The higher-for-longer interest-rate environment weighed on banks during the quarter as one central theme this earnings season, banking-industry players told MarketWatch.
“Almost every bank is reporting smaller loan pipelines not just year over year, but quarter over quarter,” Coffey said in an email to MarketWatch. Also read: Jamie Dimon says it’s ‘the most dangerous time the world has seen in decades.’ Here are all the ripple effects. Regions Financial Corp. RF, +0.30% has fallen 13% in the past week, Comerica Inc. CMA, +0.90% is down about 9% and Zions Bancorp N.A. ZION, +2.09% has lost 15% of its value.
Commercial real estate makes up 11% of Huntington’s loan portfolio, while at other banks it is 20% or more, he said. Huntington’s office real estate accounts for about 1.6% of total loans.