The U.S. election could change the legislative, supervisory and regulatory framework for the banking industry. In the episode, we discuss what different election outcomes could mean for banks with three guests focused on policy, regulation and rulemaking: Paul Merski, executive vice president, congressional relations and strategy at the Independent…

The operating environment remains challenging for many banks but experts at Raymond James’ annual whole loan conference in September 2024 noted there is a growing acceptance and willingness to pursue deals to counter headwinds facing the group. In the episode, three veterans at Raymond James – John Toohig, head of whole loan trading; Bill Sammon, h…

Rate hikes by the Federal Reserve and changes in post-pandemic behavior have put pressure on commercial real estate (CRE) borrowers needing to refinance loans coming due. The tally is nothing to sneeze at, with approximately $950 billion in CRE mortgages set to mature in 2024, according to S&P Global Market Intelligence's analysis of nationwide pro…

Bank stocks and regional bank stocks in particular have rallied over the last month and there is further room to run, according to Joe Fenech, Chief Investment Officer at GenOpp Capital Management. In the episode, recorded on July 16, Fenech said that sentiment towards bank stocks is improving and that the long bear market in bank stocks ended in M…

Tales from Top Performers features conversations with executives at high-performing banks about their view of current issues, and the greatest challenges and opportunities they see ahead. This episode features executives from three of the highest performing banks in the country: Curtis Griffith, chairman and CEO of Lubbock, Texas-based South Plains…

Deposits and liquidity remain at the forefront for most bankers and the intense competition for core funding will eventually lead to a resurgence in M&A activity. That was the message delivered by a variety of presenters at S&P Global Market Intelligence’s annual community bankers conference on May 20 and 21, but they acknowledged that transactions…

The investment community has expressed great concern over commercial real estate and questioned whether a severe downturn could lie on the horizon, but Rich Hill, head of real estate strategy and research at Cohen & Steers, is not in the camp. In the episode, Hill discussed the misconceptions about commercial real estate, the considerable differenc…

Tales from Top Performers is a new series under the Street Talk banner that will feature conversations with executives at high-performing banks about their bank and experience in the sector; their view of current issues, and the greatest challenges and opportunities they see ahead. The inaugural episode features a discussion between James Beckwith,…

The banks that failed in the spring of 2023 were outliers that violated some of the golden rules of banking, but many investors continue to unfairly paint the bank group with a broad brush, according to KBW CEO Tom Michaud. In the episode, Michaud discussed the drivers of the large bank failures in 2023 and the idiosyncrasies of those institutions.…

Regulatory scrutiny has intensified in the aftermath of the liquidity crunch that erupted in 2023 and could play an even larger role in bank M&A activity in 2024 by motivating more banks to consider selling, while also standing in the way of some transactions. The episode features views presented by advisers at Hovde Group, KBW and Luse Gorman at t…

U.S. banks’ fourth-quarter 2023 earnings demonstrated continued pressure on funding costs and minimal slippage in credit quality. The Street largely took the results in stride, but management teams were hopeful that net interest margin pressure could subside in the second half of 2024 and credit quality would hold up in the face of a higher for lon…

The word unprecedented became commonplace in banking circles in 2023. The Federal Reserve’s rate hike campaign pushed bank balance sheets deeply underwater, spurred deposit outflows and exposed asset/liability mismatches at some institutions that culminated in record-breaking bank runs that led to the second, third and fourth largest bank failures …

Bank stocks have rallied since the Federal Reserve offered hopes of rate cuts in 2024 and there are further catalysts on the horizon, including a pickup in M&A activity, according to Mendon Capital Advisors President Anton Schutz. In the episode, the veteran bank stock investor offered his view of bank stock valuations, credit quality, bond portfol…

The negative impact from higher interest rates has led a number of banks to considering balance sheet restructurings and a few institutions have pursued those transactions by unlocking capital through sales of business lines or merging with another company, according to Bill Burgess, co-head of financial services investment banking at Piper Sandler…

As community banks face a challenging operating environment due to higher for longer rates and heightened regulatory scrutiny, Tony Scavuzzo, managing principal at Castle Creek Capital, expects private equity investing in the sector to increase. In the episode, the private equity veteran said he expects new investments to support independent banks …

Many bank boards are stuck as they face investor scrutiny and wait for slippage in credit quality, but experts at Raymond James’ inaugural whole loan conference noted that private equity firms are waiting to infuse capital into institutions so they can play offense in the future.In the episode, John Toohig, head of whole loan trading at Raymond Jam…

In the latest Street Talk podcast, Davis Polk Partner David Portilla says implementing early remediation triggers outlined in the Dodd-Frank Act would be more effective than the Basel III endgame to avoid repeating the spring 2023 bank failures. In the episode, Portilla made the case for enacting early remediation triggers proposed in section 166 o…

