I been with a CU for 35 years, and yes, its much better than a bank.
There are going to be several banks fail this year. This could be the first big domino in a spiral like 2009. Might be a good idea to have some liquidity at home. I'll bet people are spreading assets around to make sure they don't get hosed like the depositors of SVB. I'm pretty sure the saying "don't put all your eggs in one basket" saying could be applied here.
Kramer is a shill for every company just about to fail. Bet he has a lot of short sales.
10 banks that may face trouble in the wake of the SVB Financial Group debacle
Philip van Doorn
Last Updated: March 11, 2023 at 8:28 a.m. ET
The entire banking industry seemed to take it on the chin on March 9, with the KBW Nasdaq Bank Index sinking 8%.
MarketWatch photo illustration/iStockphotoAs interest rates have risen, many banks have become more profitable because the spreads between what they earn on loans and investments and what they pay for funding has widened. But there are always exceptions.
Below is a screen of banks that are bucking the industry trend of expanding net interest margins, followed by another list of banks whose margins have widened the most over the past year.
On March 8, SVB Financial Group SIVB,-60.41% sold $21 billion in securities for a loss of $1.8 billion. SVB was the holding company for Silicon Valley Bank of Santa Clara, Calif. It had $212 billion in assets as of Dec. 31.
The bank said it was repositioning to “increase asset sensitivity, to take advantage of the potential for higher short-term rates, partially lock-in funding costs, better protect net interest income (NII) and net interest margin (NIM), and enhance profitability.”
The bank had long focused on lending to and gathering deposits from venture capital firms. It said on March 8 that “client cash burn has remained elevated and increased further in February, resulting in lower deposits than forecasted.”
Silicon Valley Bank wasn’t able to sooth customers sufficiently to prevent a run on deposits. So it was closed by California regulators on Friday and handed over to the Federal Deposit Insurance Corp.
The entire banking industry seemed to take it on the chin on March 9, with the KBW Nasdaq Bank Index BKX, -3.91% sinking 8%.
Another bank whose stock dropped amid concerns over liquidity was Signature Bank SBNY, -22.87% of New York, which issued a statement meant to calm depositors and shareholders. Signature Bank’s shares fell 12% on March 9 and were down another 24% in premarket late trading on March 10.
Red margin flags
Before SVB Financial decided to take such a dramatic step, the movement of its net interest margin was signaling that the bank wasn’t well positioned for the combination of rising interest rates and slowing loan growth in the venture capital space.A bank’s net interest margin is the spread between its average yield on loans and investments and its average cost for deposits and borrowings. This is an annualized calculation. Here’s how the NIM moved for SVB Financial over the past year:
| Bank | Ticker | NIM – Q4 2022 | NIM – Q3 2022 | NIM – Q2 2022 | NIM – Q1 2022 | NIM- Q4 2021 |
| SVB Financial Group | SIVB,-60.41% | 2.00% | 2.28% | 2.24% | 2.13% | 1.91% |
Source: FactSet |
So now the question is which other banks might face pressure because their net interest margins have contracted, or because their margins have only expanded slighlty?
Starting with a list of U.S. banks with total assets of at least $10 billion, and removing purer investment banks, such as Goldman Sachs Group Inc. GS, -4.22% and Morgan Stanley MS, -2.33%, we looked at 108 banks.
A uniform set of net interest margins for the past five quarters isn’t available from FactSet for the full group — it is only available for 56 of the banks. So instead, we screened for net interest income (total interest income less total interest expense) divided by average total assets.
By this screen, 102 of 108 banks showed expanding margins for the fourth quarter from a year earlier.
Here are the 10 showing contracting margins over the past year, or the smallest expansions of margins:
| Bank | Ticker | City | Net interest income/ avg. assets – Q4 2022 | Net interest income/ avg. assets – Q3 2022 | Net interest income/ avg. assets – Q4 2021 | One-year contraction or expansion |
| Customers Bancorp Inc. | West Reading, Pa. | 2.61% | 3.10% | 4.03% | -1.42% | |
| First Republic Bank | San Francisco, Calif. | 2.28% | 2.53% | 2.50% | -0.22% | |
| Sandy Spring Bancorp Inc. | Olney, Md. | 3.10% | 3.34% | 3.29% | -0.19% | |
| New York Community Bancorp Inc. | Hicksville, N.Y. | 2.10% | 2.06% | 2.20% | -0.11% | |
| First Foundation Inc. | Dallas, Texas | 2.35% | 2.98% | 2.41% | -0.07% | |
| Ally Financial Inc. | Detroit, Mich. | 4.04% | 4.20% | 4.09% | -0.05% | |
| Dime Community Bancshares Inc. | Hauppauge, N.Y. | 2.98% | 3.20% | 2.95% | 0.03% | |
| Pacific Premier Bancorp Inc. | Irvine, Calif. | 3.34% | 3.34% | 3.27% | 0.07% | |
| Prosperity Bancshares Inc. | Houston, Texas | 2.72% | 2.78% | 2.65% | 0.07% | |
| Columbia Financial Inc. | Fair Lawn, N.J. | 2.69% | 2.78% | 2.60% | 0.09% | |
Source: FactSet |
Read Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.
