iShares U.S. Regional Banks ETF (ARCA: IAT)

Dernières nouvelles pour iShares U.S. Regional Banks ETF (ARCA:IAT)

iShares U.S. Regional Banks ETF

Financial Services

The Fund seeks to track the investment results of the Dow Jones U.S. Select Regional Banks Index; the Underlying Index, which measures the performance of the regional bank sector of the U.S. equity market, as defined by S&P Dow Jones Indices LLC the Index Provider or SPDJI.

Pnc Financial Services Group Inc.

Us Bancorp

Bb&t; Corporation

Fifth Third Bancorp

First Citizens Bcshs - A

M&T Bank Corp

Huntington Bancshares Inc./Oh

Eurazeo

Citizens Financial Group Inc.

Keycorp

iShares US Regional Banks ETF

Famed market analyst Tom Lee, managing partner of Fundstrat, summarized trade ideas on Monday following President-Elect <a href="https://www.benzinga.com/news/24/11/41768178/donald-trump-defeats-kamala-harris-to-win-2024-election">Donald Trump&#8217;s victory</a>. Fellow analyst Ryan Detrick concurred with two of Lee&#8217;s ideas.
Tom Lee&#8217;s Picks: Lee <a href="https://www.youtube.com/watch?v=fIIzr4_3MvU&amp;ab_channel=CNBCTelevision">appeared</a> on CNBC Monday morning, touting cyclical and small-cap stocks.
Lee asserted that energy stocks may not do as well as expected under a second Trump term, but cyclical industrial and financial stocks may perform well.
&#8220;This is for [industrials and financials]&#8230; a great environment, including M&amp;A, cost of money falling and deregulation,&#8221; Lee said.
The analyst noted that markets have begun pricing in future inflation, perhaps due to Trump&#8217;s plan to deport undocumented immigrants or run up fiscal spending. Lee says markets are unsure of Trump&#8217;s plans on trade, but noted that markets may shape policy to be pro-business. 
Lee subsequently touted small-cap companies due to their historical underperformance and cheap valuations compared to the S&amp;P 500, tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>). He also noted that small-cap earnings are faster than those of their larger counterparts. Additionally, roughly 44% of small-caps are cyclical (regional banks and industrial stocks).
Detrick Agrees: Detrick agreed with Lee&#8217;s ideas following his appearance on CNBC.
&#8220;Good to see@fundstrat sticking with the small caps and cyclical themes. We are right there with him,&#8221; Detrick <a href="https://x.com/RyanDetrick/status/1855977336606269674">posted</a> on X on Monday.
Recent Price Action: The financial-focused Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) has performed well in the green since Trump&#8217;s win, up nearly 7%. Regional banks have performed even better—the iShares US Regional Banks ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAT#NYSE">IAT</a>) is up over 11% in that timeframe.
Meanwhile, industrials have also performed well; the Industrial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>) is up over 5%.
Small caps as a whole—reflected by the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>)—are up over 7%.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41883820/trump-trade-sparks-biggest-financial-stock-inflows-in-2-years">Trump Trade Sparks Biggest Financial Stock Inflows In 2 Years</a></li>
</ul>
Image created using photos from Shutterstock.

Analyst Color

Long Ideas

Small Cap Analysis

Politics

Trading Ideas

ETFs

iShares Dow Jones US Regional Banks Index Fund

Why Trump's Win Has 2 Market Experts Betting On Small Caps, Financials

PNC Financial Services Group, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PNC#NYSE">PNC</a>) shares are trading higher after it reported<a target="_blank" href="https://www.benzinga.com/pressreleases/24/10/n41326623/pnc-reports-third-quarter-2024-net-income-of-1-5-billion-3-49-diluted-eps" rel="noreferrer noopener"> third-quarter&nbsp;results</a>.
Revenue rose 4%&nbsp;Y/Y to $5.432 billion, beating the consensus of&nbsp;$5.389 billion. Revenue growth Y/Y led by higher&nbsp;noninterest income.
Net interest income remained flat Y/Y at&nbsp;$3.41 billion, with a net interest margin of 2.64%.
Noninterest income grew&nbsp;11%&nbsp;Y/Y to&nbsp;$2.02 billion, led by higher fee income (+13% Y/Y) thanks to strong capital markets and advisory revenue.
Average loans and average deposits both remained stable Y/Y in the&nbsp;third quarter. EPS of&nbsp;$3.49&nbsp;topped&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">the consensus of&nbsp;$3.32</a>.
The company reported a provision for credit losses of&nbsp;$243 million&nbsp;in the quarter (vs.&nbsp;$129 million&nbsp;a year ago). CET1 capital ratio stood at&nbsp;10.3%&nbsp;vs. 9.8%&nbsp;in the prior year quarter.&nbsp;
Dividend: On October 3, 2024, PNC&#8217;s board of directors declared a quarterly cash dividend on common stock of&nbsp;$1.60, payable on November 5, 2024, to shareholders of&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/10/n41168021/pnc-declares-dividend-of-1-60-on-common-stock" rel="noreferrer noopener">record as of October 16, 2024</a>.
PNC returned&nbsp;$0.8 billion&nbsp;of capital to shareholders, comprising share repurchases over&nbsp;$0.1&nbsp;billion&nbsp;in the quarter.
The company expects the share repurchase activity for the fourth quarter of 2024 is expected to match recent quarterly averages.
Bill Demchak, Chairman and CEO, said, &#8220;Our results for the third quarter demonstrate PNC&#8217;s continued strong momentum across the franchise. NII and NIM both increased, fee revenue grew substantially and expenses remained well controlled, resulting in positive operating leverage.&#8221;
&#8220;Importantly, we increased TBV, grew customers and continued to strengthen our capital levels. We remain well positioned to capitalize on opportunities and achieve record NII in 2025.&#8221;
<a target="_blank" href="https://d1io3yog0oux5.cloudfront.net/_c053e26bac1e3ba8730bf90f9a1b5811/pnc/db/2250/21523/presentation/3Q24+Earnings+Slides_Final.pdf" rel="noreferrer noopener">Guidance</a>: For the&nbsp;fourth quarter, the bank expects average loans and total revenue to be stable and net interest income to be&nbsp;up&nbsp;1% sequentially.
Investors can gain exposure to the stock via&nbsp;IShares U.S. Regional Banks ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAT#NYSE">IAT</a>) and&nbsp;Invesco Exchange-Traded Fund Trust II Invesco S&amp;P Ultra Dividend Revenue ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RDIV#NYSE">RDIV</a>).
Price Action: PNC shares are up 0.78% at $190.00 premarket at the last check Tuesday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41324660/jim-cramer-says-earnings-season-will-fuel-markets-record-run-but-warns-of-this-horr" target="_blank" rel="noreferrer noopener">Jim Cramer Says Earnings Season Will Fuel Market&#8217;s Record Run, But Warns Of This &#8216;Horrendous&#8217; Headwind That Could Apply Brakes To Rally</a></li>
</ul>

Earnings

Equities

Large Cap

News

Guidance

Dividends

Buybacks

RDIV

PNC Financial Surges Past Q3 Expectations With Revenue Boost And Strong Fee Growth

Bank of America has <a href="https://www.benzinga.com/markets/cryptocurrency/24/09/41003610/veteran-investor-mark-moss-predicts-bitcoin-to-surge-to-300k-if-donald-trump-wins-the-elec">spotlighted three sectors</a> that could benefit from the Federal Reserve&#8217;s rare dual approach of rate cuts and rising corporate profits.
What Happened: Savita Subramanian, BofA&#8217;s head of U.S. equity and strategy, referred to this situation as a &#8220;rare double whammy of stimulus&#8221; during her <a href="https://www.youtube.com/watch?v=n-vbFcslt8Q">appearance</a> on CNBC on Monday. 
She recommended investors focus on value stocks in real estate, financials, and energy sectors.
Subramanian noted that value stocks, which trade below their fundamental value, tend to outperform when profits rise and rates fall. This scenario reduces the need for hedging and encourages investment in higher-upside names.
&#8220;I think about where these assets sitting in retiree accounts and money market funds are going; I think they&#8217;re going into safe, stable income. That&#8217;s more value than growth,&#8221; she said.
Real estate benefits from significant investments in data centers, crucial for artificial intelligence infrastructure, while financials and energy sectors have improved their quality and capital returns since the last decade. 
Subramanian emphasized the appeal of high dividends in these sectors as short-term yields decline, making dividend-yielding stocks attractive for income-seeking investors.
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/09/41081939/trump-wants-us-to-be-bitcoin-mining-capital-of-the-world-core-scientifics-move-to-buy-chip?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Trump Wants US To Be Bitcoin Mining Capital Of The World</a>
The following ETFs are notable performers within their respective sectors. In the real estate category, iShares Core U.S. REIT ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USRT#NYSE">USRT</a>), Schwab U.S. REIT ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHH#NYSE">SCHH</a>), and SPDR DJ Wilshire REIT ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWR#NYSE">RWR</a>) stand out as top options.
In the financial sector, SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>), iShares U.S. Regional Banks ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAT#NYSE">IAT</a>), and SPDR S&amp;P Bank ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBE#NYSE">KBE</a>) have emerged as leading performers. 
For those looking into energy investments, Direxion Energy Bull 2X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ERX#NYSE">ERX</a>), Fidelity MSCI Energy Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FENY#NYSE">FENY</a>), and SPDR Select Sector Fund &#8211; Energy Select Sector (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) represent some of the top options.
Why It Matters: The identification of these value sectors comes at a time of significant economic and political uncertainty. Investors are currently grappling with U.S. economic uncertainty, shifts in Federal Reserve policy, and the upcoming presidential election.
The CBOE Volatility Index (VIX), a key gauge for measuring protection against <a href="https://www.benzinga.com/markets/24/09/40796352/trump-vs-harris-u-s-stock-market-faces-rising-risks-amid-economic-uncertainty-and-2024-election">stock market fluctuations</a>, has climbed to around 20, a significant rise from its 2024 average of 14.8. This surge in volatility is a typical pattern during election years, as investors weigh the market implications of policy proposals from candidates.
Steve Eisman, known for his role in <a href="https://www.benzinga.com/markets/equities/24/09/40951546/big-short-fame-investor-drops-previous-prediction-of-trump-victory-the-market-is-going-straight-">predicting the 2008 financial crisis</a>, recently withdrew his prediction of a Trump victory, adding uncertainty to market forecasts. 
Read Next: 
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<li><a href="https://www.benzinga.com/markets/equities/24/09/41097541/amazon-apple-tesla-brace-for-supply-chain-disruptions-as-potential-east-coast-dockworkers-strike?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Amazon, Apple, Tesla Brace For Supply Chain Disruptions As Potential East Coast Dockworkers Strike Nears</a></li>
</ul>
Image Via Shutterstock 
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Federal Reserve