Banc of California Inc.'s plans to acquire PacWest Bancorp, the largest bank deal thus far of 2023, offers some hope that a rebound in bank M&A could be on the horizon, but advisers acknowledged that the unique nature of the transaction makes it stand apart. In the latest Street Talk podcast, members of the S&P Global Market Intelligence news team …

Many regional banks’ second-quarter earnings might have fallen short of the Street’s estimates, but results contradicted the bear case that weighed heavily on the institutions’ stock prices during the spring, according to Terry McEvoy, managing director at Stephens. In the episode recorded on July 24, McEvoy, the superregional bank analyst at Steph…

The liquidity crunch that erupted in March made deposits more precious, but performance has diverged between institutions of different sizes and regions, according to Josh Siegel, chairman and CEO of StoneCastle Partners. In the episode, Siegel discussed the liquidity pressures facing the industry and how they far more acute for regional banks than…

While many banks are being unfairly painted with a broad brush, institutions will face tougher regulatory examinations and pressure on probability and that should ultimately lead to a strong rebound in bank M&A activity. Those views were delivered by members of the investment and advisory community during two panel discussions focused on bank liqui…

Brad Rinschler, managing partner at Down Range Capital Management, said in the latest "Street Talk" podcast that he believes valuations of many banks are attractive. In the episode, Rinschler and Connor Labozzetta, a partner at Down Range, discussed year-to-date performance of bank stocks, why they think failed institutions were not representative …

Bearish investors are targeting bank stocks and ignoring the facts, according to Janney Montgomery Scott Director of Research Chris Marinac. In the episode, Marinac discussed the fallout from recent bank failures and the recent, sharp selloff in bank stocks. He said bearish investors are using banks as a “weapon of destruction” to try to force the …

The liquidity crunch that emerged at a few institutions in March sent fears through the market and battered bank stocks but the selloff has left some trophy franchises on sale, according to KBW CEO Tom Michaud. In the latest Street Talk podcast, KBW CEO Tom Michaud discussed the liquidity crunch that emerged in March and battered bank stocks and of…

Economists had hopes that the Federal Reserve could achieve a soft landing as it worked to tame inflation but that prospect could be harder in light of the liquidity crunch facing the U.S. banking industry. In the episode, S&P Global Market Intelligence's news team highlights interviews with investors, analysts and economists say that the Fed remai…

Higher rates have put deposits under pressure across the banking industry, but liquidity strains have been far more pronounced at a few banks, resulting in severe hits to their stock prices. Crypto-focused bank Silvergate announced plans to voluntarily wind down its operations after facing a liquidity crunch, but others like SVB Financial raised ca…

As deposit competition intensifies, banks should consider slowing or even stopping growing to mitigate credit risk and threats to their net interest margins, according to South State Bank Director of Capital Markets Chris Nichols. The episode features a discussion on the pitfalls of competing for deposits just with rates and why banks should rethin…

An unforgiving stock market and declining cash reserves at startups should lead to a wave of U.S. fintech industry consolidation in 2023. Some companies will survive, but many others will throw in the towel or sell their operations at a significant discount to their peak valuations, according to Tom Mason, senior research analyst at S&P Global Mark…

Bank M&A activity fell considerably in 2022 but the push to obtain core deposits should encourage a steady stream of deals in 2023 as funding becomes more precious. In the episode, Bill Burgess, co-head of financial services investment banking at Piper Sandler said he is bullish that roughly 200 transactions could surface in 2023, up nearly 20% fro…

A spike in interest rates has created large amounts of unrealized losses sitting in banks' bond portfolios and sparked liquidity concerns in the investment community, according to Brett Rabatin, director of research at Hovde Group. In the episode, Rabatin discussed the merits of investors' concerns and the impact that deeply underwater bonds have o…

The slowdown in bank dealmaking in 2022 could reverse course in 2023 as institutions gain greater clarity over emerging liquidity and credit pressures and the regulatory environment, according to some of the most active investment bankers and attorneys focused on deals in bankland. The group, which featured the heads of investment banking from Keef…

After explosive growth that outperformed the rest of the industry's historic growth in 2021, Northwestern Mutual believes its long-term approach, digital investments to complement its financial advisor salesforce and focus on diversity and inclusion will allow the company to stand out against other life insurers, wealth managers and the biggest ban…

Higher interest rates promise stronger net interest income for the banking industry, but bank stocks are trading at discounted prices because investors are concerned about potential threats to bank liquidity and credit quality, according to KBW CEO Tom Michaud. In the episode, Michaud discussed current bank stock valuations, the impact of higher ra…

