These regional banks are at greatest risk of being taken over by rivals, according to KBW
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A customer enters Comerica Inc. Bank headquarters in Dallas, Texas. Cooper Neill | Bloomberg | Getty Images A trio of regional banks faces increasing pressure on returns and profitability that makes them potential targets for acquisition by a larger rival, according to KBW analysts. Banks with between $80 billion and $120 billion in assets are in a tough spot, says Christopher McGratty of KBW. That's because this group has the lowest structural returns among banks with at least $10 billion in assets, putting them in the position of needing to grow larger to help pay for coming regulations — or struggling for years. Of eight banks in that zone, Comerica , Zions and First Horizon might ultimately be acquired by more profitable competitors, McGratty said in a Nov. 19 research note. Zions and First Horizon declined comment. Comerica didn't immediately have a response to this article. While two others in the cohort, Western Alliance and Webster Financial , have "