Cockroaches In The Vault? 3 Regional Banks Quality Scores Scurry Lower After Jamie Dimon's Warning

Three regional banks, once perched among the sector's strongest, have seen their quality rankings collapse into the bottom decile, just days after JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon warned of "cockroaches" lurking in U.S. credit markets.

3 Banking Stocks Creep From Vault To Crawlspace

According to the latest Benzinga Edge Stock Rankings‘ quality percentile report, Old National Bancorp‘s (NASDAQ:ONB) quality score plunged from 40.03 to 6.34, Atlantic Union Bankshares Corp.‘s (NYSE:AUB) from 74.82 to 5.41, and Community Financial System Inc.’s (NYSE:CBU) from 85.96 to 9.37, all now firmly in the bottom 10th percentile.

The metric, which evaluates operational efficiency, profitability consistency, and balance sheet strength on a percentile basis, signals a sharp deterioration in fundamental health.

Jamie Dimon Sees ‘Cockroaches’ In Banks

The timing is ominous. Dimon, during JPMorgan's earnings call, cited bankruptcies at subprime lender Tricolor Holdings and auto supplier First Brands—under criminal probe—as evidence that "when you see one cockroach, there are probably more."

His remarks preceded a brutal sell-off in regional banks and the SPDR S&P Regional Banking ETF (NYSE:KRE).

Zions Bancorporation NA (NASDAQ:ZION) disclosed a $50 million charge-off tied to two troubled California loans, while Western Alliance Bancorp (NYSE:WAL) filed a fraud lawsuit against a borrower—fueling contagion fears.

See Also: McDonald’s Rival Wendy’s Hits Bottom Bun — Quality Fizzles Despite Juicy Dividend

What Do Other Rankings Say About These 3 Stocks?

Old National

• About 3.73% lower on a year-to-date basis, ONB was up 6.59% over the year.

• It maintained a weaker price trend over short, medium, and long terms, with a strong growth ranking. Additional performance details, as per Benzinga’s Edge Stock Rankings, are available here.

Atlantic Union Bankshares

• AUB dropped 9.61% YTD and 12.34% over the year.

• It maintained a weaker price trend over the short, medium, and long terms, as per Benzinga’s Edge Stock Rankings, with a robust growth ranking. Additional performance details are available here.

Community Financial System

• Down by 6.07% YTD, the stock also declined by 5.50% over the year.

• Benzinga’s Edge Stock Rankings indicate that CBU maintains a weak price trend over the short, medium, and long terms, with a moderate growth ranking. Additional performance details are available here.

Price Action

On Wednesday, the futures of the S&P 500, Dow Jones, and Nasdaq 100 indices were mixed.

Meanwhile, on Tuesday, the S&P 500 index ended 0.23% higher at 6,890.89, whereas the Nasdaq 100 index rose 0.74% to 26,012.16. On the other hand, Dow Jones advanced 0.34% to end at 47,706.37.

Read Next:

• American Express Quality Improves Following Upbeat Earnings, Analyst Upgrades

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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