Is Regional Bank Crisis Over? This Week Will Tell

Four days this week (July 18-July 21) will provide important information and insights into the U.S. regional bank industry. During that period, all eleven regional banks in the S&P 500 Stock Index will report a slew of key data and commentary: revenues and earnings, of course, but also deposit flows, loan demand, net interest margin, and changes in allowances for loan and leases. In addition, changes in management, operations, and strategies. Then there are the all-important outlooks – not only where managements see their banks headed, but also what the risks are over the next year or two.

All eleven banks’ stocks have risen significantly from their recent lows. Thus, investors and analysts are expecting the crisis-fears generated during the selloffs are now moderated. Because managements must remain silent for four weeks prior to reporting their earnings and other information, those lower-risk expectations now will be tested.