Markets

FENY

SCHH

USRT

BofA Highlights 3 Value Sectors Amid Fed's 'Rare Double Whammy' Of Stimulus

Launched on 06/19/2006, the SPDR S&amp;P Regional Banking ETF (ARCA:KRE) is a smart beta exchange traded fund offering broad exposure to the Financials ETFs category of the market.
<h2>What Are Smart Beta ETFs?</h2>
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
There are some investors, though, who think it&#39;s possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
<h2>Fund Sponsor &amp; Index</h2>
The fund is sponsored by State Street Global Advisors. It has amassed assets over $3.25 billion, making it one of the largest ETFs in the Financials ETFs. Before fees and expenses, this particular fund seeks to match the performance of the S&amp;P Regional Banks Select Industry Index.
The S&amp;P Regional Banks Select Industry Index represents the regional banks segment of the S&amp;P Total Market Index.
<h2>Cost &amp; Other Expenses</h2>
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.35% for KRE, making it one of the least expensive products in the space.
It&#39;s 12-month trailing dividend yield comes in at 2.79%.
<h2>Sector Exposure and Top Holdings</h2>
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund&#39;s holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
For KRE, it has heaviest allocation in the Financials sector --about 100% of the portfolio.
When you look at individual holdings, Western Alliance Bancorp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wal#NYSE">WAL</a>) accounts for about 2.46% of the fund&#39;s total assets, followed by Columbia Banking System Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/colb#NASDAQ">COLB</a>) and Valley National Bancorp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/vly#NASDAQ">VLY</a>).
Its top 10 holdings account for approximately 22.73% of KRE&#39;s total assets under management.
<h2>Performance and Risk</h2>
So far this year, KRE has added roughly 9.31%, and was up about 32.96% in the last one year (as of 09/17/2024). During this past 52-week period, the fund has traded between $38.57 and $59.23.
The fund has a beta of 1.07 and standard deviation of 30.92% for the trailing three-year period, which makes KRE a high risk choice in this particular space. With about 143 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
SPDR S&amp;P Regional Banking ETF is not a suitable option for investors seeking to outperform the Financials ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
Invesco KBW Regional Banking ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/kbwr#NASDAQ">KBWR</a>) tracks KBW Nasdaq Regional Banking Index and the iShares U.S. Regional Banks ETF (ARCA:IAT) tracks Dow Jones U.S. Select Regional Banks Index. Invesco KBW Regional Banking ETF has $52.29 million in assets, iShares U.S. Regional Banks ETF has $640.56 million. KBWR has an expense ratio of 0.35% and IAT charges 0.40%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Financials ETFs.
<a href="https://www.zacks.com/stock/news/2336916/is-spdr-s-p-regional-banking-etf-kre-a-strong-etf-right-now?cid=CS-BENZ-FT-smart_beta_etf-2336916">To read this article on Zacks.com click here.</a>

Mid Cap

Sector ETFs

COLB

KBWR

Is SPDR S&P Regional Banking ETF a Strong ETF Right Now?

U.S. Bancorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USB#NYSE">USB</a>) shares are trading higher <a target="_blank" href="https://www.benzinga.com/premarket" rel="noreferrer noopener">in the premarket session on Thursday.</a>
The Board of Directors at U.S. Bancorp has approved a new share repurchase program, authorizing up to $5 billion to be used for buying back the company&#8217;s common <a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/b40828014/u-s-bancorp-announces-5-billion-common-stock-repurchase-program-increase-to-quarterly-common-stock" rel="noreferrer noopener">stock starting September 13, 2024. </a>The actual repurchase activities are expected to commence in early 2025.
Additionally, U.S. Bancorp has announced a quarterly dividend of 50 cents per common share. This dividend will be paid on October 15 to shareholders on record as of September 30.
This represents a 2% increase from the previous quarter. With this dividend rate, the annual payout totals $2.00 per common share.
Also Read:<a target="_blank" href="https://www.benzinga.com/news/earnings/24/09/40828733/nasdaq-s-p-500-set-for-modest-gains-as-investors-eye-august-inflation-data-and-ecb-rate-decision" rel="noreferrer noopener"> Nasdaq, S&amp;P 500 Set For Modest Gains As Investors Eye August Inflation Data And ECB Rate Decision</a>
U.S. Bancorp plans to implement the share repurchase program at its discretion, keeping a close watch on economic conditions while managing its capital growth and adhering to regulatory standards.
The repurchases may occur either through open market transactions or through private negotiations. The company will adjust its capital distributions based on prevailing conditions.
Any further capital distributions, including dividends, will require approval from the Board of Directors.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, USB stock has gained over 20% in the past year. Investors can gain exposure to the stock via&nbsp;iShares U.S. Regional Banks ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAT#NYSE">IAT</a>) and First Trust Nasdaq Bank ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXO#NASDAQ">FTXO</a>).
Price Action: USB shares are trading higher by 1.68% to $45.50 premarket at last check Thursday.
Photo by JHVEPhoto via Shutterstock
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/07/39813946/us-bancorp-q2-earnings-net-interest-income-dips-but-fee-income-grows" target="_blank" rel="noreferrer noopener">US Bancorp Q2 Earnings: Net Interest Income Dips, But Fee Income Grows</a></li>
</ul>

Movers

General

FTXO

U.S. Bancorp Enhances Shareholder Returns With New Buyback And Dividend Hike: Details

