Name: Regional banks report mixed results
Uploaded: 2026-01-16T16:11:52+00:00
Duration: 171 s

Speakers

Leslie Picker — Chief Correspondent, CNBC

Summary

Leslie Picker reviews mixed regional bank earnings on Squawk on the Street. She highlights Regions' weak fee and NII guidance and Wells Fargo downgrade, PNC's strong capital markets and advisory fees, and M&T's NII miss and higher charge-offs. State Street shares slumped on higher technology expenses and lowered NII and fee guidance. Picker also discusses the bifurcation between capital-markets-levered regionals and plain-vanilla banks, plus the potential deregulation-driven consolidation theme.

Regional bank earnings are mixed, with stock reactions tied to fees, NII, and expenses.
Regions fell after weak fee and NII guidance and a Wells Fargo downgrade.
PNC outperformed on a 41% year-over-year surge in capital markets and advisory revenue.
M&T shares fell on an NII miss, light fee guidance, and higher charge-offs.
State Street slumped over 3% on higher technology expenses and lowered guidance.
Picker sees a bifurcation favoring capital-markets-levered regionals over plain-vanilla banks.
Deregulation could open regional bank consolidation, favoring potential takeover targets.

Ideas

Leslie Picker Chief Correspondent, CNBC 0:15

Regions weak guidance, Wells Fargo downgrade.

Regions shares are falling after results and a Wells Fargo downgrade. Guidance for fees and net interest income came in below expectations, and analyst Mike Mayo said it is not yet time for most plain-vanilla regional banks unless they are takeover targets or have extras. This leaves Regions unattractive without a clear takeover or capital-markets catalyst.

Leslie Picker Chief Correspondent, CNBC 0:41

PNC capital markets strength drives outperformance.

PNC is benefiting from its capital markets and advisory businesses, with those fees surging 41% year over year and mirroring strong activity at Goldman Sachs and Morgan Stanley. PNC shares are higher and the best-performing of the regional cohort, showing that capital-markets leverage can drive outperformance versus plain-vanilla banks.

Leslie Picker Chief Correspondent, CNBC 1:01

M&T weak NII, charge-offs rise.

M&T shares are lower after net interest income missed expectations. Fee revenue beat consensus in the quarter, but fee guidance came in light and net charge-offs rose from a year ago, pressuring the stock.

Leslie Picker Chief Correspondent, CNBC 1:20

State Street expenses, lower guidance hurt.

State Street shares are slumping more than 3% because expenses were greater than forecast due to technology spending, and management lowered net interest income and fee guidance. Investors are awaiting more color on the analyst call.

Leslie Picker Chief Correspondent, CNBC 1:58

Favor capital-markets-levered regionals over plain-vanilla.

Leslie Picker agrees with the read that regional banks are bifurcating: those with more leverage to capital markets, such as PNC and middle-market M&A advisory, are doing better, while those more levered to plain-vanilla banking are less attractive. The market is rewarding capital-markets exposure over traditional spread lending.

Leslie Picker Chief Correspondent, CNBC 1:58

Favor capital-markets-levered regionals over plain-vanilla.

Leslie Picker Chief Correspondent, CNBC 2:24

Takeover-target regional banks should outperform.

The potential deregulation benefit for regional banks is primarily the opening up of consolidation. Regional banks seen as potential takeover targets should do better than those that are less attractive in a consolidation push.

Regional banks report mixed results

Summary

Ideas

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