Shares of several U.S. regional banks fell sharply Thursday after new disclosures of rising loan losses and credit issues across the sector. Zions Bancorporation ($ZION) dropped as much as 13% following a $50 million charge-off tied to a California Bank & Trust loan, while Western Alliance Bancorporation ($WAL) slid 11% after revealing a collateral dispute with a borrower and exposure to the collapse of First Brands Group.
- Zions reported a $50 million charge-off related to a single borrower at its California Bank & Trust division.
- Western Alliance cited credit issues tied to a borrower and fallout from First Brands Group’s bankruptcy, but said its 2025 outlook remains unchanged.
- The developments come as major lenders including JPMorgan Chase & Co. ($JPM) and Fifth Third Bancorp ($FITB) recently reported rising loan losses linked to Tricolor Holdings’ collapse.
- Regional bank stocks have been under renewed pressure amid credit quality concerns and tighter financing conditions across the sector.
Relevant Companies
- Zions Bancorporation ($ZION) — Disclosed a $50M loan charge-off at its California Bank & Trust unit.
- Western Alliance Bancorporation ($WAL) — Reported borrower collateral issues and exposure to First Brands Group’s collapse.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
