Insiders at Small & Mid-Size Banks Show ‘Long-Term Confidence’, Buying Shares

Excerpt from Bloomberg Article

More bank insiders are buying shares in their own companies, a vote of confidence in the industry after a crisis sparked by the collapse of four regional lenders earlier this year.

The number of buyers has already jumped to 778 in the second quarter through May 26 from 524 in the first three months of the year, according to research firm VerityData, which said the surge is being driven by small and midsize banks. More purchasers stepped up even as share prices sank to multiyear lows in early May.

“Insiders in this group are expressing a strong belief that the regional-banking system as a whole is sound, that there’s not a danger of a wide-scale collapse,” Ben Silverman, director of research at VerityData, said in an interview. “This signifies long-term confidence in these banks’ ability to weather whatever near-term storm there might be.”