ZION - Regional bank stocks climb led by PacWest as deposits rise assets sold

June, 26 2023 01:00 PM Zions Bancorporation N.A.

2023-06-26 13:00:46 ET

Regional bank stocks rose in Monday midday trading after Federal Reserve data on Friday showed that U.S. bank deposits increased, indicating pressures may be easing on the sector.
The SPDR S&P Regional Banking ETF ( KRE ) rose 2.1%, outpacing the SPDR S&P Bank ETF ( KBE ) increase of 1.7% and contrasting with the S&P 500 ( SPX ) decline of 0.2% .
Leading the group, PacWest Bancorp ( PACW ) stock gained 6.9% in after it announcing that it sold a $3.5B specialty finance loan portfolio to Ares Management ( ARES ), as part of its plan to strengthen its balance sheet. That's in addition to Kennedy-Wilson's agreement to acquire a $5.7B loan portfolio in tranches, the first of which closed on June 9 .
Other regional bank stocks that suffered the most when customers rushed to withdraw deposits in March are seeing strong gains in their share prices. Metropolitan Bank Holding ( MCB ) j umped 6.7% , and Western Alliance ( WAL ) stock rose 4.1% .
First Republic Bank ( OTCPK:FRCB ) stock, which now trades over-the-counter after most of its assets were sold to JPMorgan Chase in May, surged 13% to $0.3251 per share.
Others on the rise include: Zions Bancorporation ( ZION ) +2.4% , Comerica ( CMA ) +2.8%, and M&T Bank ( MTB ) +2.7% .

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