All articles tagged with #us regional banks
Global markets experienced declines amid concerns over US regional bank stability, rising gold prices, and geopolitical tensions, with US stocks and Asian markets showing caution. Bond yields fell, and the US dollar weakened, reflecting investor nervousness about credit quality and economic outlooks.
New York Community Bank's earnings report sparked a sell-off in regional bank shares, highlighting the ongoing sensitivity of regional lenders to high Federal Reserve interest rates and commercial real estate pressures. The sell-off, which saw NYCB's stock plummet 45% in two days, serves as a cautionary sign for investors, indicating that the sector's profitability will continue to be squeezed by rising deposit costs. While some investors see opportunities to buy into select banks with solid balance sheets, others remain wary of the impact of high rates on regional banks.
Shares of US regional banks, including New York Community Bancorp (NYCB), continued to decline, with the KBW Regional Banking Index falling 1.4% after NYCB's surprise loss and dividend cut. NYCB's acquisition of Signature Bank and Flagstar Bank pushed its assets above a $100 billion regulatory threshold, leading to stricter requirements. Analysts believe NYCB's issues are unique, but Moody's has put its ratings on review for a potential downgrade. Concerns about eroding net interest income (NII) and exposure to troubled commercial real estate (CRE) are also impacting regional banks, with investors expecting a non-recessionary and lower interest rate environment.
Shares of US regional banks are sliding as higher interest rates are dimming the profit outlook for these institutions. The rise in rates is expected to increase borrowing costs for consumers and businesses, potentially slowing down loan demand and impacting the profitability of regional banks.
Executives of US regional banks are buying shares in their own companies at a three-year high in an effort to restore investor confidence following the collapse of Silicon Valley Bank. The buying frenzy was last seen in Q1 2020 when stocks sold off due to the spread of COVID-19. US Bancorp, East West Bancorp, Zions Bancorp, and SoFi Technologies are among the 244 banks that saw heavy insider buying in Q2 2023. The ratio of buyers to sellers in the regional banking sector has also hit a record high in Q2 2023.
Shares of US regional banks fell after Treasury Secretary Janet Yellen told bank CEOs that more mergers may be necessary following a series of bank failures. The KBW Regional Banking Index fell 2.2%, with PacWest Bancorp and Western Alliance among the biggest losers. The regional bank crisis has been partly blamed on aggressive interest rates by the US Federal Reserve. Fed Chairman Jerome Powell said the after-effect of recent banking sector troubles is expected to take some pressure off the US central bank's interest rate hiking cycle.
Shares of US regional banks surged after Western Alliance Bancorp reported strong deposit growth, indicating that customers remained confident of its financial health despite recent failures of other regional lenders. The KBW Regional Banking Index rose 7.3%, reaching its highest level since May 1. While the earnings environment for regional banks will still be impaired, the period of emergency seems to be dissipating and there's more focus on the fundamentals. Regulators need to work together with the regional banking industry to find policy options that will help bring back consumer confidence and stability to the financial system.
Shares of US regional banks, including Western Alliance Bancorp, rallied after the bank reported that deposits had grown by more than $2 billion since the end of the quarter, easing concerns about the health of US regional lenders. The KBW Regional Banking Index rose 2.4% as a result. The sector has been under pressure since March, when a series of firms collapsed. Western Alliance has demonstrated "stability amid an uncertain operating backdrop," according to Bloomberg Intelligence analysts.
Shares of US regional banks, including PacWest Bancorp, Western Alliance Bancorp, Fifth Third Bancorp, Comerica Inc, and KeyCorp, rose as investors tried to look past the crisis of confidence brought on by the collapse of three banks in two months. The KBW Regional Banking Index, which had lost 13.7% so far this month, rose 2%. Despite deposits rising, investors have remained wary of any reassurances from analysts and regulators on the stability of the regional banks. Deposits at US banks climbed to $17.16tn in the week ended May 3, up about $67bn to mark the first increase in four weeks.
US regional banks are facing a crisis of confidence as deposit flight has forced them to pull back on lending, with three banks collapsing and others being hit. The uncertain economic outlook and other risks are adding to the pressure, and continued stress on these banks could push the economy into a recession. Regulators, bankers, and experts are floating ideas for additional steps Washington could take to stamp out the crisis, but those options either encourage things that regulators don't want or are steps that have not really worked in the past. This leaves regulators with tools that treat the symptoms but have unwanted side effects and don't provide the cure, creating a vicious cycle and putting pressure on regulators to intervene again.
Shares of major US regional lenders, including Comerica, Fifth Third Bancorp, and KeyCorp, fell between 1% and 2% in early trading on Friday, highlighting the sector's volatile status quo as concerns of a deepening banking crisis rattled investors. The KBW Regional Banking index has fallen nearly 14% so far this month. The Federal Deposit Insurance Corporation (FDIC) said on Thursday it will charge lenders with a special assessment fee of 0.125% on uninsured deposits in excess of $5 billion. Charles Schwab shares were up 2.5% after the banking and brokerage firm said that so far in May, it had seen fewer clients move their funds away from its accounts to other high-yield products.
Blackstone is reportedly in discussions with several US regional banks to form lending partnerships, as the private equity firm seeks to expand its financial services offerings. The potential partnerships would allow Blackstone to offer loans to its portfolio companies through the banks, while also providing the banks with a new source of revenue.
Wall Street was subdued as the rally in US regional bank stocks lost steam, with investors cautious ahead of the Federal Reserve's policy meeting.
PacWest Bancorp led a rally in US regional banks after announcing a cut in its quarterly dividend to one cent to accelerate capital build plans. The bank's shares rose as much as 42% in premarket trading, while other regional lenders, including Western Alliance Bancorp and Zions Bancorp, also rallied. The bounce follows a tumultuous week for regional lenders that ended with a sharp rally higher on Friday.
PacWest Bancorp's shares rose by 16% in premarket trading after it slashed its quarterly dividend and reassured investors that its business remains "sound." Other regional banks, including Western Alliance Bancorp and Zions Bancorp, also rallied after a selloff fueled by concerns over the health of the financial system and the recent collapse of several lenders. However, doubts remain over the stability of these banks, with rating agency Fitch placing PacWest on 'Rating Watch Negative.'