The Federal Reserve's aggressive tightening of monetary policy has pushed bank bond portfolios deep into negative territory, altered previously struck bank M&A deals and has given pause to some would-be buyers. In the episode, bankers and advisers from Piper Sandler's depository investment bank team and PNC's Financial Institutions Advisory Group d…

While deal discussions continue and community banks still see acquisitions as an attractive tool for growth, regulatory headwinds have made M&A a little less attractive for growth-mind companies. In the episode, Jonathan Hightower, partner at Fenimore Kay Harrison LLP, discussed the drivers of community bank M&A activity, the impact of rising rates…

Large banks' second-quarter results likely helped downplay recessionary fears but many investors will remain on the sidelines until it is clear that a severe recession is not on the horizon, according to Gerard Cassidy. In the episode, Cassidy, managing director and head of U.S. Bank Equity Strategy at RBC Capital Markets, discussed banks' second-q…

The Fed has committed to taming elevated inflation by tightening monetary at a rapid pace, stoking fears that the central bank will not be able to achieve a "soft landing" for the U.S. economy. In the episode, S&P Global Market Intelligence's news team highlights interviews with investors, analysts and economists who say that a recession is a real …

The current economic headwinds might seem like a "hurricane" on the horizon to some, but advisers and bankers at S&P Global Market Intelligence annual community bankers' conference said institutions could navigate choppy waters. In the latest Street Talk podcast, we share the advice that bankers, advisers and investors offered at the event, includi…

While recessionary fears have grown on the Street, S&P Global Ratings U.S. Chief Economist Beth Ann Bovino does not see a downturn developing this year. In the episode, the economist discussed her outlook for the U.S. economy and inflation, the possibility of a wage spiral and the Federal Reserve's plans to wind down its nearly $9 trillion balance …

While most banks are positioned for higher rates, institutions might be wise to consider the possibility that rates could turn the other way in the future, according to Darling Consulting Group President and CEO Matt Pieniazek. In the episode, Pieniazek discussed balance sheet positioning ahead of the rate hike cycle, the potential for securities p…

After a busy year for dealmaking, Citizens Financial Group sees more opportunities for organic growth going forward, including through its digital bank where it plans to offer more consumer loan products, according to the company's Chairman and CEO Bruce Van Saun. In the episode, Van Saun discussed how elevated inflation and higher rates could impa…

While a number of investors are looking for higher interest rates to drive bank earnings and stocks higher, not all investors are sold on the prospect. Even with the recent selloff, Brad Rinschler, managing partner at Down Range Capital Management, said in the latest Street Talk podcast that he believes valuations of many regional banks remain too …

Many banks have been hesitant to invest excess cash before the Federal Reserve raises short-term interest rates, but they are likely leaving money on the table given the strong move in immediate rates that has already occurred, according to Piper Sandler's Scott Hildenbrand. In the episode, Hildenbrand, chief balance sheet strategist and head of th…

A number of banks during fourth-quarter earnings season, including large players like Wells Fargo and Bank of America, unveiled plans to reduce overdraft and nonsufficient fees in 2022 as competitive pressure mounts from neobanks and regulators seek to increase their oversight of the issue. The group of banks that have cut or reduced their overdraf…

The Federal Reserve's plans to raise interest rates and the return of loan growth will boost bank profitability but the gains might not come as quickly as the Street hopes and that should encourage more bank M&A activity, according to Greg Hertrich, head of U.S. depository strategies at Nomura. In the episode, Hertrich discussed how Fed actions wil…

The Federal Reserve might have to raise short-term rates sooner than expected and that could prompt the central bank to end the tapering of its bond purchases early in 2022, according to S&P Global Ratings Chief U.S. Economist Beth Ann Bovino. In the episode, Bovino discussed the outlook for economic growth, inflation and the labor markets, and how…

TD Bank never turned its focus away from growth during the pandemic and the company continues see to see organic and acquisition opportunities, both in and outside of its traditional U.S. retail footprint, according to CEO Greg Braca. In the episode, Braca discussed the company's outlook for growth, including through potential acquisitions, balanci…

Bank stocks and bank M&A activity have rebounded strongly from the depths of the pandemic and the factors driving the resurgence remain in place, according to KBW CEO Tom Michaud. In the episode, the CEO of the Stifel Financial unit discussed current bank stock valuations, the Street's view of the group, the competitive threat of fintechs, recent b…

The pandemic has put technology front and center for financial institutions as customers shifted transactions toward digital channels. Meanwhile, fintechs continue to attract even greater amounts of capital and have expanded their offerings to include more banking and insurance products, putting them in direct competition with traditional players. …

Some regional banks looking to divest branches have attracted buyers by splitting up the branches and selling them to multiple community banks at once. In the episode, DD&F Consulting President Randy Dennis, who has worked with banks on some of those deals, discussed his outlook for future branch sales, bank liquidity levels and how institutions ar…