U.S. banks showed a strong comeback over the past week on bullish fundamentals in the space amid market rotation into undervalued segments. The probability of Donald Trump returning to the White House has risen significantly along with a Fed rate cut in September. Both are favorable for the banking sector. The robust second-quarter results of the banks also added to the strength.
Given the optimism, bank ETFs soared to a new one-year high. First Trust NASDAQ ABA Community Bank Index Fund (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qaba#NASDAQ">QABA</a>) was the biggest winner, jumping 16.2% in a week. This was followed by gains of 15% for Invesco KBW Regional Banking ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/kbwr#NASDAQ">KBWR</a>), 14.8% for SPDR S&amp;P Regional Banking ETF (ARCA:KRE), 13.3% for SPDR S&amp;P Bank ETF (ARCA:KBE) and 11% for iShares U.S. Regional Banks ETF (ARCA:IAT).
<h3>Trump Trade Resurge</h3>
The banks are well-positioned to benefit from Trump&#39;s deregulation and lower corporate tax policies. One of the most notable potential benefits for banks would come from Trump&#39;s focus on deregulation. During his first term, Trump&#39;s administration rolled back several regulations that were imposed after the 2008 financial crisis. This deregulation reduced compliance costs and increased profit margins for banks. A second Trump term could see a continuation or even an expansion of these deregulatory efforts, providing a more favorable operating environment for financial institutions.
<h3>Fed Rate Cut Bets</h3>
The latest inflation data and Fed Chairman Jerome Powell&#39;s recent hints have bolstered bets that the central bank will act by September. Powell said the Fed wouldn&#39;t wait for inflation to get to its 2% target before it began cutting because of the lag effects of tightening. Traders are now 100% certain that the Federal Reserve will cut interest rates by September, per CME Group.
A rate cut after two years of tightening would be a big relief for midsize banks, which are struggling with the impact of high rates on their profits and their borrowers. Lower rates will brighten the lenders&#39; earnings outlook in the coming quarters.
<h3>Solid Earnings</h3>
Big banks like Bank of America&nbsp;and Morgan Stanley&nbsp;saw a spike in their share prices on robust quarterly results. U.S. Bancorp and Citizens Financial Group also rose on positive quarterly results.
We have profiled the abovementioned ETFs below: 
First Trust NASDAQ ABA Community Bank Index Fund&nbsp;&ndash; 52-Week High: $53.87
First Trust NASDAQ ABA Community Bank Index Fund offers exposure to the largest banks and thrifts or their holding companies that are designated as banks by the Industry Classification Benchmark. It tracks the NASDAQ OMX ABA Community Bank Index, holding 125 stocks in its basket.
First Trust NASDAQ ABA Community Bank Index Fund has accumulated $62.9 million in its asset base and trades in a volume of around 14,000 shares a day on average. It charges 60 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a High risk outlook.
Invesco KBW Regional Banking ETF &ndash; 52-Week High: $57.40
Invesco KBW Regional Banking ETF offers exposure to publicly traded U.S. regional banking and thrift companies by tracking the KBW Nasdaq Regional Banking Index. It holds 51 stocks in its basket, with none accounting for more than 4% of the assets.
Invesco KBW Regional Banking ETF is a relatively less popular and less liquid option in the space, with AUM of $53.8 million and an average daily volume of 4,000 shares. It charges 35 bps in fees per year from investors and has a Zacks ETF Rank #4 (Sell) with a High risk outlook.
SPDR S&amp;P Regional Banking ETF &ndash; 52-Week High: $57.10
SPDR S&amp;P Regional Banking ETF provides exposure to the regional banks segment by tracking the S&amp;P Regional Banks Select Industry Index. It holds 141 stocks in its basket, with each accounting for no more than 2.3% of the assets.
SPDR S&amp;P Regional Banking ETF has AUM of $2.8 billion and charges 35 bps in annual fees. It trades in an average daily volume of 12 million shares and has a Zacks ETF Rank #4 (Sell) with a High risk outlook.
SPDR S&amp;P Bank ETF &ndash; 52-Week High: $53.19
SPDR S&amp;P Bank ETF offers equal-weight exposure to 92 banking stocks by tracking the S&amp;P Banks Select Industry Index. Regional banks dominate the portfolio with a 73.9% share, while diversified banks, commercial &amp; residential mortgage finance, diversified financial services and asset management &amp; custody banks take the remainder.
SPDR S&amp;P Bank ETF has amassed $1.6 billion in its asset base while trading in a heavy volume of 1.4 million shares a day, on average. The product charges 35 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a High risk outlook.
iShares U.S. Regional Banks ETF &ndash; 52-Week High: $47.08
iShares U.S. Regional Banks ETF offers exposure to 35 small and mid-cap regional bank stocks by tracking the Dow Jones U.S. Select Regional Banks Index. It is largely concentrated on the top three firms with a double-digit allocation each.
iShares U.S. Regional Banks ETF has amassed $604.2 million in its asset base while seeing a good volume of 153,000 shares a day. The product charges 40 bps in annual fees and has a Zacks ETF Rank #3 with a High risk outlook.
<a href="https://www.zacks.com/stock/news/2304444/bank-etfs-soar-on-trump-trade-september-rate-cut-bets?cid=CS-BENZ-FT-etf_news_and_commentary-2304444">To read this article on Zacks.com click here.</a>

Analyst Ratings

First Trust NASDAQ ABAmmunity Bank Index Fund

QABA

Bank ETFs Soar on Trump Trade, September Rate Cut Bets

U.S. Bancorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USB#NYSE">USB</a>) shares are trading higher after&nbsp;it reported&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/07/b39811647/u-s-bancorp-reports-second-quarter-2024-results" rel="noreferrer noopener">second-quarter&nbsp;FY24 results</a>.
Revenue stood at&nbsp;$6.867 billion&nbsp;(-4.3%&nbsp;Y/Y), beating the consensus of $6.795 billion.
Net interest income (taxable-equivalent basis) fell&nbsp;8.9%&nbsp;Y/Y to&nbsp;$4.05 billion&nbsp;owing to the impact of higher interest rates on deposit mix and pricing.
The net interest margin decreased to 2.67% in the second quarter of 2024 from 2.90% in the year-ago quarter.
Meanwhile, non-interest income rose&nbsp;3.3%&nbsp;Y/Y to&nbsp;$2.8 billion, aided by higher fee revenue across most categories.
Adjusted earnings per share totaled&nbsp;$0.98, beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">consensus of&nbsp;$0.94</a>.
The provision for credit losses for the&nbsp;second quarter&nbsp;of 2024 was&nbsp;$568 million, down&nbsp;30.8%&nbsp;Y/Y, due to stabilization in the economic and credit environment.
The company recorded an average total loan increase of 1.0%&nbsp;Y/Y and an average total deposit growth of&nbsp;2.2%&nbsp;on a linked quarter basis.
The company reported a CET1 capital ratio of&nbsp;10.3%&nbsp;as of June end, compared with&nbsp;10.0%&nbsp;at March end.
Andy Cecere, Chairman, President and CEO, said, &#8220;This quarter we generated $6.9 billion in net revenue driven by improved linked quarter net interest income, supported by healthy deposit growth, and continued momentum in leveraging our diversified fee income platform to deepen relationships.&#8221;
&#8220;We continued to invest for the future while managing our operating expenses prudently, with both linked quarter and year-over-year declines in noninterest expense.&#8221;
<a target="_blank" href="https://s203.q4cdn.com/711684571/files/doc_financials/2024/q2/2Q24-Earnings-Call-Presentation.pdf" rel="noreferrer noopener">Outlook</a>: USB reiterated FY24 net interest income (taxable-equivalent basis)&nbsp;guidance&nbsp;at&nbsp;<a target="_blank" href="https://www.benzinga.com//node/38290978" rel="noreferrer noopener">$16.1 billion-$16.4 billion</a>.
For the&nbsp;third quarter, USB expects net interest income (taxable-equivalent basis) to be <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">relatively stable sequentially</a>.
Investors can gain exposure to the stock via&nbsp;IShares U.S. Regional Banks ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAT#NYSE">IAT</a>) and&nbsp;First Trust Nasdaq Bank ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXO#NASDAQ">FTXO</a>).
Price Action:&nbsp;USB shares are up 1.41% at $43.90 premarket at the last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by JHVEPhoto via Shutterstock

US Bancorp Q2 Earnings: Net Interest Income Dips, But Fee Income Grows

Goldman Sachs analyst Richard Ramsden anticipates a neutral investor response to PNC Financial Services Group, Inc.&#8216;s&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PNC#NYSE">PNC</a>) stronger <a target="_blank" href="https://www.benzinga.com//node/39791655" rel="noreferrer noopener">results and updated FY24 guidance</a>.
Today, the bank reported a revenue increase of&nbsp;2%&nbsp;Y/Y to&nbsp;$5.411 billion, slightly missing the consensus of&nbsp;$5.412 billion, while adjusted EPS of&nbsp;$3.30&nbsp;topped&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">the consensus of&nbsp;$2.98</a>.
For FY24, PNC&nbsp;expects net interest income (NII) to decline&nbsp;4%, revenue to be down&nbsp;1%-2% (vs. consensus of roughly unchanged Y/Y), and&nbsp;average loan down less than&nbsp;1% (vs. <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">Street estimate of flat Y/Y)</a>.
The analyst says that the third quarter 2024 guidance for NII, fee income, and expenses also suggests a slightly lower pre-provision net revenue (PPNR) compared to consensus.
Overall, the updated FY2024 guidance (at the midpoint) suggests a 2% lower PPNR than the Street, writes the analyst.
Given the revised rate expectations (potentially 2-3 rate cuts this year), the analyst anticipates management&#8217;s comments on the assumptions driving the guidance, NII trajectory in H2 2024 and 2025, expense trends, potential for operating leverage, credit outlook, and the likelihood of ongoing reserve releases in the near term.
In particular, the analyst anticipate investor inquiries regarding the trajectory towards losses in both consumer and corporate segments, and whether there has been any recent deterioration in credit trends.
Notably, net charge-offs (NCOs) for commercial real estate (CRE) rose to 1.28%, an increase of approximately 65 basis points Q/Q, prompting management to raise the office CRE reserve ratio from 9.7% to 10.3%.
Ramsden rated PNC as Neutral <a target="_blank" href="https://www.benzinga.com/quote/PNC/analyst-ratings" rel="noreferrer noopener">with a price target of $165</a>.
Investors can gain exposure to the stock via&nbsp;IShares U.S. Regional Banks ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAT#NYSE">IAT</a>) and&nbsp;Invesco Exchange-Traded Fund Trust II Invesco S&amp;P Ultra Dividend Revenue ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RDIV#NYSE">RDIV</a>).
Price Action: PNC shares are up 4.66% at $176.89 at the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Wikimedia Commons

Price Target

Reiteration

Goldman Sachs Maintains Neutral on PNC Despite Strong Results, Cites Modest FY24 Outlook

