15 Mar, 2023

Week ended March 10 among worst for US bank stocks since 2009

By Alex Graf and Xylex Mangulabnan


The week ended March 10, following the liquidation of Silvergate Capital Corp. and failure of Silicon Valley Bank, was the third-worst trading week for U.S. bank stocks since the global financial crisis.

The S&P U.S. BMI Banks index closed March 10 at 139.04, down 11.6% for the week, marking the index's 13th-worst week ever, according to S&P Global Market Intelligence data.

Weeks from the crisis era still dominate the list, with the week ended March 6, 2009, topping the chart with a 23.3% decline. The weeks ended March 20, 2020, and Feb. 20, 2009, round out the top three with 18.1% and 17.9% drops, respectively.

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Share prices for U.S. banks with a market cap over $5 billion dropped the most during the week ended March 10, declining 11.7%. The drop for banks with a market cap under $250 million was less steep, at 5.3% — though all U.S. bank segments fell more than the S&P 500, which declined 4.5% on the week.

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Banks with exposure to venture capital or cryptocurrency deposits took the biggest hit: Silvergate Capital Corp., which announced its voluntary liquidation March 8, finished the week down 56.3%, while PacWest Bancorp closed March 10 down 55.3%. Signature Bank finished March 10 down 38.4% before failing two days later. In the week leading up to its stock trading halt on March 10, SVB Financial's stock was down 62.7%.

SNL Image * Access detailed data on failed banks.
* Take part in S&P Global Market Intelligence's U.S. Bank Outlook Survey – The State of U.S. Banks & Fintech.
* Read more about the liquidity crunch and the fallout for the financial sector in our new Issue in Focus.

Despite price drops across the banking sector, eight banks recorded modest increases in their share prices, with Philadelphia, Miss.-based Citizens Holding Co. recording the largest increase at 2.0%.

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