbia Financial is a mid-sized regional player focused on New Jersey and nearby markets. Its recent results show net interest income of $62.92 million for Q2 2026 and improving credit costs.

Alerus Financial fits the rising rates theme through its traditional balance sheet banking and lending spread model. The company has a mix of rate-sensitive banking income and fee-based wealth and retirement revenues, which could be reshaping its earnings power. With a market cap around $841 million, Alerus Financial is a smaller regional player with a broad deposit, lending, and fee franchises.