US banks walk a tightrope as investors weigh earnings against credit jitters

U.S. banks' earnings spark mixed reactions, as scrutiny of the sector deepens due to worries over credit stress

Shares of Truist Financial TFC.N and Regions Financial RF.N climb 3.8% and 1.3% in premarket trading, respectively, after reporting higher profit in Q3

Fifth Third Bancorp FITB.O gains 2.8% after a jump in quarterly profit

However, Bank OZK OZK.O slides 6.4% after falling short of Q3 profit estimates, while Pennsylvania-based FNB FNB.N drops 4% on slower loan growth

The banking industry, mainly regional lenders that are a lifeline for U.S. small business credit, is back in focus as credit fears mount

Worries about exposure to the recent bankruptcies at auto parts maker First Brands and subprime lender Tricolor have rattled confidence

The S&P 500 banks index .SPXBK and the KBW regional banking index .KRX 3% and 6.3%, respectively, on Thursday