{"id":7931,"date":"2023-05-12T16:27:57","date_gmt":"2023-05-12T20:27:57","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/profit-risks-for-10-large-regional-banks-how-a-reversal-of-pandemic-deposit-trends-could-cut-earnings\/"},"modified":"2023-05-12T16:27:58","modified_gmt":"2023-05-12T20:27:58","slug":"profit-risks-for-10-large-regional-banks-how-a-reversal-of-pandemic-deposit-trends-could-cut-earnings","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=7931","title":{"rendered":"Profit risks for 10 large regional banks: How a reversal of pandemic deposit trends could cut earnings"},"content":{"rendered":"
\n

The worst may be over for U.S. banks, with liquidity fears that led to the recent failures of three regional institutions subsiding, but banks also face a longer-term challenge \u2014 a reversal of the flow of cash into noninterest-bearing transaction accounts during years of government and Federal-Reserve stimulus before and during the COVID-19 pandemic.<\/p>\n

This headwind doesn\u2019t threaten banks\u2019 existence \u2014 it threatens their profits.<\/p>\n

\n

David Konrad, managing director of equity research at Keefe, Bruyette & Woods provided two sets of earnings estimates for 10 large regional U.S. banks, based on the firm\u2019s expectations that deposit mixes will revert to 2019 levels, and another \u201cwhat if\u201d scenario.<\/p>\n

Bankers love checking accounts. They typically pay no interest on the cash and can draw fee income in various ways while processing checks and handing high volumes of other transactions for corporate clients. During the long period of the Fed\u2019s quantitative easing, including a vast increase in the U.S. money supply as the central bank purchased trillions of dollars of bonds, prices of most risk assets (such as stocks, bonds and real estate) increased. All together, this helped lead to a spike in demand deposits. <\/p>\n

