The sale announced Monday has not been completed.

It also sold some assets of a real-estate lending business to Roc360, a New York City firm that lends to real estate investors. Later that month it sold a $2.7 billion real-estate construction loan portfolio to Kennedy Wilson Holdings. In May, it said it was exploring strategic actions such as asset sales. Year to date its stock is still down 68.5% as of Friday’s close despite rallying from its lows in the spring. In the case of Silicon Valley Bank, he said 'there were certainly some management failures, and regulatory oversight could have been more robust.'įew banks came under more pressure during March than PacWest, which lost 17% of its deposits in the first quarter and posted a loss of $1.2 billion. He also said 'we welcome more regulation,' while noting that higher capital requirements don't solve every issue. Gibbons said Western Alliance has managed to bring back depositors in part by showing larger clients the bank's more granular financial data under nondisclosure agreements. Western Alliance's headquarters in Phoenix.

Wedbush reiterated a 'cautious outlook' for second quarter results, with the expectation there will be more downward revisions in net interest income once banks begin reporting in the second half of July. “The acute phase of bank stress is over, but a long and winding road remains,” Wedbush analyst David Chiaverini said in a Monday research note. Many banks also still face pressures from high interest rates and the possibility of stronger capital requirements for banks with more than $100 billion in assets, which will make it more difficult to earn robust profits.Įarlier this month, a number of US bank executives revised down their estimates of net interest income, the crucial margin between what banks make on their loans and pay for their deposits. Their deposits have fallen 6% since a peak in April 2022. Commercial banks have regained approximately $99 billion in deposits since the second week of May, according to data released Friday by the Federal Reserve.

The index closed 5% lower last Friday and slightly lower the previous week.Īnother positive note for banks is that their deposit withdrawals have stabilized. For the period, the KBW Regional Bank Index ( ^BKX) has gained 9%, outpacing the S&P 500. But since then, those stocks rallied for four of the last six weeks on optimism that the worst was over for regional banks.

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