Regional Bank Stocks Are In A Sea of Red

The banking sector is one of the worst performing sectors year-to-date. The effects of the banking crisis earlier this year are still being felt by the banks and to add to the pain, rising interest rates have only made it worse. The S&P 500 is up by just over 10% YTD on price basis as of last Friday. However the KBW Nasdaq Bank Index bank is down by 28%. Many of the regional bank stocks are down even more.

The following table shows the year-to-date price change of the major regional bank stocks:

S.No.NameTickerStock on Price on Oct 20, 2023 closeYear-to-date Change
1US BancorpUSB $30.93 -30.7%
2PNC Financial Services Group IncPNC $111.82 -29.9%
3Truist Financial CorpTFC $27.16 -37.7%
4M&T Bank CorpMTB $113.77 -21.5%
5First Citizens Bancshares Inc Class AFCNCA $1,308.66 74.1%
6Fifth Third BancorpFITB $23.29 -28.6%
7Huntington Bancshares IncHBAN $9.64 -31.6%
8Regions Financial CorpRF $14.44 -32.7%
9Citizens Financial Group IncCFG $23.76 -39.8%
10KeycorpKEY $9.89 -43.8%
11New York Community Bancorp IncNYCB $10.10 16.9%
12East West Bancorp IncEWBC $51.48 -22.0%
13Webster Financial CorpWBS $38.19 -18.4%
14First Horizon CorpFHN $10.57 -56.7%
15Cullen Frost Bankers IncCFR $86.10 -33.8%
16Commerce Bancshares IncCBSH $45.31 -32.9%
17Comerica IncCMA $37.95 -42.5%
18Southstate CorpSSB $65.56 -13.8%
19Prosperity Bancshares IncPB $50.73 -29.6%
20Pinnacle Financial Partners IncPNFP $61.64 -13.5%
21Western AllianceWAL $42.22 -27.8%
22Wintrust Financial CorpWTFC $74.14 -11.4%
23Zions BancorporationZION $29.96 -38.1%
24Popular IncBPOP $60.55 -7.7%
25Home Bancshares IncHOMB $20.58 -8.4%
26FNB CorpFNB $10.69 -17.9%
27Bank OzkOZK $35.60 -9.4%
28Synovus Financial CorpSNV $25.49 -31.1%
29United Bankshares IncUBSI $26.22 -34.6%
30Valley NationalVLY $7.82 -30.7%
31Glacier Bancorp IncGBCI $29.74 -39.4%
32First Financial Bankshares IncFFIN $23.13 -32.1%
33UMB Financial CorpUMBF $60.91 -26.2%
34BOKFinancial CorpBOKF $72.90 -26.3%
35TFS Financial CorpTFSL $11.07 -23.2%

Note: All the banks listed above are in the iShares U.S. Regional Banks ETF (IAT).

A few observations:

  • Of the stocks listed above only First Citizens Bancshares Inc Class A and New York Community Bancorp Inc are in the positive region YTD. First Citizens is an exception since it soared after its acquisition of the failed Silicon Valley Bank.
  • The worst performer so far is First Horizon Corp which has plunged by over 56%. Others such as Keycorp and Comerica Inc have declined by over 40% as well.
  • Many of the worst performers are mainly due to their exposure to commercial real estate industry.
  • Overall its not a pretty picture as regional bank investors are nursing heavy losses so far this year.

Disclosure: Long USB and GBCI

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