Here are totals for noninterest-bearing deposits (NIBD) for the 10 banks KBW looked at as of March 31 and looking back four years. The banks are sorted alphabetically and all of the numbers are in billions:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n Bank<\/strong><\/p>\n<\/td>\n\n City<\/strong><\/p>\n<\/td>\n\n Total assets<\/strong><\/p>\n<\/td>\n\n March 2023 NIBD<\/strong><\/p>\n<\/td>\n\n March 2022 NIBD<\/strong><\/p>\n<\/td>\n\n March 2021 NIBD<\/strong><\/p>\n<\/td>\n\n March 2020 NIBD<\/strong><\/p>\n<\/td>\n\n March 2019 NIBD<\/strong><\/p>\n<\/td>\n<\/tr>\n
\n Citizens Financial Group Inc.<\/p>\n<\/td>\n\n Providence, R.I.<\/p>\n<\/td>\n\n $222<\/p>\n<\/td>\n\n $44.3<\/p>\n<\/td>\n\n $50.1<\/p>\n<\/td>\n\n $46.1<\/p>\n<\/td>\n\n $32.4<\/p>\n<\/td>\n\n $28.4<\/p>\n<\/td>\n<\/tr>\n
\n Fifth Third Bancorp<\/p>\n<\/td>\n\n Cincinnati<\/p>\n<\/td>\n\n $209<\/p>\n<\/td>\n\n $49.6<\/p>\n<\/td>\n\n $65.6<\/p>\n<\/td>\n\n $61.4<\/p>\n<\/td>\n\n $39.5<\/p>\n<\/td>\n\n $36.0<\/p>\n<\/td>\n<\/tr>\n
\n Huntington Bancshares Inc.<\/p>\n<\/td>\n\n Columbus, Ohio<\/p>\n<\/td>\n\n $189<\/p>\n<\/td>\n\n $36.8<\/p>\n<\/td>\n\n $43.8<\/p>\n<\/td>\n\n $31.2<\/p>\n<\/td>\n\n $21.0<\/p>\n<\/td>\n\n $20.0<\/p>\n<\/td>\n<\/tr>\n
\n KeyCorp<\/p>\n<\/td>\n\n Cleveland<\/p>\n<\/td>\n\n $198<\/p>\n<\/td>\n\n $37.3<\/p>\n<\/td>\n\n $50.4<\/p>\n<\/td>\n\n $47.5<\/p>\n<\/td>\n\n $29.3<\/p>\n<\/td>\n\n $28.0<\/p>\n<\/td>\n<\/tr>\n
\n M&T Bank Corp.<\/p>\n<\/td>\n\n Buffalo, N.Y.<\/p>\n<\/td>\n\n $203<\/p>\n<\/td>\n\n $60.0<\/p>\n<\/td>\n\n $58.5<\/p>\n<\/td>\n\n $53.6<\/p>\n<\/td>\n\n $35.6<\/p>\n<\/td>\n\n $30.0<\/p>\n<\/td>\n<\/tr>\n
\n PNC Financial Services Group Inc.<\/p>\n<\/td>\n\n Pittsburgh<\/p>\n<\/td>\n\n $562<\/p>\n<\/td>\n\n $118.0<\/p>\n<\/td>\n\n $119.0<\/p>\n<\/td>\n\n $120.6<\/p>\n<\/td>\n\n $81.6<\/p>\n<\/td>\n\n $71.6<\/p>\n<\/td>\n<\/tr>\n
\n Regions Financial Corp.<\/p>\n<\/td>\n\n Birmingham, Ala.<\/p>\n<\/td>\n\n $154<\/p>\n<\/td>\n\n $49.6<\/p>\n<\/td>\n\n $59.6<\/p>\n<\/td>\n\n $55.9<\/p>\n<\/td>\n\n $37.1<\/p>\n<\/td>\n\n $35.5<\/p>\n<\/td>\n<\/tr>\n
\n Truist Financial Corp.<\/p>\n<\/td>\n\n Charlotte, N.C.<\/p>\n<\/td>\n\n $574<\/p>\n<\/td>\n\n $128.7<\/p>\n<\/td>\n\n $150.4<\/p>\n<\/td>\n\n $136.6<\/p>\n<\/td>\n\n $97.6<\/p>\n<\/td>\n\n $53.0<\/p>\n<\/td>\n<\/tr>\n
\n U.S. Bancorp<\/p>\n<\/td>\n\n Minneapolis<\/p>\n<\/td>\n\n $682<\/p>\n<\/td>\n\n $124.6<\/p>\n<\/td>\n\n $129.8<\/p>\n<\/td>\n\n $126.8<\/p>\n<\/td>\n\n $91.4<\/p>\n<\/td>\n\n $74.6<\/p>\n<\/td>\n<\/tr>\n
\n Wells Fargo & Co.<\/p>\n<\/td>\n\n San Francisco<\/p>\n<\/td>\n\n $1,886<\/p>\n<\/td>\n\n $434.9<\/p>\n<\/td>\n\n $530.0<\/p>\n<\/td>\n\n $494.1<\/p>\n<\/td>\n\n $379.7<\/p>\n<\/td>\n\n $341.4<\/p>\n<\/td>\n<\/tr>\n
\n Source: FactSet, based on SEC filings.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

