---
title: "U.S. regional bank stocks plummet as Zions' credit issues trigger sell-off"
description: "U.S. regional bank stocks plummeted on Thursday due to escalating credit concerns. Zions Bancorp announced a provision for loan losses of $60 million and wrote off $50 million in bad debts, leading to"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/261506425.md"
published_at: "2025-10-16T20:50:30.000Z"
---

# U.S. regional bank stocks plummet as Zions' credit issues trigger sell-off

> U.S. regional bank stocks plummeted on Thursday due to escalating credit concerns. Zions Bancorp announced a provision for loan losses of $60 million and wrote off $50 million in bad debts, leading to a 6.3% drop in the KBW Regional Banking Index. Meanwhile, Western Alliance Bancorp's stock fell 11% due to a lawsuit filed by its borrower over fraud allegations. Zions' stock closed down 13%

The stock prices of regional banks in the United States plummeted on Thursday as credit concerns intensified, after Zions Bancorp announced it would set aside $60 million for loan provisions and write off $50 million in bad debts. The KBW Regional Banking Index fell 6.3%, marking its largest decline since April. At the time of Zions' announcement of the write-off, several banks and other lending institutions filed legal lawsuits regarding two commercial and industrial loans. Western Alliance Bancorp stated on Thursday that it had filed a lawsuit against a borrower in August, accusing them of fraud. Western Alliance Bancorp's stock price dropped 11%, while Zions fell 13%

### Related Stocks

- [WAL.US - Western Alliance Bancorp](https://longbridge.com/en/quote/WAL.US.md)
- [ZION.US - Zions Bancorp](https://longbridge.com/en/quote/ZION.US.md)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.