NEW YORK (TheStreet) -- Regional bank stocks sold off sharply Monday, while shares of larger banks were down by a smaller margin.
The trend was visible in the SPDR KBW Regional Banking ETF (KRE), which was down by 3.88% to $21.79 shortly before Monday's close, compared to a drop of 1.64% for the SPDR KBW Bank ETF (KBE), which focuses on the largest U.S. banks.
The $351 million M&T will pay is roughly equal to Wilmington's tangible book value. The low price sent shares of Wilmington down 42.05% to $4.12. M&T, meanwhile, saw its shares rise 3.4% to $77.29.In a presentation Monday, M&T described "through the cycle" losses of 40% on Wilmington's portfolio of construction loans. Schiraldi says those estimates caused investors to put pressure on shares of bank stocks like Fulton Financial Corp. (FULT) and Susquehanna Bancshares (SUSQ) which have construction loan portfolios in the same region. Fulton's shares were down 5.67%, to $8.81, and Susquehanna's were down 6.42% to $7.40. "People try and look at who might have exposure in the Maryland/Virginia/Delaware area and maybe look to hit those guys today just because of the marks in the presentation M&T put out," Schiraldi says. The largest banks, meanwhile, did not fare quite so badly. Shares of Wells Fargo (WFC) were down by 1.63% to $25.64, Bank of America (BAC)shares dropped 0.43% to $11.40 and Citigroup (C) fell 1.44% to $4.11. -- Written by Dan Freed in New York.
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