Based on the numbers above, here are year-over-year changes for the group\u2019s noninterest-bearing deposits over the past four years through March 31:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
\n Bank<\/strong><\/p>\n<\/td>\n\n March 2023 change in NIBD from year earlier<\/strong><\/p>\n<\/td>\n\n March 2022 change in NIBD from year earlier<\/strong><\/p>\n<\/td>\n\n March 2021 change in NIBD from year earlier<\/strong><\/p>\n<\/td>\n\n March 2020 change in NIBD from year earlier<\/strong><\/p>\n<\/td>\n<\/tr>\n
\n Citizens Financial Group Inc.<\/p>\n<\/td>\n\n -11.5%<\/p>\n<\/td>\n\n 8.8%<\/p>\n<\/td>\n\n 42.2%<\/p>\n<\/td>\n\n 14.1%<\/p>\n<\/td>\n<\/tr>\n
\n Fifth Third Bancorp<\/p>\n<\/td>\n\n -24.3%<\/p>\n<\/td>\n\n 6.9%<\/p>\n<\/td>\n\n 55.2%<\/p>\n<\/td>\n\n 9.9%<\/p>\n<\/td>\n<\/tr>\n
\n Huntington Bancshares Inc.<\/p>\n<\/td>\n\n -16.1%<\/p>\n<\/td>\n\n 40.3%<\/p>\n<\/td>\n\n 48.4%<\/p>\n<\/td>\n\n 5.0%<\/p>\n<\/td>\n<\/tr>\n
\n KeyCorp<\/p>\n<\/td>\n\n -26.0%<\/p>\n<\/td>\n\n 6.1%<\/p>\n<\/td>\n\n 62.3%<\/p>\n<\/td>\n\n 4.7%<\/p>\n<\/td>\n<\/tr>\n
\n M&T Bank Corp.<\/p>\n<\/td>\n\n 2.5%<\/p>\n<\/td>\n\n 9.1%<\/p>\n<\/td>\n\n 50.9%<\/p>\n<\/td>\n\n 18.6%<\/p>\n<\/td>\n<\/tr>\n
\n PNC Financial Services Group Inc.<\/p>\n<\/td>\n\n -0.9%<\/p>\n<\/td>\n\n -1.3%<\/p>\n<\/td>\n\n 47.8%<\/p>\n<\/td>\n\n 14.0%<\/p>\n<\/td>\n<\/tr>\n
\n Regions Financial Corp.<\/p>\n<\/td>\n\n -16.7%<\/p>\n<\/td>\n\n 6.6%<\/p>\n<\/td>\n\n 50.6%<\/p>\n<\/td>\n\n 4.7%<\/p>\n<\/td>\n<\/tr>\n
\n Truist Financial Corp.<\/p>\n<\/td>\n\n -14.4%<\/p>\n<\/td>\n\n 10.2%<\/p>\n<\/td>\n\n 39.9%<\/p>\n<\/td>\n\n 84.1%<\/p>\n<\/td>\n<\/tr>\n
\n U.S. Bancorp<\/p>\n<\/td>\n\n -4.0%<\/p>\n<\/td>\n\n 2.4%<\/p>\n<\/td>\n\n 38.6%<\/p>\n<\/td>\n\n 22.6%<\/p>\n<\/td>\n<\/tr>\n
\n Wells Fargo & Co.<\/p>\n<\/td>\n\n -17.9%<\/p>\n<\/td>\n\n 7.3%<\/p>\n<\/td>\n\n 30.1%<\/p>\n<\/td>\n\n 11.2%<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

For Truist Financial Corp.
\n TFC,<\/span>
\n the 84% increase in March 2020 NIDB from a year earlier reflected the old BB&T\u2019s acquisition of SunTrust of Atlanta to form Truist. <\/p>\n

The growth numbers were solid even in March 2020, just when the COVID pandemic was beginning to disrupt the U.S. economy, and for the most part continued through March 2022, which is when the Fed began to raise the federal-funds rate and gear up to reduce its bond holdings. The numbers for the first quarter of 2023 speak for themselves.<\/p>\n

A decline in noninterest-bearing deposits and possible outflow of other deposits as savers seek higher yields tempered banks\u2019 advantages from rising interest income on new or adjustable loans as interest rates rose over the past year. A bank\u2019s net interest margin (NIM) is its average yield on loans and securities investments less its average cost for deposits and wholesale borrowings. But NIM isn\u2019t a GAAP calculation; banks don\u2019t use a uniform method to calculate it.<\/p>\n

