Bank stocks fell Tuesday as investors continued to cash in gains from the summer's rallies.
The KBW Bank Index lost 0.33%, after rising 1.39% on Friday. However, the index ended last week down 4.8%.
Raymond James & Associates analyst Anthony Polini wrote in a note that his team remains bullish on the industry's "absolute and relative investment appeal" but for now expects profit-taking to continue.
"Last week's price pullback represented only the second time in the past seven weeks that the bank stocks lost ground," Polini wrote. "However, the completion of the shared national credits exam could elevate credit concerns, as we expect regulators to take a hard-line approach to reserve builds and loan ratings."
Decliners included Bank of America Corp., off 0.4%; PNC Financial Services Group Inc., 0.6%; U.S. Bancorp, 2.1%; SunTrust Banks Inc., 0.5%; KeyCorp, 0.8%, and Citigroup Inc., 17 cents a share, to $4.68.
Gainers included JPMorgan Chase & Co., up 0.5%; Wells Fargo & Co., 0.3%; Capital One Financial Corp., 0.6%; BB&T Corp., 0.04%, and M&T Bank Corp., 0.4%.
UCBH Holdings Inc.'s shares fell 17 cents, to $1.02, after the San Francisco company said that Thomas S. Wu had resigned as chairman and chief executive to be temporarily replaced by Doreen Woo Ho, who was named acting president and CEO. Chief operating officer and former chief credit officer Ebrahim Shabudin also resigned, but a successor was not named. UCBH also said it had entered into a cease-and-desist order with the Federal Deposit Insurance Corp. and the California Department of Financial Institutions and that a subcommittee of its board's audit committee had completed an investigation and concluded that "certain bank officers" had inappropriately modified loan terms to "delay negative consequences," among other things.
The Dow Jones industrial average rose 0.59%, and the Standard & Poor's 500 index 0.88%.
