Regional banks and credit concerns: Here's what to know

Regional Bank Performance & Credit Quality - Regional bank reports are providing a sigh of relief with a focus on credit quality and loan book performance [2][3] - Truist's full-year net charge-off ratio was at the lower end of prior guidance, a positive sign for its balance sheet [3] - Huntington also reported better-than-expected guidance [3] - America and Fifth Third are moving higher on their respective results [4] Market Volatility & Investor Sentiment - Yesterday's sell-off was reminiscent of the spring of 2023, which saw several failures [4] - The decline in the KRE underperformed the IWM by 700 basis points on a two-day basis, the worst gap in a decade [5] - Investors seem to need little excuse to press sell on regional banks, alternative asset managers, and more in the current environment [7] Specific Bank Issues - Zions disclosed issues with a borrower, leading to a $50 million loss and a billion-dollar loss in market cap [5][6] - Western Alliance and Bank of California appear to be embroiled in a similar situation, but do not expect additional losses [6]