PNC Financial Services Group, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PNC#NYSE">PNC</a>) shares are trading higher after it reported&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/07/n39788551/pnc-reports-second-quarter-2024-net-income-of-1-5-billion-3-39-diluted-eps" rel="noreferrer noopener">second-quarter FY24 results</a>.
The bank reported a revenue increase of 2% Y/Y to $5.411 billion, slightly missing the consensus of $5.412 billion. Revenue increased Y/Y led by higher noninterest income.
Net interest income fell 6% Y/Y to $3.30 billion, with a net interest margin declining to 2.60% from 2.79% prior year quarter due to increased funding costs and lower loan balances.
Noninterest income grew 18% Y/Y to $2.11 billion, led by higher fee income on growth across all categories.
Average loans fell 1% Y/Y, and average deposits decreased 2% Y/Y in the second quarter. Adjusted EPS of $3.30 topped <a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">the consensus of $2.98</a>.
The company reported a provision for credit losses of $235 million in the quarter (vs. $146 million a year ago), reflecting portfolio activity. CET1 capital ratio stood at 10.2% vs. 9.5% in the prior year quarter.&nbsp;
During the second quarter of 2024, PNC engaged in the Visa exchange program, enabling it to monetize 50% of its Visa Class B-1 shares and converting the remainder into 1.8 million Visa Class B-2 shares, resulting in a gain of $754 million.
Dividend: On July 2, PNC&#8217;s board of directors increased a quarterly cash dividend per share to $1.60 (from $1.55), payable on August 5, 2024, to shareholders of <a target="_blank" href="https://www.benzinga.com//node/39599039" rel="noreferrer noopener">record as of July 15, 2024</a>.
PNC returned $0.7 billion of capital to shareholders, comprising share repurchases over $0.1 billion in the quarter.
Bill Demchak, Chairman and CEO, said, &#8220;PNC delivered strong results in the second quarter; generating positive operating leverage through revenue growth and well controlled expenses while adding customers, and strengthening our capital levels. Importantly, net interest income and net interest margin increased, marking the beginning of our growth trajectory towards expected record NII in 2025.&#8221;
&#8220;In June, the Federal Reserve announced the results of the annual stress test and PNC&#8217;s start-to-trough CET1 ratio depletion was 1.6%, the best in our peer group.&#8221;
<a target="_blank" href="https://d1io3yog0oux5.cloudfront.net/_180c3827ad9d1cf9b148802a56d64d8a/pnc/db/2250/21513/presentation/2Q24+Earnings+Slides_Final.pdf" rel="noreferrer noopener">Guidance</a>: For FY24, PNC&nbsp;expects revenue to be down 1%-2%, with net interest income declining 4% and <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">average loan down less than 1%</a>.
For the third quarter, the bank expects average loans to be stable and net interest income to be&nbsp;up 1%-2%.
Investors can gain exposure to the stock via&nbsp;IShares U.S. Regional Banks ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAT#NYSE">IAT</a>) and&nbsp;Invesco Exchange-Traded Fund Trust II Invesco S&amp;P Ultra Dividend Revenue ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RDIV#NYSE">RDIV</a>).
Price Action: PNC shares are up 0.22% at $169.40 premarket at the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Wikimedia Commons
Read Next:
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<li><a href="https://www.benzinga.com/government/24/06/39506407/6-biggest-us-banks-ramp-up-buybacks-undeterred-by-stress-tests" target="_blank" rel="noreferrer noopener">6 Biggest US Banks Ramp Up Buybacks, Undeterred By Stress Tests</a></li>
</ul>

PNC Financial Q2 Earnings: EPS Beat, Net Interest Income Dip, Sees 4% NII Decline In FY24

Shares of First Foundation Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FFWM#NYSE">FFWM</a>), a Texas-based <a href="https://www.benzinga.com/markets/equities/24/05/39099474/regional-banks-yet-to-recover-from-svb-collapse-time-to-invest-in-the-top-banking-etf">regional bank facing</a> commercial real-estate risks, dropped significantly on Wednesday after it received some badly needed help from a group of investors led by Fortress Investment Group.
The stock closed at $6.58 a share on Tuesday but fell 24.7% to $4.95 by mid-day on Wednesday.
Fortress,&nbsp;Canyon Partners,&nbsp;Strategic Value Bank Partners,&nbsp;North Reef Capital&nbsp;and other investors agreed to buy $228 million in common and preferred shares at $4.10 each from&nbsp;the Dallas bank, which has about $14 billion in assets, according to the firms, the Wall Street Journal <a href="https://www.wsj.com/finance/banking/investors-give-lifeline-to-texas-bank-confronting-real-estate-risks-33a75b51">reported</a>. 
Fortress will invest $115 million in First Foundation as part of the deal, while Canyon Partners will invest $46 million. Strategic Value and North Reef Capital plan to invest $22 million each. Fortress will own 24.9% of the bank after the deal closes, while other investors will own as much as 10%.
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/36917031/exclusive-regional-banks-a-buying-opportunity-amid-ridiculously-cheap-valuations-ve">EXCLUSIVE: Regional Banks A Buying Opportunity Amid &#8216;Ridiculously Cheap Valuations,&#8217; Veteran Value Investor Says</a>
The infusion is intended to give First Foundation some time to sell off certain loans, according to people close to the matter.&nbsp;
The commercial real-estate market has suffered as a result of higher interest rates and the rise of remote work leading to widespread declines in property values. That has increasingly threatened to leave banks with big losses, especially smaller institutions that hold higher concentrations of loans in that sector.
Higher rates have also caused the amount of interest that banks must pay up to depositors to rise, causing the value of fixed-rate securities they hold to fall. 
That pressure has pushed some regional banks to find ways to raise cash, and more banks are expected to execute similar deals to boost their finances, industry executives say, according to the Journal.
Federal Reserve Chair&nbsp;Jerome Powell&nbsp;has said there will likely be more failures related to commercial real estate but that there is no risk to the broader financial system, the Journal reported.
<h1 class="wp-block-heading">Brighter Outlook</h1>
D.A. Davidson &amp; Co. raised its outlook on First Foundation following the announced capital raise, upgrading the stock from Neutral to Buy and raising the price target from $6.57 to $9.
&#8220;While near term profitability remains under pressure, we view the raise as a clearing event, allowing the company the capacity to sell loans, reducing concentration levels and earnings pressure, and build its [allowance for credit losses], while maintaining solid capital levels,&#8221; analyst Gary Tenner said in a note on Wednesday. &#8220;Announced $228M equity investment provides balance sheet flexibility and capital boost.&#8221;
<h1 class="wp-block-heading">ETF Price Action</h1>
Retail bank exchange-traded funds also fell by Wednesday&#8217;s mid-day trading.
SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) slipped 1.29%, Direxion Daily Regional Banks Bull 3X Shares ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DPST#NYSE">DPST</a>) fell 3.89% and iShares U.S. Regional Banks ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAT#NYSE">IAT</a>) declined 0.95%.
Read Now: 
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<li><a href="https://www.benzinga.com/23/09/34330117/regional-banks-navigating-a-goldilocks-scenario-amid-market-geopolitical-challenges">Regional Banks: Navigating A Goldilocks Scenario Amid Market &amp; Geopolitical Challenges</a></li>
</ul>

Photo: Shutterstock

Financing

Real Estate

DPST

FFWM

First Foundation Stock Plunges After $228M Fundraise: Regional Bank Has Heavy Commercial Real Estate Exposure

