Shares of regional bank stocks took a hit in morning trading today, following disappointing earnings reports from Regions Financial and Comerica. Both banks reported a decline in deposits compared to the previous year, which led to a negative market response.
Regions Financial stock plummeted by more than 10% to $14.79, while Comerica’s shares fell by 6%. Zions Bancorporation and Citizens Financial Group also experienced drops of 4% and 3% respectively. KeyCorp shares slipped by 4%.
Regions Financial announced their third-quarter results earlier today, revealing an increase in earnings compared to the previous year. However, the results fell short of Wall Street analysts’ expectations, and revenue also saw a slight decline. Additionally, deposits were down by almost 8% from the previous year.
Comerica, based in Dallas, also published their results today. Though their third-quarter earnings dropped, they still managed to surpass analysts’ expectations according to FactSet. However, deposits fell by around 11% compared to the previous year.
Huntington Bancshares is another bank that reported a decline in earnings compared to the previous year. Surprisingly, their figure topped analysts’ expectations, and the company’s deposits saw a slight increase.
As a result of these reports, Huntington shares slipped by approximately 2%.