Regional Bank Stocks Getting Crushed Monday: Here Are 19 Stocks Down 10% Or More

The collapse of Silicon Valley Bank SIVB last week has sent the banking sector into a spiral, with the government stepping in to help backstop depositors. The news has regional banking stocks trading down significantly on Monday. Here’s what you need to know and the major movers.

What Happened: The California Department of Financial Protection and Innovation closed Silicon Valley Bank and named the Federal Deposit Insurance Corporation (FDIC) as the bank’s receiver on Friday.

The move came after the 16th largest bank in the United States struggled to raise additional funding and saw huge outflows of deposits on Thursday.

The Federal Reserve Board announced funding to backstop the struggling bank with the Bank Term Funding Program. The funding will support depositors of the bank and businesses who held deposits with SVB Financial.

Over the weekend, U.S. regulators shut down Signature Bank SBNY, which marked the third-largest bank failure of all time. The regulators made the move to protect depositors who were told they would have full access to their deposits.

“The U.S. banking system remains resilient and on a solid foundation,” the Fed said.

Signature Bank was previously highlighted by a short seller who had correctly called out issues from FTX, Silvergate Capital SI and Silicon Valley Bank.

On Monday morning, over a dozen banking stocks were down by 10% or more in the premarket. Here is a look at the biggest movers in the financial sector on Monday.

Related Link: Shuttered Signature Bank's Deposits, Substantial Assets Transferred To Bridge Bank By FDIC: What You Should Know

Western Alliance Bancorp WAL: -82%

First Republic Bank FRC: -70%

Customers Bancorp CUBI: -56%

PacWest Bancorp PACW: -53%

Metropolitan Bank Holding MCB: -49%

Comerica Inc CMA: -46%

East West Bancorp EWBC: -41%

KeyCorp KEY: -34%

Zions Bancorp ZION: -28%

Bank of Hawaii BOH: -28%

Fifth Third Bancorp FITB: -27%

First Horizon Corp FHN: -22%

Huntington Bancshares HBAN: -20%

Truist Financial Corp TFC: -20%

Charles Schwab Corp SCHW: -19%

Mercury Fintech Holding MFH: -13%

Regions Financial RF: -13%

Citizens Financial Group CFG: -12%

AmeriServ Financial ASRV: -10%

Several of the bank stocks mentioned above have been halted to start the Monday trading session. Some of the banks have also released statements and updates on their liquidity concerns and exposures to other struggling banks.

ETFs with large exposure to regional banks are also seeing big declines Monday morning. The iShares US Regional Bank ETF IAT is down 17% at the time of writing. The Invesco KBW Bank ETF KBWB is down 14% on Monday. 

Bloomberg said the Invesco KBW Bank ETF had $245 million in outflows recently, marking one of the largest exits in 2023. 

Stay tuned to Benzinga Pro for all the latest headlines.

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