The decline in Regional Bank stock prices following the closures of SVB Financial Corp (SIVB) and Signature Bank New York (SBNY) produced windfall profits for short sellers. The Spider S&P Regional Banking Sector ETF (KRE) was down -23% from 3/8 to 3/13 and regional banking shorts are up $3.53 billion in March month-to-date mark-to-market profits and up +$2.29 billion in mark-to-market profits over the last three days of trading.

Both SIVB and SBNY are in the top twenty most shorted stocks in the Regional Banking sector:

US Regional Bank Short Interest

Ticker

SI % Float

S3 SI % Float

Fee

Short Interest

PNC FINL SVCS

PNC

1.40%

1.38%

0.30%

$724,064,049

HUNTINGTON BANCSHARES

HBAN

3.62%

3.50%

0.30%

$574,513,621

REGIONS FINANCIAL CO

2.76%

2.68%

0.30%

$484,897,230

FIRST HORIZON NATL

FHN

5.67%

5.37%

0.30%

$480,795,760

TRUIST FINANCIAL CORP

TFC

1.08%

1.07%

0.30%

$462,012,418

FIFTH THIRD BANCORP

FITB

2.22%

2.17%

0.30%

$397,070,730

SVB FINANCIAL GRP

SIVB

5.50%

5.21%

5.31%

$343,169,723

CITIZENS FINL GROUP

CFG

2.16%

2.12%

0.31%

$318,930,567

M&T BANK CORP

MTB

1.28%

1.26%

0.30%

$271,807,194

BANK OZK

OZK

5.97%

5.63%

0.30%

$251,766,293

COLUMBIA BANKING SYS

COLB

5.86%

5.53%

0.30%

$244,350,803

KEYCORP

KEY

2.11%

2.06%

0.30%

$222,604,123

SIGNATURE BANK NY

SBNY

5.41%

5.14%

3.06%

$220,827,362

WEBSTER FINL CORP

WBS

3.33%

3.23%

0.30%

$215,434,676

FIRST FINL BKSHRS

FFIN

5.57%

5.27%

0.30%

$214,526,161

FIRST CITIZENS BANCSHS N CAR

FCNCA

3.29%

3.19%

0.30%

$195,128,707

CADENCE BANK

CADE

4.59%

4.39%

0.30%

$185,642,063

BANK OF HAWAII CORP

BOH

8.68%

7.99%

0.30%

$175,276,267

VALLEY NATL BANCORP

VLY

3.89%

3.74%

0.30%

$168,256,021

FIRST REP BANK/CA

FRC

2.93%

2.85%

3.31%

$166,311,942

We have seen increased short selling in the sector over the last seven days with $416 million of new short selling partially offsetting a $3.9 billion decline in the stock prices of shares shorted. We saw $12.9 million of net short selling in SIVB, and $12.5 million of net short covering in SBNY over the last seven days. Short sellers were limited by lack of stock borrow supply to settle any new short sales as well many short sellers were looking to exit their positions in advance of the trading halts in both those securities.

US Reg Bank Short Largest Increase in Shs Shorted

Ticker

SI % Float

Short Interest

7D Change Short Int

7D Change Shs Shorted

HUNTINGTON BANCSHARES

HBAN

3.62%

$574,513,621

($130,599,929)

$57,987,753

PNC FINL SVCS

PNC

1.40%

$724,064,049

($77,190,514)

$41,517,753

FIFTH THIRD BANCORP

FITB

2.22%

$397,070,730

($95,349,822)

$39,602,824

CITIZENS FINL GROUP

CFG

2.16%

$318,930,567

($81,402,946)

$17,968,532

VALLEY NATL BANCORP

VLY

3.89%

$168,256,021

($1,676,232)

$16,203,466

FIRST HORIZON NATL

FHN

5.67%

$480,795,760

($134,802,929)

$15,689,638

SVB FINANCIAL GRP

SIVB

5.50%

$343,169,723

($538,291,562)

$12,933,169

TEXAS CAP BANCSHS

TCBI

4.84%

$117,230,807

($18,170,765)

$12,274,680

BANKUNITED INC

BKU

7.32%

$136,035,822

($35,450,753)

$12,184,407

TRUIST FINANCIAL CORP

TFC

1.08%

$462,012,418

($183,276,798)

