Last night, solid bank earnings eased fears of bad debts, with executives stating that 'credit quality is stable.' Several U.S. banks released their Q3 results last night, showing loan loss provisions below analyst expectations. Executives also tried to reassure shaken investors, leading to a rise in regional bank stocks and a market rebound. 1) $Fifth Third Bank (http://FITB.US)$, which previously disclosed business ties with Tricolor, reported loan loss provisions of $197 million last quarter, lower than analysts' forecast of $239 million. 2) Regional bank Truist Financial (http://TFC.US) Corp. reported Q3 loan loss provisions of $436 million, down 2.7% year-over-year and below market expectations of $484.9 million. Net charge-offs were $385 million, significantly lower than analysts' estimate of $450.6 million. 3) $Huntington Bank (http://HBAN.US)$ Inc. stated that its net charge-offs were $75 million, down 19% year-over-year and below analysts' forecast of $87.4 million. Loan loss provisions were $122 million, slightly above market expectations of $106 million but still manageable. 4) Auto loan lender Ally Financial (http://ALLY.US)$ Inc. released its earnings last night, reporting loan loss provisions of $415 million, below analysts' expectations of $455 million. Given Tricolor's high-profile bankruptcy last month, its performance drew extra attention. 5) $Regions Financial (http://RF.US)$ Corp. also reported loan provisions below expectations. The earnings reports from these regional banks demonstrated stable credit conditions. As discussed last night, if bank earnings show no issues with credit, it indicates that credit problems are limited to a very small number of banks and have not spread widely. Market panic has significantly eased.