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Small Banks Reporting Solid Results

Last night I posted a number of earnings reports (in headlines of interest) from banks of various sizes and thus far the results have been solid—down from a year ago as net interest income have moved somewhat lower given the cost of deposits, but this was expected as folks expected to be paid for their deposits.

Importantly Phoenix based Western Alliance Bancorp (WAL) reported and their deposits grew by $3.5 billion for the quarter ending 6/30/23. Earnings were solid and NAV grew.

Is the banking crisis over? Not in total, but it appears that most company’s have navigated well and the likelihood of a total meltdown is now minimal. Somewhere is a bank with issues—we don’t know where it is and won’t know until the FDIC moves in and seizes them. The last few days have seen the common shares of most bankers move nicely higher–certainly investors are feeling good with these company’s.

It is likely I will move to make what may be my last investment in the banking sector today or tomorrow. As one can see in my holdings that I post I hold quite a few positions in my portfolio of insurance and banking company’s–no single position is more than a 1/2 position, but I want to remain well diversified, very well diversified.

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