Nathan Stovall

Host of the Street Talk podcast & director of FIG Research at S&P Global Market Intelligence. Talk about all things banking & finance. Opinions are my own.

[Mohamed A. El-Erian @elerianm]

To quote my friend LS, “they are all over the place!”
Thanks Nick for circulating the table
#economy #markets #federalreserve @NickTimiraos

[Nathan Stovall @StreetTalkpod]

Scotiabank inks $2.8B investment in KeyCorp - 14.9% stake in $KEY, 18% premium to 8/9 close. $BNS sees deal as financially attractive, with optionality for future US growth. $KEY will use capital to restructure its bond portfolio, meet #BaselIII endgame
https://t.co/ukTIuSwOAT

[Nathan Stovall @StreetTalkpod]

Bank M&A heating up - 2nd $500M-plus bank deal in a week - Renasant to acquire First Bancshares for $1.2B. WesBanco agreed to buy Premier for $959M last week. The deals mark the 4th & 5th $500M-plus deals in '24 - all 5 have come in the last 3 months
https://t.co/tpI6EOrWD3

[Lauren Seay @LaurenSeay13]

$HMST shareholders voted down the golden parachute payouts, but the vote was merely a formality as it was non-binding and execs will still get their payments: https://t.co/d31nnsIZqo

[CaptainGeorgeNorth @Capt_GN]

Which way now?

[CorpusColossus @CorpusCol]

A major US bank narrative is that $JPM, $BAC and the other megabanks will crush the community banks like beetles with superior IT. This is a little true, but mostly not.

[Colarion @colarion]

$NYCB analyst: “What do you think about FDIC acquisitions?”

NYCB CEO: we would like to avoid becoming one.

[Rick Childs @bank_doc]

Not boding well for deals

[Lauren Seay @LaurenSeay13]

3 banks hired 26 of New York Community's deposit gathering teams. The departures come at a vital time for the company, which is working on a turnaround that requires maintaining and growing deposit funding, analysts said https://t.co/bFOKStEQFz

[Rick Childs @bank_doc]

Really nice article on S&P MI about liquidity - well done
Zain and @StreetTalkpod

US banks will trade liquidity pressures for higher credit costs

Zain Tariq and Nathan Stovall•
Market Intelligence Thursday, April 11, 2024 8:06 AM ET

[Lauren Seay @LaurenSeay13]

Heightened capital requirements that the bank plans to raise $200M to meet; a CRE related provision; creating an action plan for making more mortgages (we've seen this one a lot recently). Story here: https://t.co/7FLNyoG9QK

[Bank Reg Blog @bank_reg]

According to this press release, the very long pending Provident-Lakeland merger has finally received FDIC approval, but subject to conditions including (among other things) a capital raise, higher minimum capital requirements, and limits on CRE exposure

https://t.co/1IvaCYztpR

[Colarion @colarion]

So $NYCB has $18bn of loans at the mercy of a board that capriciously sets rents.

2 on the board are landlords
2 are tenants.

5 are appointed by the mayor.

Hey Mayor Adams, you can skip your next fundraiser, the new $NYCB ownership has some ideas to take care of you.

[Lauren Seay @LaurenSeay13]

🚨 SCOOP from @Yizhu_Wang_ and me: Blue Ridge $BRBS received a purchase offer from a North Carolina-based community bank in late December, but it is sticking with the recap deal it struck https://t.co/rmuAXsyosV

[Colarion @colarion]

People call $NYCB a panic but it's a conservative reset to new $0.60 - $0.80 range estimates and slender credit disclosure.

Also the OCC "regulator" who drove this might check in with colleagues regulating $USB on how to best manage capital transitions.

[Kathy Jones @KathyJones]

Two things are true: The economy is buoyant and inflation is falling. It shouldn't stop the Fed from cutting rates, but it seems that some members of the FOMC will see a strong labor market as justification for waiting to cut rates. Bond market stays volatile.

[Sheila Bair @SheilaBair2013]

Thoughtful speech. May be a good idea to have banks preposition some collateral with Fed to ensure speedy access to liquidity when needed. But this is no substitute for the FDIC’s rock solid, time tested guarantee and will not stop runs. Acting Comptroller Discusses Bank Liquidity Risk https://t.co/Ln2ePcbUhQ

[Yahoo Finance @YahooFinance]

"We've seen continued pressure on deposits, continued pressure on liquidity," S&P Global Market Intelligence's @StreetTalkpod says on $CFG and $USB Q4 earnings. It's "really a reminder that a higher-for-longer rate environment is here."

[Timyan Bank Alert @TimyanBankAlert]

ST disappointment for $FSUN holders looking for a sale
Great for bank investors
1) Victory for $HMST activists @thebankzhar and Blue Lion
2) Fresh capital in from savvy investor (Wellington) as in $BANC $PACW deal
3) flushes serial bad actor, Mark Mason

[Nathan Stovall @StreetTalkpod]

HomeStreet agrees to sell to FirstSun Capital for 37% market premium ~4 months after reportedly exploring strategic options. FirstSun inks $175M equity investment from Wellington, sees 30%+ EPS accretion, <2yrs earnback on deal's tangible book dilution
https://t.co/E8yrGZ80yP.