Who Looks Like Valley

Valley had to raise common so who else may be about to dilute shareholders?

Valley Bank last eve announced a $400mm common raise around $9.35. While not official and they would never tell you, this is likely a tap from regulators due to CRE concentrations.

Here is yesterday’s article. You all should read it if you’re a bank investor. There have been big moves.

And one of the pages from the screen is here for you to look at:

Below the paywall is people most likely to raise to bring their concentrations back into line. This rally means everyone feels better about diluting as almost everyone has climbed above book value.

But for investors these high CRE banks are more than likely chomping at the bit to raise and get regulators off their back. Keep in mind some of these people have already raised (MBIN) and some have sold (IBTX), so you have to use your brain a little bit.

But in a world where you’re looking to reduce net exposure, these people will likely be a gift.

Enjoy & feel free to chat me with specific questions. I am very responsive to premium members.