copyright1997reloaded
Thinks s/he gets paid by the post
Their Net Interest Margins (NIM) are getting impacted. The bigger issue (I think, without having looked at a bunch of their balance sheets) is that they have deposits (already deposited in the past when cash was flush for a variety of reasons including stimmy checks and other stimulus) that they had to invest. So they invested in things like treasuries (at almost nothing), commercial real estate (some of which is pretty iffy now in terms of return), etc.
So now rates have gone up and their deposit base is leaving. If they raise rates dramatically, they have now borrowed high and lent low (not a good strategy to stay in business). As rates have gone up and STAYED up, more and more people are either moving funds or only staying if given significantly higher yields.
So I looked up a few of the holdings of KRE.
NYCB - deposits up 44%, but this is hard to figure out (quickly) as it includes signature assets. "Total deposits increased $26.1 billion, or 44%,
from the prior quarter, primarily due to the
Signature transaction, net of expected
outflows."
MTB - deposits off 2.7%
Zions - deposits off 16%
RF - off 3%
CFG - off 4.7%
So at least these don't seem super bad. (Given how fast money can move these days I don't know how up to date or valid the numbers from the most recent quarterly report are.)