So here are FactSet\u2019s calculations for the group\u2019s net yields on average earning assets for the first quarter and previous four quarters:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n Bank<\/strong><\/p>\n<\/td>\n\n Q1 2023 net yield<\/strong><\/p>\n<\/td>\n\n Q4 2022 net yield<\/strong><\/p>\n<\/td>\n\n Q3 2022 net yield<\/strong><\/p>\n<\/td>\n\n Q2 2022 net yield<\/strong><\/p>\n<\/td>\n\n Q1 2022 net yield<\/strong><\/p>\n<\/td>\n<\/tr>\n
\n Citizens Financial Group Inc.<\/p>\n<\/td>\n\n 3.67%<\/p>\n<\/td>\n\n 3.21%<\/p>\n<\/td>\n\n 3.10%<\/p>\n<\/td>\n\n 2.79%<\/p>\n<\/td>\n\n 2.84%<\/p>\n<\/td>\n<\/tr>\n
\n Fifth Third Bancorp<\/p>\n<\/td>\n\n 3.14%<\/p>\n<\/td>\n\n 2.98%<\/p>\n<\/td>\n\n 2.81%<\/p>\n<\/td>\n\n 2.66%<\/p>\n<\/td>\n\n 2.53%<\/p>\n<\/td>\n<\/tr>\n
\n Huntington Bancshares Inc.<\/p>\n<\/td>\n\n 3.41%<\/p>\n<\/td>\n\n 3.30%<\/p>\n<\/td>\n\n 3.14%<\/p>\n<\/td>\n\n 3.03%<\/p>\n<\/td>\n\n 3.18%<\/p>\n<\/td>\n<\/tr>\n
\n KeyCorp<\/p>\n<\/td>\n\n 2.69%<\/strong><\/p>\n<\/td>\n\n 2.66%<\/strong><\/p>\n<\/td>\n\n 2.52%<\/p>\n<\/td>\n\n 2.48%<\/p>\n<\/td>\n\n 2.53%<\/strong><\/p>\n<\/td>\n<\/tr>\n
\n M&T Bank Corp.<\/p>\n<\/td>\n\n 4.23%<\/p>\n<\/td>\n\n 3.62%<\/p>\n<\/td>\n\n 3.13%<\/p>\n<\/td>\n\n 2.64%<\/p>\n<\/td>\n\n 2.75%<\/p>\n<\/td>\n<\/tr>\n
\n PNC Financial Services Group Inc.<\/p>\n<\/td>\n\n 2.80%<\/strong><\/p>\n<\/td>\n\n 2.89%<\/strong><\/p>\n<\/td>\n\n 2.64%<\/p>\n<\/td>\n\n 2.55%<\/p>\n<\/td>\n\n 2.69%<\/strong><\/p>\n<\/td>\n<\/tr>\n
\n Regions Financial Corp.<\/p>\n<\/td>\n\n 4.15%<\/p>\n<\/td>\n\n 3.82%<\/p>\n<\/td>\n\n 3.67%<\/p>\n<\/td>\n\n 3.41%<\/p>\n<\/td>\n\n 3.36%<\/p>\n<\/td>\n<\/tr>\n
\n Truist Financial Corp.<\/p>\n<\/td>\n\n 3.09%<\/p>\n<\/td>\n\n 3.01%<\/p>\n<\/td>\n\n 2.88%<\/p>\n<\/td>\n\n 2.80%<\/p>\n<\/td>\n\n 2.78%<\/p>\n<\/td>\n<\/tr>\n
\n U.S. Bancorp<\/p>\n<\/td>\n\n 3.12%<\/p>\n<\/td>\n\n 2.81%<\/p>\n<\/td>\n\n 2.84%<\/p>\n<\/td>\n\n 2.69%<\/p>\n<\/td>\n\n 2.65%<\/p>\n<\/td>\n<\/tr>\n
\n Wells Fargo & Co.<\/p>\n<\/td>\n\n 2.93%<\/p>\n<\/td>\n\n 2.57%<\/p>\n<\/td>\n\n 2.32%<\/p>\n<\/td>\n\n 2.15%<\/p>\n<\/td>\n\n 2.03%<\/p>\n<\/td>\n<\/tr>\n
\n Source: FactSet<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

Most of the first-quarter net yields were much higher than those a year earlier. A few figures in the table are bolded, to highlight that KeyCorp
\n KEY<\/span>
\n and PNC Financial Services Group Inc.
\n PNC<\/span>
\n showed the least improvement in net yields from a year earlier and that PNC was the only one to show a sequential narrowing of its net yield during the first quarter.<\/p>\n

Konrad wrote: \u201cWe currently expect noninterest-bearing deposits to shrink [as a] percentage of total deposits to pre-COVID levels (2019).\u201d But he acknowledged that this \u201cmay not be the best baseline\u201d because interest rates in 2019 were lower than they are today and because \u201cit has never been easier for customers to move money.\u201d<\/p>\n

