Regional banks still have room to run and thrive even as it is "easy to overstate the advantage" for big banks, says Truist Securities in its latest note, highlighting three key paths for regional banks to succeed.

What Happened: Big banks have clear economies of scale, and they have been re-rated relative to small banks with the top five U.S. banks holding about 47% market share for a decade. According to the Truist Securities note, dated Jan. 6, the big banks are in a better position, but at the same time, individual regionals can position themselves to thrive.

Truist initiated...