PNC - Regional bank stocks mixed after JPMorgan acquires First Republic deposits assets

2023-05-01 11:07:38 ET

Regional bank stocks are mixed in Monday trading after the First Republic Bank ( NYSE: FRC ) crisis is resolved with the FDIC taking over the bank and selling most of its assets to JPMorgan Chase ( NYSE: JPM ).

The KBW Nasdaq Regional Banking Index ( KRX ) slipped 0.3% in midmorning trading, with the biggest declines registered by the two large regional banks that failed to win the bidding for First Republic ( FRC ).

PNC Financial Services ( NYSE: PNC ) stock fe ll 5.2% and Citizens Financial Group ( NYSE: CFG ) dropped 5.7% . Both were reported to be among the bidders for First Republic ( FRC ). Meanwhile, Wall Street giant JPM gained 3.1% .

The KBW Nasdaq Bank Index inched up 0.1% .

Notably, stocks that initially declined amid the angst over regional bank deposit withdrawals — PacWest Bancorp ( NASDAQ: PACW ) and Western Alliance Bancorporation ( NYSE: WAL ) — both notched gains, with PACW rising 0.4% and WAL up 2.1%.

Earlier on Monday, JPMorgan Chase ( JPM ) Jamie Dimon said he expects " this part of the crisis is over, " referring to the run in deposit withdrawals sparked by the failures of Silicon Valley Bank and Signature Bank in March. BofA analyst Ebrahim Poonawala said he expects that the " forced sales of banks due to deposit flight" has ended .

Other moves in regional bank stocks include: U.S. Bancorp ( NYSE: USB ) -0.8%, New York Community Bancorp ( NYSE: NYCB ), which acquired Signature Bank assets last month, +0.8%; KeyCorp ( NYSE: KEY ) -0.4%, Regions Financial ( NYSE: RF ) -2.1%, Truist Financial ( NYSE: TFC ) -0.9%, Huntington Bancshares ( NASDAQ: HBAN ) -0.2%, Bank OZK ( NASDAQ: OZK ), -0.2%; and M&T Bank ( NYSE: MTB ) -1.6%.

More on First Republic and the Bank Crisis:

• Acquiring First Republic Makes JPMorgan Even Stronger
• First Republic Bank stockholders are now creditors, joining line of claimants
• JPMorgan Chase's Dimon says 'this part of the crisis is over'
• JPMorgan pays $10.6B to FDIC for First Republic Bank acquisition

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