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3 Bank Stocks Worth Buying Now With Attractive 4%+ Dividend Yields
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Key Takeaways
First Interstate BancSystem offers a 5.2% yield while balance-sheet optimization aids its core markets growth.
Southside Bancshares targets mid-single-digit loan growth in 2026 while maintaining a 4.9% dividend yield.
First Hawaiian expects 3%-4% loan growth in 2026 and offers a dividend yield of approximately 4.2%.
Dividend-paying bank stocks can appeal to income-focused investors by offering a combination of recurring cash returns and exposure to the financial sector. While the interest-rate environment, credit trends and funding costs continue to shape banks’ earnings prospects, institutions with resilient balance sheets, healthy capital levels and steady cash flows may be better positioned to sustain shareholder payouts.
Against this backdrop, investors seeking income opportunities may want to keep an eye on three bank stocks, including First Interstate BancSystem, Inc. (FIBK - Free Report) , Southside Bancshares Inc. (SBSI - Free Report) and First Hawaiian, Inc. (FHB - Free Report) , currently offering dividend yields above 4%. Each stock presently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Over the past three months, all three aforementioned bank stocks have declined, potentially giving investors a more attractive entry point to consider.
Price Performance
Image Source: Zacks Investment Research
Let’s take a closer look at what makes these three banks stand out in the current environment and the factors supporting their dividend payouts.
First Interstate BancSystem, headquartered in Billings, MT, is a community banking company that provides banking products and services to individuals, businesses and government entities across 12 states.
In 2025, the company began implementing a strategic plan focused on improving core profitability, optimizing its balance sheet and concentrating capital and resources on its core franchise. In line with these priorities, FIBK expects earnings to benefit from the repricing and reinvestment of maturing fixed-rate loans and securities, while its granular, low-cost deposit base is expected to generate net interest income (NII) in 2026.
As part of this effort, FIBK is also refining its branch network and reducing its presence in markets that are less aligned with its strategic priorities. In the second quarter of 2026, the company sold 11 Nebraska branches and closed six branches across Minnesota, Nebraska, and North Dakota.
Earlier, in October 2025, FIBK completed the divestiture of its banking operations in Arizona and Kansas. These actions are intended to redirect capital and resources toward core markets where FIBK has meaningful market share and attractive growth prospects. In line with this strategy, the company remains focused on deepening customer relationships through loan and deposit growth and expanding organically in established markets. Continued balance-sheet optimization and disciplined capital deployment are expected to further support efficiency and profitability.
The company maintains a solid liquidity position. As of June 30, 2026, FIBK had $1.17 billion in cash and cash equivalents, while total debt stood at nearly $752 million (60.5% being short-term in nature). It currently has a dividend yield of 5.2%. Over the past five years, it has increased its dividend once and has a 58% payout ratio. Check First Interstate BancSystem’s dividend history here.
First Interstate BancSystem, Inc. Dividend Yield (TTM)
Southside Bancshares, headquartered in Tyler, TX, is the holding company for Southside Bank, a community-focused financial institution offering consumer and commercial loans, deposit products, wealth management, trust and brokerage services across Texas.
SBSI is focused on expanding its Texas franchise while maintaining a disciplined balance sheet and capital management. The company is targeting loan growth by leveraging its presence in attractive Texas markets and a healthy loan pipeline, while newer construction loans are expected to begin funding in the second half of 2026. As a result, management expects mid-single-digit loan growth in 2026.
Alongside organic growth, the company is also evaluating bank acquisitions in Texas to expand its presence in key markets and strengthen its franchise, with potential deals aimed at filling geographic gaps in Dallas, Houston, Austin, East Texas and Southeast Texas.
Although higher funding costs are likely to keep some pressure on margins, management expects continued NII growth through the end of 2026. Repricing of certain lower-yielding fixed-rate loans is expected to support interest income, while SBSI’s asset-sensitive balance sheet could provide additional support to NII if interest rates remain stable or move higher.
As of June 30, 2026, SBSI had $397 million in cash and cash equivalents. The company also held $996 million in short-term borrowings and $628 million in long-term debt. Despite the weak liquidity position, it continued to maintain its dividend, raising it three times over the past five years (most recently by 2.8% in August 2026). The company currently offers a 4.9% dividend yield and has a 47% payout ratio. Check Southside Bancshares’ dividend history here.
First Hawaiian, headquartered in Honolulu, HI, is a community bank that provides commercial and consumer banking, wealth management, trust, credit card and merchant processing services across Hawaii, Guam and Saipan.
The company is strengthening its relationship-banking franchise while expanding its geographic footprint. In July 2026, First Hawaiian agreed to acquire TriCo Bancshares, the parent of Tri Counties Bank, in an all-stock transaction. The combination is expected to create a company with approximately $34 billion in assets, expand FHB’s mainland presence and provide greater geographic diversification and broader banking capabilities, subject to regulatory and shareholder approvals.
Alongside this expansion, FHB is focused on navigating the higher-rate environment through its asset-sensitive balance sheet and disciplined deposit-cost management. The company expects loan growth to support earning-asset yields, while disciplined deposit pricing is helping manage funding costs and support net interest margin (NIM). Management expects loans to increase 3-4% in 2026 compared with $14.14 billion recorded in 2025. Meanwhile, it also expects 2026 NIM of 3.24-3.25%, up from 3.15% in 2025.
FHB also maintains a solid liquidity position, with $1 billion in cash and cash equivalents and no short-term borrowings as of June 30, 2026. The company has consistently paid quarterly dividends, raising its payout by 8.3% to 26 cents per share in January 2019 and maintaining it since then. The stock currently offers a dividend yield of 4.2%. Check First Hawaiian’s dividend history here.
