Great Southern (GSBC) saw its stock price plummet by 7.60% during Thursday's trading session, as regional bank stocks faced a significant sell-off. The decline was part of a broader trend affecting the banking sector, primarily triggered by Zions Bancorp's disclosure of a $50 million loan loss.
The turmoil in the regional banking sector intensified after Zions Bancorp announced it would take a $60 million provision for credit losses in its upcoming third-quarter results. This news sent shockwaves through the industry, causing the SPDR S&P Regional Banking ETF to fall by 4.6%, marking its most substantial decline since April.
Great Southern's sharp drop aligns with the performance of other regional banks, as investors grew increasingly cautious about potential credit risks in the sector. The situation was exacerbated by recent comments from JPMorgan Chase CEO Jamie Dimon, who warned about credit market conditions, stating, "when you see one cockroach, there are probably more." This statement, coupled with Zions' disclosure, has heightened concerns about the overall health of loan portfolios across regional banks.