$11,121,124

COMERICA INC

CMA

2.49%

$138,284,735

($68,696,704)

$10,952,987

COMMERCE BANCSHS

CBSH

1.86%

$131,948,816

($2,618,082)

$10,597,390

CVB FINANCIALL CORP

CVBF

3.62%

$91,130,347

($14,969,710)

$10,247,497

FIRST REP BANK/CA

FRC

2.93%

$166,311,942

($444,507,784)

$10,141,846

CADENCE BANK

CADE

4.59%

$185,642,063

($21,663,847)

$10,100,123

GLACIER BANCORP INC

GBCI

2.58%

$112,904,282

($6,763,071)

$9,587,208

SEACOAST BNKG CORP FLA

SBCF

5.27%

$82,508,101

($18,740,590)

$9,368,792

BANK OZK

OZK

5.97%

$251,766,293

($44,590,698)

$9,267,910

META FINANCIAL GRP

CASH

7.75%

$87,660,179

($6,937,110)

$6,764,977

COMMUNITY BANK SYS

CBU

4.07%

$112,147,322

($6,030,923)

$6,641,911

US Reg Bank Largest Increase in Shs Covered

Ticker

SI % Float

Short Interest

7D Change Short Int

7D Change Shares Shorted

SIGNATURE BANK NY

SBNY

5.41%

$220,827,362

($178,358,230)

($12,495,878)

M&T BANK CORP

MTB

1.28%

$271,807,194

($63,368,234)

($8,262,150)

FIRST CITIZENS BANCSHS N CAR

FCNCA

3.29%

$195,128,707

($47,374,730)

($8,071,545)

ASSOCIATED BANC-CORP

ASB

3.12%

$90,755,924

($24,587,937)

($7,716,895)

WEBSTER FINL CORP

WBS

3.33%

$215,434,676

($90,503,736)

($7,200,738)

HANCOCK WHITNEY CORP

HWC

2.62%

$88,499,112

($28,702,426)

($6,148,096)

COLUMBIA BANKING SYS

COLB

5.86%

$244,350,803

($97,508,394)

($5,801,954)

REGIONS FINANCIAL CO

2.76%

$484,897,230

($121,607,758)

($5,562,616)

KEYCORP

KEY

2.11%

$222,604,123

($140,158,529)

($4,847,061)

OLD NATL BANCORP

ONB

2.56%

$113,632,025

($17,096,464)

($2,672,298)

Total US Reg Bank Change in Shares Shorted

3.76%

$12,974,222,417

($3,921,086,112)

$416,530,150

Regional Banking short sellers are up $2.78 billion in year-to-date mark-to-market profits, up +16.06% on an average short interest of $17.33 billion. Six out of ten shorted stocks in the sector were profitable.

The most and least profitable shorts in the Regional Banking sector in 2023 are:

Most Profitable Regional Bank YTD MTM P\L

Ticker

Avg Short Interest

YTD MTM P\L

P\L %

SVB FINANCIAL GRP

SIVB

$660,312,497

$791,947,229

119.94%

SILVERGATE CAPITAL CORP

$129,238,091

$246,636,087

190.84%

FIRST REP BANK/CA

FRC

$554,258,145

$210,515,618

37.98%

SIGNATURE BANK NY

SBNY

$358,968,632

$155,799,042

43.40%

FIRST HORIZON NATL

FHN

$626,598,681

$136,210,351

21.74%

TRUIST FINANCIAL CORP

TFC

$616,559,183

$114,761,105

18.61%

PNC FINL SVCS

PNC

$775,416,866

$109,227,441

14.09%

HUNTINGTON BANCSHARES

HBAN

$685,781,430

$92,675,322

13.51%

FIFTH THIRD BANCORP

FITB

$466,767,457

$81,733,435

17.51%

REGIONS FINANCIAL CO

$579,587,618

$80,156,492

13.83%

CITIZENS FINL GROUP

CFG

$377,111,203

$72,746,253

19.29%

COLUMBIA BANKING SYS

COLB

$329,950,023

$69,940,440

21.20%

WESTERN ALLIANCE BANCORP

WAL

$175,084,997

$65,805,989

37.59%

BANK OZK

OZK

$286,304,056

$64,053,576

22.37%

PACWEST BANCORP

PACW

$95,172,691

$62,535,154

65.71%

WEBSTER FINL CORP

WBS

$286,410,967

$57,543,692

20.09%

KEYCORP

KEY

$345,593,624

$50,708,595

14.67%

M&T BANK CORP

MTB

$304,098,657

$48,284,075

15.88%

BANK OF HAWAII CORP

BOH

$241,229,372

$37,239,356

15.44%

FIRST CITIZENS BANCSHS N CAR

FCNCA

$216,711,964

$36,781,496

16.97%

Least Profitable Regional Bank YTD MTM P\L

Ticker

Avg Short Interest

YTD MTM P\L

P\L %

TRIUMPH BANCORP INC

TFIN

$111,757,739

($8,961,510)

-8.02%

META FINANCIAL GRP

CASH

$87,782,173

($3,977,433)

-4.53%

THE BANKCORP INC

TBBK

$58,708,576

($2,992,850)

-5.10%

TEXAS CAP BANCSHS

TCBI

$135,926,454

($1,712,305)

-1.26%

HILLTOP HOLDINGS

HTH

$62,905,201

($917,288)

-1.46%

Total Regional Bank YTD MTM P\L

$17,329,079,571

$2,783,823,907

16.06%

Regional Banking short sellers were especially profitable in March with $3.53 billion in mark-to-market profits, up +21.76% on an average short internet of $16.22 billion. 98% of every dollar shorted in the Regional Banking sector produced profitable returns and 80% of every shorted stock in the sector was a profitable short trade in March.

The most and least profitable Regional Banking shorts in March are:

Most Profitable Regional Bank March MTM P\L

Ticker

Avg Short Interest

March MTM P\L

P\L %

SVB FINANCIAL GRP

SIVB

$660,312,497

$791,947,229

119.94%

SILVERGATE CAPITAL CORP

$129,238,091

$246,636,087

190.84%

FIRST REP BANK/CA

FRC

$554,258,145

$210,515,618

37.98%

SIGNATURE BANK NY

SBNY

$358,968,632

$155,799,042

43.40%

FIRST HORIZON NATL

FHN

$626,598,681

$136,210,351

21.74%

TRUIST FINANCIAL CORP

TFC

$616,559,183

$114,761,105

18.61%

PNC FINL SVCS

PNC

$775,416,866

$109,227,441

14.09%

HUNTINGTON BANCSHARES

HBAN

$685,781,430

$92,675,322

13.51%

FIFTH THIRD BANCORP

FITB

$466,767,457

$81,733,435

17.51%

REGIONS FINANCIAL CO

$579,587,618

$80,156,492

13.83%

CITIZENS FINL GROUP

CFG

$377,111,203

$72,746,253

19.29%

COLUMBIA BANKING SYS

COLB

$329,950,023

$69,940,440

21.20%

WESTERN ALLIANCE BANCORP

WAL

$175,084,997

$65,805,989

37.59%

BANK OZK

OZK

$286,304,056

$64,053,576

22.37%

PACWEST BANCORP

PACW

$95,172,691

$62,535,154

65.71%

WEBSTER FINL CORP

WBS

$286,410,967

$57,543,692

20.09%

KEYCORP

KEY

$345,593,624

$50,708,595

14.67%

M&T BANK CORP

MTB

$304,098,657

$48,284,075

15.88%

BANK OF HAWAII CORP

BOH

$241,229,372

$37,239,356

15.44%

FIRST CITIZENS BANCSHS N CAR

FCNCA

$216,711,964

$36,781,496

16.97%

Least Profitable Regional Bank March MTM P\L

Ticker

Avg Short Interest

March MTM P\L

P\L %

HANOVER BANCORP INC/NY

HNVR

$689,921

($15,863)

-2.30%

C & F FINANCIAL CORP

CFFI

$431,630

($3,689)

-0.85%

VILLAGE BANK AND TRUST FINAN

VBFC

$65,540

($2,169)

-3.31%

CITIZENS BANCSHARES CORP

CZBS

$29,487

($1,989)

-6.74%

OHIO VALLEY BANC CORP

OVBC

$263,656

($1,566)

-0.59%

Total Regional Bank March MTM P\L

$16,219,854,837

$3,529,811,558

21.76%

Most of March’s profits occurred from 3/8 to 3/13 with $2.29 billion of three-day mark-to-market profits, up +15.48% on an average short interest of $14.80 billion. 98% of every dollar shorted in the Regional Banking sector over these three days were profitable shorts and 81% of every stock was a profitable short trade.