View the Zacks #1 Rank List
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3 Bank Stocks Worth Buying Now With Attractive 4%+ Dividend Yields
Key Takeaways
Dividend-paying bank stocks can appeal to income-focused investors by offering a combination of recurring cash returns and exposure to the financial sector. While the interest-rate environment, credit trends and funding costs continue to shape banks’ earnings prospects, institutions with resilient balance sheets, healthy capital levels and steady cash flows may be better positioned to sustain shareholder payouts.
Against this backdrop, investors seeking income opportunities may want to keep an eye on three bank stocks, including First Interstate BancSystem, Inc. (FIBK - Free Report) , Southside Bancshares Inc. (SBSI - Free Report) and First Hawaiian, Inc. (FHB - Free Report) , currently offering dividend yields above 4%. Each stock presently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Over the past three months, all three aforementioned bank stocks have declined, potentially giving investors a more attractive entry point to consider.
Price Performance
Image Source: Zacks Investment Research
Let’s take a closer look at what makes these three banks stand out in the current environment and the factors supporting their dividend payouts.
First Interstate BancSystem, headquartered in Billings, MT, is a community banking company that provides banking products and services to individuals, businesses and government entities across 12 states.
In 2025, the company began implementing a strategic plan focused on improving core profitability, optimizing its balance sheet and concentrating capital and resources on its core franchise. In line with these priorities, FIBK expects earnings to benefit from the repricing and reinvestment of maturing fixed-rate loans and securities, while its granular, low-cost deposit base is expected to generate net interest income (NII) in 2026.
As part of this effort, FIBK is also refining its branch network and reducing its presence in markets that are less aligned with its strategic priorities. In the second quarter of 2026, the company sold 11 Nebraska branches and closed six branches across Minnesota, Nebraska, and North Dakota.
Earlier, in October 2025, FIBK completed the divestiture of its banking operations in Arizona and Kansas. These actions are intended to redirect capital and resources toward core markets where FIBK has meaningful market share and attractive growth prospects. In line with this strategy, the company remains focused on deepening customer relationships through loan and deposit growth and expanding organically in established markets. Continued balance-sheet optimization and disciplined capital deployment are expected to further support efficiency and profitability.
The company maintains a solid liquidity position. As of June 30, 2026, FIBK had $1.17 billion in cash and cash equivalents, while total debt stood at nearly $752 million (60.5% being short-term in nature). It currently has a dividend yield of 5.2%. Over the past five years, it has increased its dividend once and has a 58% payout ratio. Check First Interstate BancSystem’s dividend history here.
First Interstate BancSystem, Inc. Dividend Yield (TTM)
First Interstate BancSystem, Inc. dividend-yield-ttm | First Interstate BancSystem, Inc. Quote
Southside Bancshares, headquartered in Tyler, TX, is the holding company for Southside Bank, a community-focused financial institution offering consumer and commercial loans, deposit products, wealth management, trust and brokerage services across Texas.
SBSI is focused on expanding its Texas franchise while maintaining a disciplined balance sheet and capital management. The company is targeting loan growth by leveraging its presence in attractive Texas markets and a healthy loan pipeline, while newer construction loans are expected to begin funding in the second half of 2026. As a result, management expects mid-single-digit loan growth in 2026.
Alongside organic growth, the company is also evaluating bank acquisitions in Texas to expand its presence in key markets and strengthen its franchise, with potential deals aimed at filling geographic gaps in Dallas, Houston, Austin, East Texas and Southeast Texas.
Although higher funding costs are likely to keep some pressure on margins, management expects continued NII growth through the end of 2026. Repricing of certain lower-yielding fixed-rate loans is expected to support interest income, while SBSI’s asset-sensitive balance sheet could provide additional support to NII if interest rates remain stable or move higher.
As of June 30, 2026, SBSI had $397 million in cash and cash equivalents. The company also held $996 million in short-term borrowings and $628 million in long-term debt. Despite the weak liquidity position, it continued to maintain its dividend, raising it three times over the past five years (most recently by 2.8% in August 2026). The company currently offers a 4.9% dividend yield and has a 47% payout ratio. Check Southside Bancshares’ dividend history here.
Southside Bancshares, Inc. Dividend Yield (TTM)
Southside Bancshares, Inc. dividend-yield-ttm | Southside Bancshares, Inc. Quote
First Hawaiian, headquartered in Honolulu, HI, is a community bank that provides commercial and consumer banking, wealth management, trust, credit card and merchant processing services across Hawaii, Guam and Saipan.
The company is strengthening its relationship-banking franchise while expanding its geographic footprint. In July 2026, First Hawaiian agreed to acquire TriCo Bancshares, the parent of Tri Counties Bank, in an all-stock transaction. The combination is expected to create a company with approximately $34 billion in assets, expand FHB’s mainland presence and provide greater geographic diversification and broader banking capabilities, subject to regulatory and shareholder approvals.
Alongside this expansion, FHB is focused on navigating the higher-rate environment through its asset-sensitive balance sheet and disciplined deposit-cost management. The company expects loan growth to support earning-asset yields, while disciplined deposit pricing is helping manage funding costs and support net interest margin (NIM). Management expects loans to increase 3-4% in 2026 compared with $14.14 billion recorded in 2025. Meanwhile, it also expects 2026 NIM of 3.24-3.25%, up from 3.15% in 2025.
FHB also maintains a solid liquidity position, with $1 billion in cash and cash equivalents and no short-term borrowings as of June 30, 2026. The company has consistently paid quarterly dividends, raising its payout by 8.3% to 26 cents per share in January 2019 and maintaining it since then. The stock currently offers a dividend yield of 4.2%. Check First Hawaiian’s dividend history here.
First Hawaiian, Inc. Dividend Yield (TTM)
First Hawaiian, Inc. dividend-yield-ttm | First Hawaiian, Inc. Quote