KBW\u2019s current 2024 earnings estimates for the group incorporate the expectations that deposit mixes will revert to 2019 levels. But Konrad provided a second set of estimates based on reversions to deposit-mix averages from 2004 to 2010:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n Bank<\/strong><\/p>\n<\/td>\n\n Ticker<\/strong><\/p>\n<\/td>\n\n May 10 price<\/strong><\/p>\n<\/td>\n\n Current 2024 EPS estimate<\/strong><\/p>\n<\/td>\n\n 2024 EPS estimate if deposit mix reverts to 2004-2010 average<\/strong><\/p>\n<\/td>\n\n EPS % difference<\/strong><\/p>\n<\/td>\n\n P\/E based on current estimates<\/strong><\/p>\n<\/td>\n\n P\/E based on reversion<\/strong><\/p>\n<\/td>\n<\/tr>\n
\n Citizens Financial Group Inc.<\/p>\n<\/td>\n\n CFG<\/span>\n <\/td>\n\n $25.40<\/p>\n<\/td>\n\n $4.10<\/p>\n<\/td>\n\n $3.48<\/p>\n<\/td>\n\n -15%<\/p>\n<\/td>\n\n 6.2<\/p>\n<\/td>\n\n 7.3<\/p>\n<\/td>\n<\/tr>\n
\n Fifth Third Bancorp<\/p>\n<\/td>\n\n FITB<\/span>\n <\/td>\n\n $24.24<\/p>\n<\/td>\n\n $3.55<\/p>\n<\/td>\n\n $3.07<\/p>\n<\/td>\n\n -14%<\/p>\n<\/td>\n\n 6.8<\/p>\n<\/td>\n\n 7.9<\/p>\n<\/td>\n<\/tr>\n
\n Huntington Bancshares Inc.<\/p>\n<\/td>\n\n HBAN<\/span>\n <\/td>\n\n $9.58<\/p>\n<\/td>\n\n $1.35<\/p>\n<\/td>\n\n $1.03<\/p>\n<\/td>\n\n -24%<\/p>\n<\/td>\n\n 7.1<\/p>\n<\/td>\n\n 9.3<\/p>\n<\/td>\n<\/tr>\n
\n KeyCorp<\/p>\n<\/td>\n\n KEY<\/span>\n <\/td>\n\n $9.32<\/p>\n<\/td>\n\n $1.75<\/p>\n<\/td>\n\n $1.60<\/p>\n<\/td>\n\n -9%<\/strong><\/p>\n<\/td>\n\n 5.3<\/p>\n<\/td>\n\n 5.8<\/p>\n<\/td>\n<\/tr>\n
\n M&T Bank Corp.<\/p>\n<\/td>\n\n MTB<\/span>\n <\/td>\n\n $114.86<\/p>\n<\/td>\n\n $16.30<\/p>\n<\/td>\n\n $10.00<\/p>\n<\/td>\n\n -39%<\/strong><\/p>\n<\/td>\n\n 7.0<\/p>\n<\/td>\n\n 11.5<\/p>\n<\/td>\n<\/tr>\n
\n PNC Financial Services Group Inc.<\/p>\n<\/td>\n\n PNC<\/span>\n <\/td>\n\n $113.97<\/p>\n<\/td>\n\n $12.40<\/p>\n<\/td>\n\n $10.92<\/p>\n<\/td>\n\n -12%<\/p>\n<\/td>\n\n 9.2<\/p>\n<\/td>\n\n 10.4<\/p>\n<\/td>\n<\/tr>\n
\n Regions Financial Corp.<\/p>\n<\/td>\n\n RF<\/span>\n <\/td>\n\n $16.09<\/p>\n<\/td>\n\n $2.15<\/p>\n<\/td>\n\n $1.30<\/p>\n<\/td>\n\n -40%<\/strong><\/p>\n<\/td>\n\n 7.5<\/p>\n<\/td>\n\n 12.4<\/p>\n<\/td>\n<\/tr>\n
\n Truist Financial Corp.<\/p>\n<\/td>\n\n TFC<\/span>\n <\/td>\n\n $27.90<\/p>\n<\/td>\n\n $4.10<\/p>\n<\/td>\n\n $3.13<\/p>\n<\/td>\n\n -24%<\/strong><\/p>\n<\/td>\n\n 6.8<\/p>\n<\/td>\n\n 8.9<\/p>\n<\/td>\n<\/tr>\n
\n U.S. Bancorp<\/p>\n<\/td>\n\n USB<\/span>\n <\/td>\n\n $29.45<\/p>\n<\/td>\n\n $5.30<\/p>\n<\/td>\n\n $4.88<\/p>\n<\/td>\n\n -8%<\/strong><\/p>\n<\/td>\n\n 5.6<\/p>\n<\/td>\n\n 6.0<\/p>\n<\/td>\n<\/tr>\n
\n Wells Fargo & Co.<\/p>\n<\/td>\n\n WFC<\/span>\n <\/td>\n\n $38.28<\/p>\n<\/td>\n\n $4.50<\/p>\n<\/td>\n\n $4.10<\/p>\n<\/td>\n\n -9%<\/strong><\/p>\n<\/td>\n\n 8.5<\/p>\n<\/td>\n\n 9.3<\/p>\n<\/td>\n<\/tr>\n
\n Sources: Keefe, Bruyette & Woods; FactSet.<\/p>\n<\/td>\n\n <\/td>\n<\/tr>\n<\/table>\n

