Bank-Stock Buying Spree Continues as Insiders Make Purchases

Executives and directors have had their wallets out in the past several days. Insiders at

U.S. Bancorp

(USB), the fifth-largest publicly traded U.S. bank by total assets, according to Bankrate.com, reported more large stock purchases, following other recent transactions. Major regional bank

KeyCorp

(KEY), and smaller peers

Stellar Bancorp

(STEL) and

NBT Bancorp

(NBTB) also saw large buys. And the largest shareholder of Byline Bancorp (BY), less than a tenth of the size of KeyCorp by market capitalization, made another purchase.

U.S. Bancorp director Rick McKenney paid $607,320 on May 5 for 20,000 shares for a personal account at an average price of $30.37 each. According to a form McKenney filed with the Securities and Exchange Commission, it was his first open-market purchase. A U.S. Bancorp director since October 2017, McKenney’s day job is president and CEO of insurer

Unum Group

(UNM). Unum said McKenney wasn’t available to comment on his purchase of U.S. Bancorp stock.

U.S. Bancorp Vice Chair Jim Kelligrew paid $500,000 on Monday for 16,260 shares, an average price of $30.60 each. He now owns 151,927 shares in a personal account. Kelligrew, who heads corporate and commercial banking, joined the bank in 2009. It was his first open-market stock purchase on record. U.S. Bancorp didn’t respond to a request to make Kelligrew available for comment.

U.S. Bancorp stock slipped 17% in the first quarter, and so far in the second shares are down 18%.

KeyCorp stock dove 28% in the first quarter and 26% so far in the second. The Cleveland-based bank holding company has 971 branches, and a market capitalization of $9 billion.

Andrew “Randy” Paine, head of institutional banking, paid $733,500 on May 3 for 75,000 shares, an average price of $9.78 each. Paine now owns 335,414 KeyCorp shares in a personal account, and another 22,864 shares through a 401(k) plan. It was his first open-market purchase of KeyCorp stock since November 2016, when a partnership that he serves as general partner bought 445 shares for $6,250.

“This purchase puts Randy well above his shareholding requirements as an officer of the bank, and reflects his ongoing confidence in Key’s durable, relationship-based business model, and our ability to deliver for our clients and prospects throughout the economic cycle,” KeyCorp said in a statement.

Houston-based Stellar Bancorp was formed last year through the merger of Allegiance Bank and CommunityBank of Texas. It has 55 banking centers in Texas, and a market cap of about $1.2 billion. Stellar Bancorp stock is down 12% so far in the second quarter, after a loss of 16% in the first.

Two Stellar Bancorp directors who had joined the boards of the predecessor banks in 2007 just made large stock purchases. Joe Penland Sr. paid $1.7 million over May 2 and 3 for a total of 79,512 shares, an average price of $21.68 each. He bought 75,512 Stellar Bancorp shares through a personal account that now holds 561,376 shares, and acquired 4,000 shares through a foundation that now holds 227,170 shares. Penland was buying Stellar Bancorp stock in March, too, paying $269,400 for 10,000 shares, about $26.94 each on average.

John E. Williams Jr., another director, paid $1 million on May 3 for 45,000 Stellar Bancorp shares, an average price of $21.96 each. He now owns 1.3 million shares in a personal account.

Stellar Bancorp didn’t respond to a request to make Penland, founder of Quality Mat Company of Beaumont, Texas, and Williams, managing partner of Williams Hart Law Firm of Houston, available for comment.

NBT Bancorp’s market cap of $1.4 billion is about the same size as Stellar Bancorp’s. Based in Norwich, N.Y., NBT Bancorp’s NBT Bank subsidiary has 140 locations in the northeastern U.S. NBT Bancorp stock fell 22% in the first quarter

NBT Bancorp director Timothy Delaney paid $1.2 million on May 2 for 40,000 shares, an average price of $29.77 each. He now owns 76,535 NBT Bancorp shares. Delaney, president of Johnstown, N.Y.-based construction-services firm Wesson Group, last purchased NBT Bancorp stock on the open market more than a decade ago. In December 2012, he bought 5,000 shares for $95,300.

Delaney didn’t respond to a request for comment made to Wesson Group.

NBT Bancorp stock fell 22% in the first quarter. So far in the second, shares are holding up relatively well, with a loss of 4%.

Shares of tiny Byline Bancorp held up better in the first quarter than stock in any of the banks above, losing only 6%. So far in the second quarter, however, Byline Bancorp stock is down 20%. The Chicago-based lender, with a market cap of about $700 million, operates about 30 branches in the Chicago and Milwaukee areas.

Byline Bancorp director Antonio del Valle Perochena paid $914,400 on May 2 for 50,000 shares, an average price of $18.29 each. He purchased the shares through MBG Investors I, a limited partnership that now owns 11.7 million shares, and is Byline Bancorp’s largest shareholder with a stake of more than 31%. Del Valle Perochena serves MBG as general partner and possesses sole voting and investment power.

Del Valle Perochena was buying Byline Bancorp stock earlier this year through MBG, paying $3.3 million from January through March for 140,000 shares, an average price of $23.38 each. Del Valle Perochena serves as chairman of Kaluz S.A., the holding company for the Mexican piping and chemicals firm Mexichem, and other operations.

Byline Bancorp and Kaluz didn’t respond to a request to make Del Valle Perochena available for comment.

Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.

Write to Ed Lin at [email protected] and follow @BarronsEdLin.