As April comes to a close, it&#8217;s time to compile the rankings for the top-performing sector and industry exchange-traded <a href="https://www.benzinga.com/etfs">funds of the month.</a>
Taking a broader look at the stock market, the S&amp;P 500 Index, represented by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), finished April on a downturn, declining by approximately 3%. This marks the end of a five-month streak of gains.
Similarly, the tech-heavy Nasdaq 100, tracked by the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), experienced a 3.5% decline.
Among large-cap indices, blue-chip stocks showed slight underperformance, with the SPDR Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) slipping by 4.5%.
Small-cap stocks, represented by the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>), plummeted by over 6%, marking their worst performance since October 2023.
Overall, it has been a challenging month for the stock market, primarily due to inflation surprises surpassing expectations. This has led to a recalibration of market expectations regarding potential Federal Reserve rate cuts.
Additionally, complex global geopolitical tensions have emerged, notably between Israel and Iran, alongside the ongoing issue in the Gaza Strip.
May is anticipated to start with a crucial event as investors await the Federal Reserve Open Market Committee <a href="https://www.benzinga.com/general/macro-notification/24/04/38526201/is-hawkish-shift-on-inflation-imminent-wall-street-analysts-traders-brace-for-fed-impa">(FOMC) meeting on Wednesday. </a>
While no interest rate changes are expected, all eyes will be on Fed Chair Jerome Powell&#8216;s remarks to assess the Fed&#8217;s stance in response to recent inflation surprises.
Read also: <a href="https://www.benzinga.com/general/macro-notification/24/04/38491988/federal-reserve-meeting-preview-high-interest-rates-need-more-time-to-work-bank-of-ame">Federal Reserve Meeting Preview: High Interest Rates &#8216;Need More Time To Work,&#8217; Bank of America Says</a>
<h2 class="wp-block-heading">Performance Of Sector ETFs In April 2024</h2>
At the sector level, only the utilities sector managed to avoid losses for the month, rising by 2.1%.
The largest stock contributors to the utilities&#8217; performance in April are NextEra Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEE#NYSE">NEE</a>), The Southern Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SO#NYSE">SO</a>), Dominion Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/D#NYSE">D</a>) and NRG Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NRG#NYSE">NRG</a>) which showed monthly gains between 4% and 8%. 
Energy stocks remained broadly stable, while the other nine S&amp;P 500&#8217;s sectors showcased losses.
Real estate experienced the worst performance, down by over 7%, dragged down by its high sensitivity to interest rates, as Treasury yields increase across the board during the month. 
Following real estate, the technology and healthcare sectors also showed poor performance in April.
<h4 class="wp-block-heading">April&#8217;s Best And Worst Sector ETFs: Utilities Lead, Real Estate Lags</h4>
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Sector</th>
<th>April 2024 performance</th>
</tr>
</thead>
<tbody>
<tr>
<td>Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>)</td>
<td>2.06%</td>
</tr>
<tr>
<td>Energy&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>)</td>
<td>0.01%</td>
</tr>
<tr>
<td>Consumer Staples&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>)</td>
<td>-1.11%</td>
</tr>
<tr>
<td>Industrials&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>)</td>
<td>-3.23%</td>
</tr>
<tr>
<td>Consumer Discretionary&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>)</td>
<td>-3.68%</td>
</tr>
<tr>
<td>Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>)</td>
<td>-3.85%</td>
</tr>
<tr>
<td>Materials&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>)</td>
<td>-4.13%</td>
</tr>
<tr>
<td>Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>)</td>
<td>-4.24%</td>
</tr>
<tr>
<td>Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>)</td>
<td>-4.78%</td>
</tr>
<tr>
<td>Health Care&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>)</td>
<td>-4.85%</td>
</tr>
<tr>
<td>Real Estate&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>)</td>
<td>-7.83%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data as of Apr. 30, 2024 2:50 p.m. EDT</figcaption></figure>
<h2 class="wp-block-heading">Performance Of Industry ETFs In April 2024</h2>
Based on the industry ETF list provided by BlackRock Inc.&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) iShares, only five out of the 25 industries managed to report gains in April. Among them, miners did well across the board, with silver, copper, and gold mining stocks reporting robust gains. 
Standout contributors to the mining industry&#8217;s outperformance in April were Pan American Silver Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PAAS#NYSE">PAAS</a>), up over 20%, Newmont Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>), up 14%, Anglo American plc (OTCPK: AAUKF), up over 40%
Energy producers also managed to end the month in the green.
On the bottom side of the industry rankings, homebuilders, transportation, biotech stocks, digital infrastructure and real estate all report losses between 7% and 9.6% in April.
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>ETF Name</th>
<th>Performance</th>
</tr>
</thead>
<tbody>
<tr>
<td>iShares MSCI Global Silver and Metals Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLVP#NYSE">SLVP</a>)</td>
<td>12.11%</td>
</tr>
<tr>
<td>iShares Copper and Metals Mining ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COPX#NYSE">COPX</a>)</td>
<td>9.50%</td>
</tr>
<tr>
<td>iShares MSCI Global Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RING#NYSE">RING</a>)</td>
<td>5.93%</td>
</tr>
<tr>
<td>iShares MSCI Global Metals &amp; Mining Producers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PICK#NYSE">PICK</a>)</td>
<td>2.81%</td>
</tr>
<tr>
<td>iShares MSCI Global Energy Producers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FILL#NYSE">FILL</a>)</td>
<td>2.46%</td>
</tr>
<tr>
<td>iShares U.S. Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITA#NYSE">ITA</a>)</td>
<td>-1.16%</td>
</tr>
<tr>
<td>iShares U.S. Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEO#NYSE">IEO</a>)</td>
<td>-1.37%</td>
</tr>
<tr>
<td>iShares Residential and Multisector Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REZ#NYSE">REZ</a>)</td>
<td>-1.66%</td>
</tr>
<tr>
<td>iShares Lithium Miners and Producers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ILIT#NYSE">ILIT</a>)</td>
<td>-3.30%</td>
</tr>
<tr>
<td>iShares U.S. Broker-Dealers &amp; Securities Exchange ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAI#NYSE">IAI</a>)</td>
<td>-3.74%</td>
</tr>
<tr>
<td>iShares U.S. Financial Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYG#NYSE">IYG</a>)</td>
<td>-3.88%</td>
</tr>
<tr>
<td>iShares Expanded Tech Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGM#NYSE">IGM</a>)</td>
<td>-4.37%</td>
</tr>
<tr>
<td>iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>)</td>
<td>-4.40%</td>
</tr>
<tr>
<td>iShares U.S. Healthcare Providers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHF#NYSE">IHF</a>)</td>
<td>-4.79%</td>
</tr>
<tr>
<td>iShares U.S. Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>)</td>
<td>-4.85%</td>
</tr>
<tr>
<td>iShares U.S. Regional Banks ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAT#NYSE">IAT</a>)</td>
<td>-5.11%</td>
</tr>
<tr>
<td>iShares U.S. Pharmaceuticals ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHE#NYSE">IHE</a>)</td>
<td>-5.38%</td>
</tr>
<tr>
<td>iShares U.S. Oil Equipment &amp; Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEZ#NYSE">IEZ</a>)</td>
<td>-5.45%</td>
</tr>
<tr>
<td>iShares Mortgage Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REM#NYSE">REM</a>)</td>
<td>-5.57%</td>
</tr>
<tr>
<td>iShares U.S. Medical Devices ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHI#NYSE">IHI</a>)</td>
<td>-5.75%</td>
</tr>
<tr>
<td>iShares Global Timber &amp; Forestry ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WOOD#NYSE">WOOD</a>)</td>
<td>-6.20%</td>
</tr>
<tr>
<td>iShares Expanded Tech-Software Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGV#NYSE">IGV</a>)</td>
<td>-6.76%</td>
</tr>
<tr>
<td>iShares U.S. Digital Infrastructure and Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IDGT#NYSE">IDGT</a>)</td>
<td>-7.12%</td>
</tr>
<tr>
<td>iShares Biotechnology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBB#NYSE">IBB</a>)</td>
<td>-7.23%</td>
</tr>
<tr>
<td>iShares U.S. Transportation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYT#NYSE">IYT</a>)</td>
<td>-8.34%</td>
</tr>
<tr>
<td>iShares U.S. Home Construction ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITB#NYSE">ITB</a>)</td>
<td>-9.60%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data as of Apr. 30, 2024 3:15 p.m. EDT</figcaption></figure>
Now read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38497224/ai-data-centers-drive-electricity-demand-goldman-sachs-picks-16-stocks-to-play-the-">AI Data Centers Drive Electricity Demand: Goldman Sachs Picks 16 Stocks To Play The Trend</a>
Image generated using artificial intelligence via Midjourney.

Biotech

Market Summary

REIT

Broad U.S. Equity ETFs

Specialty ETFs

Health Care

Commodities

Small Cap

Econ #s

Tech

AAUKF

COPX

SPDR Dow Jones Industrial Average ETF Trust

FILL

iShares Dow Jones US Broker Dealers Index Fund

iShares Dow Jones US Insurance Index Fund

iShares U.S. Digital Infrastructure and Real Estate ETF

IDGT

iShares Dow Jones US Oil & Gas Exploration & Production Index Fund

iShares Dow Jones US Oil Equipment & Services Index Fund

iShares Dow Jones US Pharmaceuticals Index Fund

iShares Dow Jones US Health Care Provides Index Fund

iShares Dow Jones US Medical Devices Index Fund

ILIT

iShares Dow Jones US Aerospace & Defense Index Fund

iShares Dow Jones US Homenstruction Index Fund

iShares Trust Dow Jones US Financial Services Index Fund

iShares Dow Jones Transportation Average Index Fund

PAAS

PICK

iShares FTSE NAREIT Mortgage PLUS Capped Index Fund

iShares FTSE NAREIT Residential PLUS Capped Index Fund

RING

SLVP

iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

iShares S&P Global Timber & Forestry Index Fund

WOOD

XLRE

Select Sector SPDR-Consumer Discretionary

April Showers On Wall Street:  Miners, Utilities Emerge As Bright Spots In Gloomy Market

