Stocks of big banks vs. stocks of regional banks: a price chart analysis

The difference between the recent rate performance of a major New York City banking institution and that of most regional banks is quite staggering. JP Morgan clearly benefits from being huge and a brand when it comes to the financial sector.

In the aftermath of the Silicon Valley bank crash, tremors have rocked the banking industry, and the question remains as to how much or if companies can recover their lost earnings. This is the allure of examining how their stocks traded before and after. The Beast directed by Jamie Dimon looks good, everything else seems problematic.

Bank stock price charts:

Here is the daily price chart for the SPDR Standard Select Financial Sector Fund:

From the February high of $36.75 to the March low of $30.25 and now back to $33.59. So, we’re back about halfway into the Silicon Valley bank effect – and now it’s above the 50-day and 200-day moving averages.

Here’s what the JP Morgan daily price chart looks like now:

The sell-off in March during concern about a Silicon Valley bank failure was evident: the slide from the February high of $142 to the March low of $122 represented a rapid decline of 14%. JP Morgan has stabilized and returned to the $142 level in early May.

In late June and early July, the big bank broke through this resistance level: you can see how the dotted red line connecting the February high and the May high is being thrown out by buying in the middle of summer. Investors love this particular bank stock.

Compare the above to Bank of America
Daily rate chart:

The other monster NYC bank has nowhere near the buying power shown on the JP Morgan chart. Bank of America has barely recovered from the dramatic sell-off in March: the stock hit $26 in late March and now goes as low as $28.53. It’s not even halfway to the early February high of $36.50.

For whatever reason, it’s basically the same pattern with regional banks. Take a look at the daily price chart for the S&P SPDR Regional Banking ETF:

From the early February high of $64 to the early May low of $34 represented a loss of 47% in a short period of time. It’s fine to recover an ETF from reserves up to $41.47, but compare it to a JP Morgan recovery: it’s not even close.

Here’s the daily rate chart for a well-known regional bank, Zion Bancorp

The Salt Lake City-based territory received a lot of success during the SVB
Disaster: from the February high near $54 all the way to $18 in early May. It has since recovered and is now trading for $28.98, but it still has a long way to go to reach a new high.

Most regional bank stocks have the same look: a bounce off the lows but nothing to write home about.