Looking at my spreadsheet of banking and insurance issues shows a sea of red–California banker First Republic (FRC) seems to be taking one of biggest hits–common and preferreds–one issue off $6 right now.
I hold some Customers Bancorp (CUBI) and Bridgewater Bancshares (BWBB) preferreds and right now I have no intention to sell at this time–they are modest positions.
I would suggest that holders of banking preferreds review the balance sheets of their company’s–check their capital levels relative to the required levels. How much of their investment portfolio is ‘hold to maturity’ and watch for statements from the company on deposits leaving the bank–most bankers will be just fine with minor outflows–or maybe they need to up their CD rates. Many of the small banks offer inferior rates on deposits–locally one bank is offering 4.11% on a 21 month CD–1% under what I can get from the big banks..
We should get statements out of most banks today on their individual positions. Also I wouldn’t be surprised that we get a very major announcement from Silicon Valley Bank (SVB Financial) at any moment–they badly need an announcement to save the bank.