U.S. Bancorp&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USB#NYSE">USB</a>) shares are trading lower after&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/b38287687/u-s-bancorp-reports-first-quarter-2024-results" rel="noreferrer noopener">it reported first-quarter FY24 results</a>.
Revenue stood at $6.7 billion (-6.4% Y/Y), which aligns with the consensus. Net interest income (taxable-equivalent basis) fell 14.0% Y/Y to $4.0 billion due to the impact of higher interest rates on deposit mix and pricing.
Meanwhile, Non-interest income rose 7.7% Y/Y to $2.7 billion, aided by higher fee revenue across most categories.&nbsp;
The net interest margin was 2.70%, compared with 3.10% in the year-ago period. Adjusted earnings per share totaled $0.90, beating the <a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">consensus of $0.88</a>.
The provision for credit losses for the first quarter of 2024 was $553 million, up 29.5% Y/Y, due to normalization in the credit environment.
The company recorded an average total loan decline of 0.5% Y/Y and an average total deposit growth of 0.1% on a linked quarter basis. The company reported a CET1 capital ratio of 10.0% as of March 31, 2024, compared with 9.9% on December 31, 2023.
Andy Cecere, Chairman, President and CEO said, &#8220;Diluted earnings per share of $0.90, as adjusted, excluded $(0.12) of notable items that included the last of our merger and integration-related charges related to the acquisition of MUFG Union Bank and an anticipated increase in the FDIC special assessment.&#8221;
&#8220;Our results benefited from good growth across our fee businesses driven by strong underlying client growth and activity, as well as prudent expense management. Despite a challenging interest rate environment and pressure on industry deposit levels, we again saw growth in consumer deposits during the quarter.&#8221;
Outlook: USB cut FY24 net interest income (taxable-equivalent basis) guidance to $16.1 billion-$16.4 billion from the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">previously expected $16.6 billion+.</a>
For the second quarter, USB expects net interest income (taxable-equivalent basis) to be relatively stable sequentially.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/03/37992797/banks-will-shine-in-2025-analyst-says-but-can-they-dodge-loan-losses" rel="noreferrer noopener">Banks Will Shine In 2025, Analyst Says, But Can They Dodge Loan Losses?</a>
Investors can gain exposure to the stock via&nbsp;IShares U.S. Regional Banks ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAT#NYSE">IAT</a>) and&nbsp;First Trust Nasdaq Bank ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXO#NASDAQ">FTXO</a>).
Price Action: USB shares are trading lower by 3.05% to $39.75 premarket on the last check Wednesday. 
Photo by JHVEPhoto via Shutterstock

Why U.S. Bancorp Shares Are Diving Premarket Today

PNC Financial Services Group Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PNC#NYSE">PNC</a>) shares are trading lower after it reported&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/n38265700/pnc-reports-first-quarter-2024-net-income-of-1-3-billion-3-10-diluted-eps-or-3-36-excluding-a-130-" rel="noreferrer noopener">first-quarter FY24 results</a>.
The bank reported a revenue decline of 8% Y/Y to $5.15 billion, missing the consensus of $5.19 billion. Revenue declined Y/Y due to lower net interest income and noninterest income.&nbsp;
Net interest income fell 9% Y/Y to $3.26 billion, with a net interest margin declining to 2.57% from 2.84% prior year quarter.
Noninterest income decreased 7% Y/Y to $1.88 billion due to a decline in capital markets and advisory revenue, fee income, and residential and commercial mortgage businesses.
Average loans fell 2% Y/Y, and average deposits decreased 4% Y/Y in the first quarter. Adjusted EPS of $3.36 came <a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">above the consensus of $3.02</a>.
The company reported a provision for credit losses of $155 million in the quarter (vs. $235 million a year ago), reflecting portfolio activity and improved macroeconomic factors. CET1 capital ratio stood at 10.1% vs. 9.2% in the prior year quarter. 
Dividend: On April 3, PNC&#8217;s board of directors declared a quarterly cash dividend per share of $1.55, payable on May 6, 2024, to shareholders of&nbsp;<a target="_blank" href="https://www.benzinga.com//node/38072433" rel="noreferrer noopener">record as of April 15, 2024.</a>
PNC returned $0.8 billion of capital to shareholders, comprising share repurchases over $0.1 billion in the quarter.
Bill Demchak, Chairman and CEO, said, &#8220;PNC delivered solid first quarter results generating net income of $1.3 billion which included an additional $130 million pre-tax FDIC special assessment. During the quarter, we grew customers, reduced expenses, increased spot deposits, maintained stable credit quality and continued to build upon our strong liquidity and capital positions.&#8221;
Investors can gain exposure to the stock via&nbsp;IShares U.S. Regional Banks ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAT#NYSE">IAT</a>) and&nbsp;Invesco Exchange-Traded Fund Trust II Invesco S&amp;P Ultra Dividend Revenue ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RDIV#NYSE">RDIV</a>).
Guidance: For FY24, PNC continues to <a href="https://d1io3yog0oux5.cloudfront.net/_4dd30b1093d2402ec5f5c10de4b909bf/pnc/db/2250/21495/presentation/1Q24+Earnings+Slides_Final.pdf">expect </a>revenue to be stable to down 2%, with net interest income declining 4% – 5% Y/Y.
The bank expects revenues to be stable and net interest income to be&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">down 1% on a sequential basis in the second quarter of FY24</a>.
Price Action: PNC shares are down 1.88% at $146.75 premarket on the last check Tuesday.
Photo via Wikimedia Commons

What's Going On With PNC Financial Shares Today?

M&amp;T Bank Corporation&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTB#NYSE">MTB</a>) shares are trading higher after it reported&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/n38243902/m-t-bank-corporation-nyse-mtb-announces-first-quarter-2024-results" rel="noreferrer noopener">first-quarter FY24 results</a>.
Revenue of $2.260 billion, slightly missing the consensus of $2.263 billion. Net interest income expressed on a taxable-equivalent basis was $1.69 billion, down 8% Y/Y.
Noninterest income totaled $580 million, slightly lower than $587 million in the year-earlier quarter, with the net interest margin contracting to 3.52% vs 4.04% a year ago.
Net income of $531 million came below $702 million a year ago. EPS was $3.09,&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">which came in line with the consensus</a>.
M&amp;T&#8217;s efficiency ratio was 60.8% compared to 55.5% in the year-earlier quarter. M&amp;T recorded a provision for credit losses of $200 million, higher than $120 million in the year-earlier quarter, reflecting elevated levels of criticized commercial and industrial loans and loan growth.
The allowance for credit losses totaled $2.19 billion or 1.62% of loans outstanding as of March 31, 2024, compared with $1.975 billion or 1.49% of loans outstanding in Q1 FY23.
M&amp;T held total assets of $211.5 billion as of March 31, 2024. Loans and leases, net of unearned discount, were $133.8 billion. The CET1 capital ratio was estimated at 11.07% as of March 31, 2024. 
Daryl N. Bible, M&amp;T&#8217;s Chief Financial Officer, said,&nbsp;&#8220;We are off to a solid start in 2024 as we were able to grow certain sectors of our commercial and consumer loan portfolios, while continuing to shrink our commercial real estate exposure. Expenses were prudently managed in the recent quarter and our selective approach to allocating resources to our strategic priorities with utmost care has not wavered.&#8221;&nbsp;
&#8220;M&amp;T&#8217;s liquidity and capital position strengthened, reflecting a stable deposit base, higher levels of borrowings and solid earnings after considering seasonal employee compensation expenses and an incremental FDIC special assessment.&#8221;
Investors can gain exposure to the stock via&nbsp;IShares U.S. Regional Banks ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAT#NYSE">IAT</a>) and&nbsp;SPDR S&amp;P Regional Banking ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>).
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/04/38242372/m-t-bank-earnings-are-imminent-these-most-accurate-analysts-revise-forecasts-ahead-of-earnings-call" rel="noreferrer noopener">M&amp;T Bank Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call</a>
Price Action: MTB shares are up 2.94% at $138.51 premarket on the last check Monday.
Photo via Wikimedia Commons

Why M&T Bank Shares Are Trading Higher Today

Huntington Bancshares Incorporated&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HBAN#NASDAQ">HBAN</a>) shares are trading higher today.&nbsp;BofA Securities&nbsp;analyst Ebrahim H. Poonawala upgraded the stock to Buy (from Neutral) and raised the&nbsp;<a target="_blank" href="https://www.benzinga.com/quote/HBAN/analyst-ratings" rel="noreferrer noopener">price target to $16 (from $14)</a>.
The analyst says that Huntington Bancshares is well-positioned to navigate multiple macroeconomic outcomes.
Moreover, franchise investments, footprint, and solid execution is expected to drive an acceleration in revenue growth into 2025, writes the analyst. The analyst says fewer rate cuts are positive, with a potential for FY24 net interest income (NII) to remain flat.&nbsp;
In particular, the analyst predicts near-term growth in auto floor plan/inventory finance (Q1 seasonally strong) to provide defensibility and forecasts revenue growth accelerating to +8.4% FY25 (vs. +3.7% peer median).
The analyst writes that $13 billion-15 billion in fixed-rate loan repricing should serve as a tailwind to NII growth in FY24/FY25.&nbsp;
Poonawala revised the EPS estimates by 4% to $1.20 for FY24, 15% to $1.44 for FY25, and 14% to $1.55 for FY26 thanks to higher NII.&nbsp;
In January 2024, Huntington Bancshares reported a 10% Y/Y decline in fourth-quarter FY23 net interest income, and CEO Steve Steinour expressed optimism for 2024, highlighting attractive growth prospects and&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/01/36697126/huntington-ceo-upbeat-on-2024-prospects-despite-missing-q4-revenue-estimates-projects-attractive-gr" rel="noreferrer noopener">potential acceleration in loan growth</a>.
Investors can gain exposure to the stock via&nbsp;IShares U.S. Regional Banks ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAT#NYSE">IAT</a>) and&nbsp;SPDR S&amp;P Regional Banking ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>).
Price Action: HBAN shares are up 2.83% at $13.98 on the last check Monday.
Photo via Wikimedia Commons

