Regional bank stocks take a hit
According to MarketWatch, regional banks stocks took a hit Monday as news of slow loan growth and difficult interest margins put a dent in the stocks.
Banc of California Inc. was down nearly 5% after reporting quarterly results Friday that missed expectations, and Gary Tenner at D.A. Davidson & Co. knocked down his predictions for the stock price.
It’s also the start of bank conference season, and the mood following last week’s BancAnalysts Association of Boston conference was pretty melancholy. The general consensus, analysts said, was that if the cold fear of the financial crisis is gone, what it’s been replaced by is growth that’s only slow and toilsome. The recurring themes were controlling costs, the declining mortgage banking business and unimpressive loan demand. “Uninspiring tone” is how analysts at Evercore summed it up.