The most and least profitable Regional Banking shorts from 3/8 to 3/13 are:

Most Profitable Regional Bank 3/8 to 3/13 MTM P\L

Ticker

Avg Short Interest

MTM P\L

P\L %

SVB FINANCIAL GRP

SIVB

$315,240,989

$728,526,758

231.10%

FIRST REP BANK/CA

FRC

$473,319,948

$170,344,340

35.99%

SIGNATURE BANK NY

SBNY

$277,105,231

$113,930,948

41.11%

TRUIST FINANCIAL CORP

TFC

$576,878,407

$70,300,705

12.19%

WESTERN ALLIANCE BANCORP

WAL

$151,804,166

$58,524,377

38.55%

PACWEST BANCORP

PACW

$68,400,089

$58,232,893

85.14%

SILVERGATE CAPITAL CORP

$70,484,841

$54,736,537

77.66%

HUNTINGTON BANCSHARES

HBAN

$676,181,791

$51,860,031

7.67%

FIFTH THIRD BANCORP

FITB

$449,847,279

$45,959,189

10.22%

PNC FINL SVCS

PNC

$743,553,524

$42,361,640

5.70%

COLUMBIA BANKING SYS

COLB

$295,986,267

$41,089,058

13.88%

REGIONS FINANCIAL CO

$545,328,488

$39,150,961

7.18%

FIRST HORIZON NATL

FHN

$606,413,832

$36,522,190

6.02%

CITIZENS FINL GROUP

CFG

$353,194,012

$36,019,729

10.20%

WEBSTER FINL CORP

WBS

$251,960,287

$35,189,950

13.97%

KEYCORP

KEY

$309,921,241

$31,510,285

10.17%

BANK OF HAWAII CORP

BOH

$214,091,194

$30,676,547

14.33%

BANK OZK

OZK

$256,520,174

$29,698,979

11.58%

COMERICA INC

CMA

$193,661,899

$26,393,807

13.63%

EASTWEST BANCORP

EWBC

$144,213,490

$22,198,179

15.39%

Least Profitable Regional Bank 3/8 to 3/13 MTM P\L

Ticker

Avg Short Interest

MTM P\L

P\L %

NATL BANCSHS VA

NKSH

$1,513,580

($13,191)

-0.87%

HANOVER BANCORP INC/NY

HNVR

$679,902

($13,043)

-1.92%

CITIZENS HOLDING COMPANY

CIZN

$1,786,152

($5,802)

-0.32%

EAGLE BANCORP MONTANA INC

EBMT

$122,390

($940)

-0.77%

COASTAL SOUTH BANCSHARES INC

COSO

$1,725

($165)

-9.59%

Total Reg Bank 3/8 to 3/13 MTM P\L

$14,796,567,837

$2,290,887,556

15.48%

The Regional Banking sector is having a rebound rally after three days of stock price weakness with the KRE ETF up +6.9% in midday trading. We should see a wave of short covering in some of the Regional Banking stocks in response to this sudden spike in stock prices as short sellers look to realize some of their recent $2.29 billion of mark-to-market profits. When stock prices stabilize once again look for some of the shorts who trimmed or exited their positions to re-enter their fundamental based shorts, short selling at future higher stock prices to maximize potential Alpha.

SIVB and SBNY shorts are now facing close-out issues and the remaining shorts who did not exit their short positions prior to the halt in trading are sitting short, paying daily stock borrow financing rates. These short positions will stay open until the Nasdaq exchange and DTC determine these shares as delisted and worthless, providing for technical close outs of long and short positions or the short seller’s Prime Broker locates an OTC trade with a long shareholder. SIVB and SBNY short sellers are sitting massive mark-to-market profits but have no way to realize those profits at the moment.

The Black MaP and Black App products provide a total view of long and short positioning in the market with a breakdown between Active\Passive long investors, 24 Fund type entities, over 50k securities globally across 108 countries and data from 58 regulatory exchanges.

Regional Banking Shorts up $3.5BN in March

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