Upgrades

HBAN

Huntington Bancshares Gets Bullish Upgrade, Analyst Forecasts Accelerated Growth Despite Rate Worries

In a balanced portfolio, there&#8217;s always a chance of some investments underperforming. While backing losers isn&#8217;t ideal, there&#8217;s a way to ease the pain when it comes to year-end taxes.
Tax-loss harvesting&nbsp;is a strategy whereby portfolio losses can be offset against taxes on capital gains owed when you sell assets at a profit. If the losses exceed the profits, one can also offset taxes on other capital gains, like those from property or business sales.
Additionally, these losses can be employed to offset taxes on ordinary income — up to $3,000 a year in total can be offset this way — and losses not recovered in one year can be carried forward into subsequent years.
Also Read: <a href="https://www.benzinga.com/markets/equities/23/12/36325391/magnificent-7-widens-gap-with-rest-of-s-p-500-but-that-may-change-in-2024">&#8216;Magnificent 7&#8217; Widens Gap With Rest Of S&amp;P 500, But That May Change In 2024</a>
<h2 class="wp-block-heading">How Does Tax-Loss Harvesting Work</h2>
The capital gains you pay on profitable trades depend on how long you&#8217;ve held the assets. For positions held for more than one year, the rates are either 0%, 15% or 20%, depending on your taxable income. If you&#8217;ve held the positions for less than a year, your profits will be taxed at your normal income rate.
That&#8217;s 37% at the federal rate — more in some higher-tax states such as New York and California.
The rules on tax-loss harvesting, however, don&#8217;t allow for investors to take a taxable loss in an asset and then repurchase the same position straight back.
To get around this so-called &#8220;wash-sale&#8221; rule, tax lawyers interviewed by Bloomberg suggest replacing the sold asset with something with a different risk profile.
For example, Bloomberg suggests that if you sold out of your position in the SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>), which is down 10.78% this year, you could buy the iShares US Regional Banks ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAT#NYSE">IAT</a>), which is down 12.68%.
So, as we come to the end of the year, investors should be busy assessing their portfolios to figure out how best they can use this strategy to offset their tax bills. It&#8217;s worth $3,000, so get those calculators out.
Now Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/12/36309797/goldilocks-2024-investors-increasingly-optimistic-on-profits-outlook-for-next-year">Goldilocks 2024: Investors Increasingly Optimistic On Profits Outlook For Next Year</a>

Government

Education

Asset Sales

Economics

Year-End Planning: How To Make Winnings Out Of Losses Using Tax-Loss Harvesting

Mina Khattak, senior director crypto and Web3 at Worldpay, recalled at <a href="https://www.benzinga.com/events/digital-assets/">Benzinga&#8217;s Future of Digital Assets</a> event how FTX was in her company&#8217;s boarding process, but was not approved. 
<a href="https://www.benzinga.com/markets/cryptocurrency/23/11/35778694/exclusive-crypto-world-pivots-beyond-bankman-fried-era-in-wake-of-ftx-scandal">That lucky sidestep</a> underscores the importance of implementing extensive checks and due diligence, including know-your-customer (KYC) and anti-money laundering (AML) protocols. 
&#8220;The ability for Web2 companies and traditional financial services companies to start offering these services is going to make consumers a little more comfortable and giving them payment methods to acquire crypto is also going to facilitate onboarding — by layering all of those many steps with a trusted brand will help onboard users at scale,&#8221; she said.
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/23/11/35829273/exclusive-ripples-brendan-berry-on-2024-trends-why-cryptos-second-wave-is-all-about-utilit">Ripple&#8217;s Brendan Berry On 2024 Trends, Why Crypto&#8217;s &#8216;Second Wave&#8217; Is All About Utility</a>
Getting retail banks involved in the transaction of cryptocurrency would be a major step toward getting more investors to trade the asset class and, eventually, move forward to mass adoption, Khattak and other panelists explained.
An onslaught of fraudsters, hacks, scams and blunders saw millions of dollars worth of Bitcoin (<a href="https://www.benzinga.com/quote/BTC-USD">$BTC</a>) and other assets disappear in recent years: Onboarders of potential cryptocurrency traders are in the difficult position of rebuilding trust.
Eric Parker, co-founder of cryptocurrency wallet app Giddy, said that increasing adoption of crypto boils down to getting money onto the blockchain and keeping it safe while it&#8217;s there.
&#8220;You have to ask what are the use cases to make people willing to take money out of their savings accounts and be willing to put it on the blockchain,&#8221; he said. 
&#8220;It&#8217;s not that different to the 1990s when people started offering retail services over the internet and in a world of higher inflation and traditional markets that offer limited yield, decentralized finance is an escape from a system that is failing people,&#8221; he added.
Now Read: <a href="https://www.benzinga.com/markets/cryptocurrency/23/11/35848352/bitcoin-must-maintain-30k-support-to-avoid-major-sell-off-glassnode-warns">Bitcoin Must Maintain $30K Support To Avoid Major Sell-Off, Glassnode Warns</a>

Coverage of Bitcoin, Etherum, Ripple and all the latest digital currencies.

Cryptocurrency

Fintech news covering the emerging Financial Technology services sector

Fintech

$BTC

EXCLUSIVE: Why Traditional Banks Could Play A Major Role In Crypto Mass Adoption

Legendary investor, fund manager and PIMCO co-founder Bill Gross sees extraordinary long-term value in regional banks.
In a <a href="https://twitter.com/real_bill_gross/status/1719010907806904452">tweet</a> posted on Oct. 30, Gross said he sees regional bank stocks as a &#8220;falling knife&#8221; that &#8220;<a href="https://www.benzinga.com/topic/regional-banks">hasn't hit ground yet</a>&#8220;.
Back in <a href="https://www.marketwatch.com/story/pimco-co-founder-bill-gross-says-hes-bought-regional-bank-stocks-c8b4ba43">April</a>, the Bond King had bought four beaten-down regional bank stocks trading at 60% to book value:
<ul>
<li>Western Alliance Bancorp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WAL#NYSE">WAL</a>)</li>
<li>Synovus Financial Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNV#NYSE">SNV</a>)</li>
<li>PacWest Bancorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PACW#NYSE">PACW</a>)</li>
<li>SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>)</li>
</ul>
Gross sold off 80% of that holding in <a href="https://twitter.com/real_bill_gross/status/1684246743133851649">July</a> making &#8220;mucho bucks&#8221; on them.
The billionaire has again indicated an appetite for regional banks, saying he would be &#8220;waiting just a little bit more to own some of these at 60% book and 7% yields.&#8221;
Also Read: <a href="https://www.benzinga.com/23/09/34330117/regional-banks-navigating-a-goldilocks-scenario-amid-market-geopolitical-challenges">Regional Banks: Navigating A Goldilocks Scenario Amid Market &amp; Geopolitical Challenges</a>
We highlight three regional bank ETFs that you could keep on your watch list and consider when they touch bottom:
<h2 class="wp-block-heading">The SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>)</h2>
Trading since 2006, the SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) tracks the performance of the S&amp;P Regional Banks Select Industry Index. The fund has an expense ratio of 0.35% and has 49.76% of its portfolio invested in mid-cap regional banks, which large caps commanding a 12.2%. Small-cap regional bank stocks command a good 33.69% of this fund&#8217;s portfolio:
<figure class="wp-block-table"> 
<table>
<thead>
<tr>
<th>Symbol</th>
<th>Holding</th>
<th>% Assets</th>
</tr>
</thead>
<tbody>
<tr>
<td>TFC</td>
<td>Truist Financial Corporation</td>
<td>3.26%</td>
</tr>
<tr>
<td>MTB</td>
<td>M&amp;T Bank Corporation</td>
<td>3.16%</td>
</tr>
<tr>
<td>FHN</td>
<td>First Horizon Corporation</td>
<td>3.07%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Source: VettaFi</figcaption></figure>
KRE is down about 32% for the year, trading at $39.64. The ETF has 52-week low of $34.52. 
<h2 class="wp-block-heading">The iShares U.S. Regional Banks ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAT#NYSE">IAT</a>)</h2>
Launched in 2006, the iShares U.S. Regional Banks ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAT#NYSE">IAT</a>) tracks the performance of the Dow Jones U.S. Select Regional Banks Index. The fund has an expense ratio of 0.40% and has 61.14% of its portfolio invested in large-cap regional banks, which mid-caps coming in next at 38.71%.
Top three holdings of the fund include:
<figure class="wp-block-table"> 
<table>
<thead>
<tr>
<th>Symbol</th>
<th>Holding</th>
<th>% Assets</th>
</tr>
</thead>
<tbody>
<tr>
<td>USB</td>
<td>U.S. Bancorp</td>
<td>14.28%</td>
</tr>
<tr>
<td>PNC</td>
<td>PNC Financial Services Group, Inc.</td>
<td>13.26%</td>
</tr>
<tr>
<td>TFC</td>
<td>Truist Financial Corporation</td>
<td>11.01%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Source: VettaFi</figcaption></figure>
IAT is down about 34% for the year, trading at $31.65. The ETF has a 52-week low of $28.80.
<h2 class="wp-block-heading">The Invesco KBW Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBWR#NYSE">KBWR</a>)</h2>
Trading since 2011, the Invesco KBW Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBWR#NYSE">KBWR</a>) tracks the performance of the KBW&nbsp;Nasdaq Regional Banking Index. The fund has an expense ratio of 0.35% and has 54.68% of its portfolio invested in mid-cap regional banks, which large caps commanding a 45.26%.
Top three holdings of the fund include:
<figure class="wp-block-table"> 
<table>
<thead>
<tr>
<th>Symbol</th>
<th>Holding</th>
<th>% Assets</th>
</tr>
</thead>
<tbody>
<tr>
<td>WBS</td>
<td>Webster Financial Corporation</td>
<td>3.93%</td>
</tr>
<tr>
<td>CFR</td>
<td>Cullen/Frost Bankers, Inc.</td>
<td>3.88%</td>
</tr>
<tr>
<td>CBSH</td>
<td>Commerce Bancshares, Inc.</td>
<td>3.68%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Source: VettaFi</figcaption></figure>
KBWR is down about 26% for the year, trading at 41.83. The ETF has a 52-week low of $37.49.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/10/35243332/q3-earnings-season-starts-strong-for-banks-as-high-interest-rates-fuel-profits-bona">Q3 Earnings Season Starts Strong For Banks As High Interest Rates Fuel Profits Bonanza</a>

