S&P shifts outlooks on five U.S. banks

S&P said it revised the outlooks on five regional U.S. banks to negative from stable, citing their exposure to the challenging U.S. commercial real estate market.

The banks are First Commonwealth Financial Corp., M&T Bank Corp., Synovus Financial Corp., Trustmark Corp. and Valley National Bancorp.

“The negative outlook revisions reflect the possibility that stress in CRE markets may hurt the asset quality and performance of the five banks, which have some of the highest exposures to CRE loans among banks we rate. CRE loans–defined here as loans on investor-owned CRE, multifamily, and construction and development properties–made up between roughly 25% and 55% of the loans of each of these banks at year-end 2023, and well exceeded their tier 1 capital, in some cases by several multiples,” the agency said in a press release.

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