The Next Shoe That Might Not Drop for Banks.

The Next Shoe That Might Not Drop for Banks. Plus More Heart Mail...

(This originally ran at Empire Financial Research.)

Now that the big banks have started reporting earnings, the news has been better than expected...

The big question is whether regional banks – you know, the smaller banks in your hometown – are where the bad news will be buried.

The general thought is that after the Silicon Valley Bank ("SVB") debacle, deposits have likely been fleeing to the larger, perceived-to-be-safer big banks... especially from commercial customers.

And based on commentary from JPMorgan Chase (JPM), Citigroup (C), and Wells Fargo (WFC) on their earnings calls last week, some of this shift could have started.

But there's more to that story, and it's summed up in a tweet from Brad Safalow of PAA Research...