<div id="readability-page-1"><p>Ohio certificate of deposit (CD) rates, which are fixed-interest savings products offered by banks, have climbed above 4% APY. As a result, one of the state's regional banks, LCNB Corporation (LCNB), is struggling to retain deposits despite offering higher rates.</p><h3>Claim 30% Off TipRanks Premium</h3><ul><li>Unlock  hedge fund-level data  and  powerful investing tools  for smarter, sharper decisions  </li><li> Stay ahead of the market with  the latest news and analysis  and maximize your portfolio's potential</li></ul> <p>This same pressure is now extending to regional bank ETFs, including the iShares U.S. Regional Banks ETF (IAT) and the SPDR S&amp;P Regional Banking ETF (KRE). Rising funding costs and geopolitical tensions appear to have rattled investors, prompting them to flee to safe-haven assets like gold.</p> <h2><strong>Gold Gains as Regional Bank ETFs Face Pressure</strong></h2> <p>Rising CD rates force banks to pay higher interest to keep deposits, increasing their funding costs and reducing profits. Because regional bank ETFs like IAT and KRE hold shares of these banks, weaker earnings can drag down their performance and prompt investors to pull back.</p> <p>Geopolitical tensions in early March added to pressure on regional bank ETFs, with KRE and IAT down 5.80% and 6.80%, respectively, over the past month. This follows the U.S.-Israeli strike on Iran in late February, which triggered an oil price spike and renewed inflation fears. Investors grew more wary of prolonged high interest rates, deepening their concerns about regional bank stability, which in turn weighed on both KRE and IAT ETFs.</p> <p>Historical stress in regional bank ETFs has often driven investors toward safe-haven assets. Gold hit an all-time high in late January 2026 as U.S.-China trade tensions and ensuing geopolitical developments bolstered investor demand. Meanwhile, central banks have been buying gold at a record pace for several years, and JPMorgan (JPM) projects continued strong demand in 2026, adding pressure on U.S. regional bank ETFs as investors seek safer assets.</p> <h2><strong>Top Holdings Boost Regional Bank ETFs' Outlook</strong></h2> <p>Despite pressure on regional bank ETFs, several individual holdings within the SPDR S&amp;P Regional Banking ETF and the iShares U.S. Regional Banks ETF have shown strong upside potential, according to TipRanks forecast data.</p> <p>For KRE:</p> <ul> <li>Banc of California Inc. (BANC): Analysts rate this stock a Strong Buy, with a projected average price target of $24.40 and an implied upside of 39.5%</li> <li>United Community Banks Inc. (UCB): Analysts rate this stock a Moderate Buy, projecting an average price target of $115.39, with an implied upside of 269.5%</li> <li>Coastal Financial Corp. (CCB): Analysts also rate this stock a Moderate Buy, with an average price target of $135.00 and an implied upside of 75.3%.</li> </ul></div>

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<p>Ohio CD rates have surpassed 4% APY, pressuring regional banks like LCNB Corporation to retain deposits. This has negatively impacted regional bank ETFs such as the iShares U.S. Regional Banks ETF (IAT) and SPDR S&P Regional Banking ETF (KRE), which have seen declines of 5.80% and 6.80% respectively. Geopolitical tensions and rising funding costs are driving investors towards gold as a safe-haven asset. Despite these challenges, some individual stocks within these ETFs, like Banc of California and United Community Banks, show strong upside potential according to analysts.</p>

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Regional Bank ETFs Under Pressure as Ohio CD Rates Hit 4% and Investors Flee to Gold