This is an excellent write up of what happened with Silicon Valley Bank and the potential risks facing other regional banks. FYI, Simply Safe Dividends is a service I use and pay for to evaluate companies in my portfolio. They have been invaluable to me since I started investing for dividend income. There is also a link in this blog post to their Bank Risk Assessment Spreadsheet which may help you evaluating your own holdings.
We reviewed 59 of the most relevant bank stocks to assess their exposure to the factors (high dependence on uninsured deposits, flighty base of depositors, large unrealized investment losses) that caused SVB and Signature to fail.
We also analyzed which banks could face the greatest headwinds if regulations become tougher at smaller banks to address these risk factors.
While visibility is admittedly low with no real-time data on deposit outflows, most of the 59 banks appear somewhat insulated from these issues, especially in light of policy makers’ emergency measures to restore confidence in banks and soothe near-term liquidity strains.
Assuming the Fed’s actions (more on that below) minimize the probability of widespread bank runs, we do not anticipate changing many Dividend Safety Scores in response to these events outside of the downgrades we issued this week for First Republic, Zions, and UMB Financial.Most Regional Banks Look Stable but May Face Tougher Regulations, Higher Funding Costs – Simply Safe Dividends