PacWest Bancorp and Western Alliance Bancorp each plunged by more than 25% on Tuesday amid a broader sell-off in regional bank stocks a day after JPMorgan chief Jamie Dimon’s said that the latest leg of the crisis is over.
Shares of PacWest and Western Alliance fell as much as 26% and 27%, respectively. The S&P Regional Banks Select Industry Index fell 7%, while the KBW Regional Banking ETF fell 6%. Other banks caught in the sell-off include Zions Bancorp, which was down as much as 23%, and Fifth Third Bancorp, which fell 7%.
The crash in regional bank shares comes a few days after First Republic Bank failed and was taken over by the Federal Deposit Insurance Corporation and its assets sold to JPMorgan. The collapse followed weeks of uncertainty about the bank’s health following the failures in March of Silicon Valley Bank and Signature Bank.
After the announcement, Dimon looked to soothe lingering concerns of more banking sector trouble, saying that “this part of the crisis is over.”
Los Angeles-based PacWest tumbled by more than 27%. It is ranked 53rd among U.S. lenders with $41.2 billion in assets as of the end of last year, according to Federal Reserve data.
Phoenix, Arizona-based lender Western Alliance, the No. 40 U.S. bank with $68 billion in assets, sank 15% while Cleveland, Ohio-based KeyCorp (KEY.N), the 20th largest bank with $188 billion in assets, fell 9%.
Comerica (CMA.N), a Dallas, Texas-based bank ranked 37th among U.S. lenders with $86 billion in assets, shed 12%. Columbus, Georgia-based Synovus Financial Corp (SNV.N), with $60 billion in assets and ranked the 42nd U.S. biggest bank, lost nearly 7%.
Valley National Bankcorp (VLY.O), which owns Valley National Bank based in Passaic, New Jersey and is the 43rd largest lender with $57 billion in assets, closed 3% lower after shedding more than 20% on Monday.