SVB Financial ranked 11th worst in the screen, with net interest income/average assets of 1.93% in the fourth quarter, up from 1.83% in the year-earlier quarter.
Most margin improvement
To end on a positive note, these banks showed the widest expansion of margins, based on net interest income divided by average assets:| Bank | Ticker | City | Net interest income/ avg. assets – Q4, 2022 | Net interest income/ avg. assets – Q3, 2022 | Net interest income/ avg. assets – Q4, 2021 | One-year expansion |
| Comerica Inc. | Dallas, Texas | 3.54% | 3.31% | 1.91% | 1.63% | |
| First Horizon Corp. | Memphis, Tenn. | 3.57% | 3.21% | 2.24% | 1.33% | |
| M&T Bank Corp. | Buffalo, N.Y. | 3.68% | 3.34% | 2.37% | 1.31% | |
| Stellar Bancorp Inc. | Houston, Texas | 4.16% | 3.95% | 2.85% | 1.31% | |
| Enterprise Financial Services Corp. | Clayton, Mo. | 4.28% | 3.78% | 3.08% | 1.20% | |
| Berkshire Hills Bancorp Inc. | Boston, Mass. | 3.61% | 3.26% | 2.43% | 1.18% | |
| East West Bancorp Inc. | Pasadena, Calif. | 3.77% | 3.50% | 2.61% | 1.16% | |
| Texas Capital Bancshares Inc. | Dallas, Texas | 3.22% | 3.01% | 2.08% | 1.14% | |
| Wintrust Financial Corp. | Rosemont, Ill. | 3.51% | 3.17% | 2.41% | 1.10% | |
| WSFS Financial Corp. | Wilmington, Del. | 3.90% | 3.50% | 2.81% | 1.09% | |
Source: FactSet |
Probably wrong, but I 'smell' another government bank bailout coming soon 
Looks like First Republic had a bank run on Saturday. We’ll see if they can put the genie back in the bottle on Monday or fear spreads
https://www.toddstarnes.com/uncateg...line-up-outside-first-republic-bank-branches/
https://www.toddstarnes.com/uncateg...line-up-outside-first-republic-bank-branches/
These banks are failing because their cash cow is drying up. The Fed is falling behind on the money printing.
Banks used to survive on deposits from people. The banks would then loan out the money and charge interest and pay a portion of that to the depositors. Banks also invested in the market and earned dividends that in turn was "shared" with depositors.
Now they mostly run on money funneled to them by the Fed and they use that money to invest in the market. Seems to me that very little is loaned out to business and Joe mortgage seeker.
Your view might be different, but that is how I see it.
Then, too, one has to wonder what SVB did with all the deposits it received from those tech companies. Where is it? Where did it go? Someone has it. Money doesn't just disappear. Real money, that is!
It's 10:14 AM right now. Do you know where your money is?
Woody
Banks used to survive on deposits from people. The banks would then loan out the money and charge interest and pay a portion of that to the depositors. Banks also invested in the market and earned dividends that in turn was "shared" with depositors.
Now they mostly run on money funneled to them by the Fed and they use that money to invest in the market. Seems to me that very little is loaned out to business and Joe mortgage seeker.
Your view might be different, but that is how I see it.
Then, too, one has to wonder what SVB did with all the deposits it received from those tech companies. Where is it? Where did it go? Someone has it. Money doesn't just disappear. Real money, that is!
It's 10:14 AM right now. Do you know where your money is?
Woody
If I had any money, I sure would know where it was
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Do you mean was or went?If I had any money, I should would know where it was
Woody
most of it is in the hands of third generation welfare b*stards, the rest I keep in broke down trucks and tractors for safe keeping.
