Insiders of bank stocks have absolutely taken advantage of the recent volatility in the industry following the downfall of SVB Financial Group (NASDAQ:SIVB) subsidiary Silicon Valley Bank. The collapse of the bank marked the second-largest of its kind in U.S. history and the largest since Washington Mutual in 2008.
The Federal Reserve, Federal Deposit Insurance Corporation (FDIC) and the Treasury Department had previously announced that they would protect all deposits in Silicon Valley Bank, even above the $250,000 limit, which may have added to the confidence and conviction of other bank insiders. This morning, SVB Financial also announced that it has filed for Chapter 11 bankruptcy protection. Silicon Valley Bank, N.A — which is the newly created entity by the FDIC — operates independently from SVB and will not be affected by the filing.
With that in mind, let’s take a look at the bank stocks that insiders have been buying.
Insiders Are Doubling Down on These 8 Bank Stocks
- SoFi (NASDAQ:SOFI): On March 10, CEO Anthony Noto disclosed purchasing 180,000 shares worth just under $1 million. Six days later, he picked up another 45,000 shares worth just under $250,000.
- Charles Schwab (NYSE:SCHW): Insiders have lined up to purchase SCHW stock following the failure of Silicon Valley Bank. Since March 14, insiders have purchased 115,144 shares with a combined value of $6.73 million. These insiders include CEO Walter Bettinger, Chief Financial Officer Peter Crawford and Director Mark Goldfarb.
- PacWest Bancorp (NASDAQ:PACW): Since March 9, insiders — including Executive Chairman Matthew Wagner and President and CEO Paul Taylor — have purchased a total of 95,993 shares.
- First Foundation (NASDAQ:FFWM): CEO Scott Kavanaugh purchased 2,000 shares on March 14. On the same day, Chief Operating Officer Christopher Naghibi purchased 208 shares.
- Farmers National Banc (NASDAQ:FMNB): Since March 10, directors Neil Kaback and Andre Thornton have purchased a total of 5,185 shares.
- Bankwell Financial Group (NASDAQ:BWFG): Several directors of Bankwell have purchased shares this month. The largest purchase is attributable to Director James Garnett Jr., who purchased 29,639 shares on March 10, marking one of his many purchases.
- Flushing Financial (NASDAQ:FFIC): On March 15, Director Louis Grassi purchased 2,000 shares at an average price of $15.07 per share.
- MVB Financial (NASDAQ:MVBF): Directors Marston Becker and Jan Lynn Owen have purchased a total of 10,984 shares since March 8.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.