\u201cIn our view, KEY, USB and WFC are best positioned while MTB, RF and TFC are more at risk\u201d for earnings declines from shifting deposit mixes, especially in the scenario of a reversion to 2004-2010 deposit mixes, Konrad wrote. <\/p>\n

Among the 10 large regional banks, KBW has \u201cOutperform\u201d ratings on Fifth Third Bancorp
\n FITB,<\/span>
\n U.S. Bancorp
\n USB<\/span>
\n and Wells Fargo & Co
\n WFC,<\/span>
\n with neutral ratings on all the others, except for PNC Financial Services Group Inc.
\n PNC,<\/span>
\n which the firm rates \u201cUnderperform.\u201d <\/p>\n

Here\u2019s a summary of opinion about the 10 banks among analysts polled by FactSet:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n Bank<\/strong><\/p>\n<\/td>\n\n Ticker<\/strong><\/p>\n<\/td>\n\n Share \u201cbuy\u201d ratings<\/strong><\/p>\n<\/td>\n\n Share neutral ratings<\/strong><\/p>\n<\/td>\n\n Share \u201csell\u201d ratings<\/strong><\/p>\n<\/td>\n\n May 10 price<\/strong><\/p>\n<\/td>\n\n Consensus price target<\/strong><\/p>\n<\/td>\n\n Implied 12-month upside potential<\/strong><\/p>\n<\/td>\n<\/tr>\n
\n Citizens Financial Group Inc.<\/p>\n<\/td>\n\n CFG<\/span>\n <\/td>\n\n 65%<\/p>\n<\/td>\n\n 31%<\/p>\n<\/td>\n\n 4%<\/p>\n<\/td>\n\n $25.40<\/p>\n<\/td>\n\n $36.79<\/p>\n<\/td>\n\n 45%<\/p>\n<\/td>\n<\/tr>\n
\n Fifth Third Bancorp<\/p>\n<\/td>\n\n FITB<\/span>\n <\/td>\n\n 71%<\/p>\n<\/td>\n\n 29%<\/p>\n<\/td>\n\n 0%<\/p>\n<\/td>\n\n $24.24<\/p>\n<\/td>\n\n $32.80<\/p>\n<\/td>\n\n 35%<\/p>\n<\/td>\n<\/tr>\n
\n Huntington Bancshares Inc.<\/p>\n<\/td>\n\n HBAN<\/span>\n <\/td>\n\n 36%<\/p>\n<\/td>\n\n 50%<\/p>\n<\/td>\n\n 14%<\/p>\n<\/td>\n\n $9.58<\/p>\n<\/td>\n\n $12.92<\/p>\n<\/td>\n\n 35%<\/p>\n<\/td>\n<\/tr>\n
\n KeyCorp<\/p>\n<\/td>\n\n KEY<\/span>\n <\/td>\n\n 48%<\/p>\n<\/td>\n\n 39%<\/p>\n<\/td>\n\n 13%<\/p>\n<\/td>\n\n $9.32<\/p>\n<\/td>\n\n $14.43<\/p>\n<\/td>\n\n 55%<\/p>\n<\/td>\n<\/tr>\n
\n M&T Bank Corp.<\/p>\n<\/td>\n\n MTB<\/span>\n <\/td>\n\n 58%<\/p>\n<\/td>\n\n 42%<\/p>\n<\/td>\n\n 0%<\/p>\n<\/td>\n\n $114.86<\/p>\n<\/td>\n\n $153.98<\/p>\n<\/td>\n\n 34%<\/p>\n<\/td>\n<\/tr>\n
\n PNC Financial Services Group Inc.<\/p>\n<\/td>\n\n PNC<\/span>\n <\/td>\n\n 54%<\/p>\n<\/td>\n\n 35%<\/p>\n<\/td>\n\n 11%<\/p>\n<\/td>\n\n $113.97<\/p>\n<\/td>\n\n $143.12<\/p>\n<\/td>\n\n 26%<\/p>\n<\/td>\n<\/tr>\n
