When the first quarter reports about bank loans became available, there was a big surprise. The biggest banks in the country were losing market share to their smaller competitors.

In the 12-month period from March 2017 to March 2018, the four big universal banks grew their loan portfolios by 3.1 percent. Conversely, the 39 mid-cap regionals grew their loans by 15.7 percent, and 56 community banks grew their lending by 14.7 percent.

Savvy investors took notice. Through June 8, shares of the big universal banks fell 1.6 percent, while the mid-cap regional bank stocks were up 7.8 percent and the community banks stocks were up 12.1 percent.

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