We have had the ‘big’ banks reporting their earnings, but the smaller players start reporting in a few days and it will be interesting to see how it plays out. These issues have preferreds and baby bonds outstanding.
Here are some earning release dates that are known -(not all I’m sure). Dates are from Trading View.
Bank of OZK 7/20/2023
Customers Bancorp 7/27/2023
Bridgewater Bank 7/26/2023
Zions Bancorp 7/19/2023
Merchants Bancorp 8/1/2023
Valley National 7/27/2023
ConnectOne Bank 7/27/2023
Dime Community 7/28/2023
Ocean First 7/20/2023
Associated Bancorp 7/20/2023
Mainstreet Bancorp 7/19/2023
Citizens Financial 7/19/2023
Heartland Financial 7/24/2023
United Community 7/18/2023
Texas Capital Bancshares 7/20/2023
Check out the options activity for OZK….
Expiring on 7/21, the day after earnings….
The volume on some of their puts is in the stratosphere..
Strike Volume
35 1541
37 6511
39 5051
Makes you think that someone knows something…
OZK has only one preferred OZKAP outstanding. It is low 4.65% coupon and is yielding 7.4% at today’s close at $15.80. So these investors do not expect divd to be cut etc.
The options volume today could be those who bought those PUTs (perhaps even part of a spread) exiting them expecting stock not to move much or move higher?
Costs of capital for the smaller banks, the non-TBTFs, will likely be up. The smaller banks are like Ben Franklin’s New Jersey. They are kegs tapped at both ends. Many are paying more on consumer accounts to forestall more run offs to MMFs, T-bills or the TBTFs while also borrowing at the wholesale window from the FHLB at say ~5%, versus zero before. So earnings could be down Y2Y.
That may not affect stock prices. Market Watch has pointed out that bank earnings estimates have been cut, so the familiar Wall Street “beats estimates” phenomenon may occur. I expect to see a lot of cheerful press releases, that will require the hard work of looking for the fine print numbers on net interest margins and amounts of FHLB borrowings. Just my opinion. DYODD.
Bear, I remain concerned about the Bloomberg article that said the regulators are encouraging banks to “work with” their distressed customers. That means extending terms, waiving covenant violations, etc, to keep the loans Performing and not on the Non-Performing) list.
Entering the land of non-transparent financials.
Postponing problems always worsens their impact.
KeyCorp (KEY) which I’m following is 7/20 before the market opens