\n Regions Financial Corp.<\/p>\n<\/td>\n\n RF<\/span>\n <\/td>\n\n 54%<\/p>\n<\/td>\n\n 46%<\/p>\n<\/td>\n\n 0%<\/p>\n<\/td>\n\n $16.09<\/p>\n<\/td>\n\n $21.96<\/p>\n<\/td>\n\n 36%<\/p>\n<\/td>\n<\/tr>\n
\n Truist Financial Corp.<\/p>\n<\/td>\n\n TFC<\/span>\n <\/td>\n\n 40%<\/p>\n<\/td>\n\n 56%<\/p>\n<\/td>\n\n 4%<\/p>\n<\/td>\n\n $27.90<\/p>\n<\/td>\n\n $40.05<\/p>\n<\/td>\n\n 44%<\/p>\n<\/td>\n<\/tr>\n
\n U.S. Bancorp<\/p>\n<\/td>\n\n USB<\/span>\n <\/td>\n\n 44%<\/p>\n<\/td>\n\n 52%<\/p>\n<\/td>\n\n 4%<\/p>\n<\/td>\n\n $29.45<\/p>\n<\/td>\n\n $43.34<\/p>\n<\/td>\n\n 47%<\/p>\n<\/td>\n<\/tr>\n
\n Wells Fargo & Co.<\/p>\n<\/td>\n\n WFC<\/span>\n <\/td>\n\n 77%<\/p>\n<\/td>\n\n 23%<\/p>\n<\/td>\n\n 0%<\/p>\n<\/td>\n\n $38.28<\/p>\n<\/td>\n\n $48.53<\/p>\n<\/td>\n\n 27%<\/p>\n<\/td>\n<\/tr>\n
\n Source: FactSet<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

Click on the tickers for more about each company or index.<\/p>\n

Click\u00a0here\u00a0for Tomi Kilgore\u2019s detailed guide to the wealth of information available for free on the MarketWatch quote page.<\/p>\n

Don\u2019t miss:<\/strong> These banks have high exposure to loans secured by office properties \u2014 here\u2019s how their stocks have performed<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The worst may be over for U.S. banks, with liquidity fears that led to the recent failures of three regional institutions subsiding, but banks also face a longer-term challenge \u2014 a reversal of the flow of cash into noninterest-bearing transaction accounts during years of government and Federal-Reserve stimulus before and during the COVID-19 pandemic. This […]<\/p>\n","protected":false},"author":1,"featured_media":7932,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-7931","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"\nProfit risks for 10 large regional banks: How a reversal of pandemic deposit trends could cut earnings | iFintechWorld<\/title>\n<meta name=\"description\" content=\"The worst may be over for U.S. banks, with liquidity fears that led to the recent failures of three regional institutions subsiding, but banks also face a\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=7931\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta 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