Fifth Third Bancorp (FITB)

Fifth Third Bancorp is a Midwest regional bank with a classic deposit-and-loan model.

Household and business deposits fund corporate loans, mortgages and auto lending; the rate spread supplies most of the result. A regional bank is distinguished by concentration: its book is tied to particular states' economies and the industries found there.

Fee income — corporate services, wealth management, payments — smooths the rate cycle. The risks are the sector's standard ones: book quality, commercial real estate exposure, deposit stability and capital requirements. The bank pays a dividend. Funding cost is a separate question: depositors now move money quickly to wherever the rate is higher, so a regional bank's deposit base is stickier in theory than in practice.