10 Banks Battered by the Energy Slump — and One Bright Spot
March 9, 2016 7:30 AM
Investors have punished most energy lenders since oil prices began sliding more than a year ago. Despite a recent rally, stocks of publicly traded banks with at least 3.5% of loans tied to the energy sector have fallen by 18% since early 2015. The KBW Nasdaq bank index is down 13% over that time. Here is a look at the worst-performing energy lenders in the past year and one exception to the rule.
MidSouth Bancorp (down 55%)
The Lafayette, La., company's stock has been hit hard since oil prices began falling. Management has sought to assure investors everything is under control , although more than a fifth of MidSouth's loans are tied to the energy sector, based on data from SNL Financial, Factset and Thomson Financial.
Green Bancorp (down 32%)
More than 9% of the Houston lender's loans are tied to energy. Green, which went public in 2014, is rumored to be looking to sell itself after reportedly hiring Sandler O'Neill to help it review its strategic alternatives.
Texas Capital (down 30%)
The Dallas company was among five banks with energy ties to receive a negative outlook from Moody's in October. The others were Amarillo National Bank, BOK Financial, Cullen/Frost Bankers and Hancock Holding. Energy credits make up 10.2% of Texas Capital's total loans.
Independent Bank Group (down 26%)
Independent, based in McKinney, Texas, has argued that its home state is "much stronger, has greater diversity and is more resilient than in past energy downturns." About 5% of the company's loans are related to the energy sector.
Regions Financial (down 22%)
The Birmingham, Ala., company set aside $69 million in the fourth quarter to cover soured loans, up significantly from a year earlier, and warned in January that it expected more "volatility" in its commercial book due to falling oil and gas prices. Energy credits make up 3.9% of total loans.
Comerica (down 21%)
The Dallas company said in February that it expects to add up to $125 million to its loan-loss provision in the first quarter to account for the ongoing energy slump. Comerica previously said its reserves would rise by $75 million to $125 million over the full year. Nearly 8% of Comerica's loans are tied to the energy sector.
Cullen/Frost Bankers (down 20%)
Dick Evans, soon to retire as CEO of Cullen/Frost in San Antonio, has called the oil slump a "nonevent ." Energy credits are more than 15% of the company's total loans.
Hancock Holding (down 19%)
The Gulfport, Miss., company was among the banks that significantly increased loan-loss reserves during the fourth quarter because of issues in the energy sector. About a tenth of Hancock's loans are tied to energy.
Prosperity Bancshares (down 19%)
The Houston company, historically an aggressive acquirer, has been uncharacteristically quiet since oil prices began sliding. About 4% of its loans involve lending to the energy sector.
LegacyTexas (down 18%)
The Plano, Texas, company's allowance for loan losses has increased substantially in the past year. Energy credits make up 10.4% of its loan portfolio.
Triumph Bancorp (up 6%)
The Dallas company, which went public in late 2014, is living up to its name; Triumph is the only bank in this group that has a higher stock price now compared with a year ago. The company on Monday announced plans to buy a bank in Colorado.