Opinion

CBSH

PACW

Bill Gross Sees 'Extraordinary Long-Term Value' in Regional Banks: 3 ETFs To Watch

Bank stocks have been suffering since the <a href="https://www.benzinga.com/news/23/03/31356018/svb-financial-collapse-triggers-experts-fear-of-softbank-buyback-alibaba-mark-down-arm-ipo-valuation">collapse last week of </a><a href="https://www.benzinga.com/news/23/03/31356018/svb-financial-collapse-triggers-experts-fear-of-softbank-buyback-alibaba-mark-down-arm-ipo-valuation">SVB Financial Group</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SIVB#NASDAQ">SIVB</a>), also known as Silicon Valley Bank.
The entire banking sector became affected by the fall of America's 16th largest lender.&nbsp;
While the impact is global, the U.S. banking sector continues to receive hits from the aftermath of the SVB's fallout, as investors pull their money away from the sector and depositors pull their funds in an effort to avoid further risk.
Shares of Credit Suisse (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CS#NYSE">CS</a>), one of Europe's "too big to fail" banks, <a href="https://www.benzinga.com/news/23/03/31357630/credit-suisse-plunges-hard-putting-market-rally-at-risk-whats-going-on-with-the-swiss-bank">dropped almost 25% on Wednesday</a>. Other European banks, such as the French Societe Generale and BNP Paribas have also been hardly affected by the collapse.
Read Also: <a href="https://www.benzinga.com/news/23/03/31360766/silicon-valley-bank-creditors-purchased-bonds-at-distressed-levels-anticipating-potential-bankruptcy">Silicon Valley Bank Creditors Purchased Bonds At Distressed Levels Anticipating Potential Bankruptcy Sale</a>
<h3>Regional Banks</h3>
The SVB collapse is sending shockwaves across the U.S.&nbsp;
First Republic Bank (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FRC#NYSE">FRC</a>) has been first in the line of fire. The San Francisco-based firm lost 70% of its value this week and 22% on Wednesday alone.
Several analyst firms including Compass Point, Raymond James and Wolfe Research have downgraded the stock since Monday. On Wednesday, the bank's credit rating was downgraded to from A- to BB+, a junk rating by S&amp;P.
Another regional bank, Salt Lake City-based Zions Bankcorporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZION#NASDAQ">ZION</a>), lost 33% of its value this week and an additional 1.7% On Wednesday.
Cleveland-based KeyCorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KEY#NYSE">KEY</a>) was down 6% Wednesday and 33% in one week.
PacWest Bancorp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PACW#NASDAQ">PACW</a>) was down 20% on Wednesday and almost 60% in one week.
iShares US Regional Banks ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAT#NYSE">IAT</a>), an ETF focused on regional U.S. banks, lost 3% on Wednesday and almost 25% in one week.
<h3>Big U.S Banks</h3>
The SVB blow also reached the country's largest banking institutions. KBW Bank Index, a benchmark for the banking sector, is down 21% in the past week and 4.7% on Wednesday alone. The index tracks the 24 largest lending banks and thrifts.
Citigroup Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>) is down 12% this week and 5.8% on Wednesday.
JPMorgan Chase &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) dropped 4.8% on Wednesday.
Wells Fargo &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) lost 4% on Wednesday to a total of 11% this week.
Charles Schwab Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHW#NYSE">SCHW</a>), one of the worst-affected large U.S. banks of the crisis, recovered 4% of its value on Wednesday after a 20% drop this week.
Bank of America Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>) is down 2.1% on Wednesday and 12.8% this week.
Photo by Etienne Martin on Unsplash.

SCHW

SIVB

ZION

Regional, Big U.S. And Global Banks Shake From SVB Collapse On Wednesday

The collapse of Silicon Valley Bank (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sivb#NASDAQ">SIVB</a>) 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&rsquo;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 <a href="https://www.benzinga.com/government/23/03/31299908/fdic-shuts-down-silicon-valley-bank-here-are-the-details">bank&rsquo;s receiver on Friday.</a>
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 <a href="https://www.benzinga.com/markets/cryptocurrency/23/03/31311948/bailout-feds-rescue-depositors-amid-svb-bank-collapse">announced funding to backstop </a>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<a href="https://www.benzinga.com/government/23/03/31311974/signature-bank-closed-by-regulators-fed-announces-backstop-to-safeguard-depositors"> shut down</a> Signature Bank (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sbny#NASDAQ">SBNY</a>), 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.
&ldquo;The U.S. banking system remains resilient and on a solid foundation,&rdquo; the Fed said.
Signature Bank was previously<a href="https://www.benzinga.com/markets/cryptocurrency/23/03/31301740/short-seller-who-predicted-ftx-silvergate-capital-collapses-and-shorted-svb-financial-has-"> highlighted by a short seller </a>who had correctly called out issues from FTX, Silvergate Capital (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/si#NYSE">SI</a>) 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:&nbsp;<a href="https://www.benzinga.com/news/23/03/31312372/shuttered-signature-banks-deposits-substantial-assets-transferred-to-bridge-bank-by-fdic-what-you-sh">Shuttered Signature Bank&#39;s Deposits, Substantial Assets Transferred To Bridge Bank By FDIC: What You Should Know</a>
Western Alliance Bancorp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wal#NYSE">WAL</a>): -82%
First Republic Bank (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/frc#NYSE">FRC</a>): -70%
Customers Bancorp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cubi#NYSE">CUBI</a>): -56%
PacWest Bancorp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pacw#NASDAQ">PACW</a>): -53%
Metropolitan Bank Holding (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mcb#NYSE">MCB</a>): -49%
Comerica Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cma#NYSE">CMA</a>): -46%
East West Bancorp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ewbc#NASDAQ">EWBC</a>): -41%
KeyCorp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/key#NYSE">KEY</a>): -34%
Zions Bancorp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/zion#NASDAQ">ZION</a>): -28%
Bank of Hawaii (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/boh#NYSE">BOH</a>): -28%
Fifth Third Bancorp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/fitb#NASDAQ">FITB</a>): -27%
First Horizon Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fhn#NYSE">FHN</a>): -22%
Huntington Bancshares (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/hban#NASDAQ">HBAN</a>): -20%
Truist Financial Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tfc#NYSE">TFC</a>): -20%
Charles Schwab Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/schw#NYSE">SCHW</a>): -19%
Mercury Fintech Holding (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mfh#NASDAQ">MFH</a>): -13%
Regions Financial (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rf#NYSE">RF</a>): -13%
Citizens Financial Group (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cfg#NYSE">CFG</a>): -12%
AmeriServ Financial (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/asrv#NASDAQ">ASRV</a>): -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 (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iat#NYSE">IAT</a>) is down 17% at the time of writing. The Invesco KBW Bank ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/kbwb#NASDAQ">KBWB</a>) is down 14% on Monday.&nbsp;
Bloomberg <a href="https://finance.yahoo.com/news/us-regional-banks-remain-under-092829687.html">said </a>the Invesco KBW Bank ETF had $245 million in outflows recently, marking one of the largest exits in 2023.&nbsp;
Stay tuned to<a href="https://pro.benzinga.com/feature/newsfeed/?gspk=bHVrZWphY29iaTUzNDg&amp;gsxid=tdEE0VrK8Jeg&amp;ref=lukejacobi5348"> Benzinga Pro for all the latest headlines.</a>
Read Next:&nbsp;<a href="https://www.benzinga.com/news/23/03/31300370/watch-out-for-these-etfs-as-svb-financial-bleeds-today">Watch Out For These ETFs As SVB Financial Bleeds Today</a>

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