Unfortunately for its shareholders the Bendigo and Adelaide Bank Ltd (ASX: BEN) share price has been one of the worst performing blue chips on the market today.
In late trade the regional bank's shares are down almost 5% to $11.37.
Why are its shares lower?
The regional bank held its annual general meeting today and I think it's fair to say that the market hasn't been too impressed with what its managing director had to say at the event.
Managing director Mike Hirst told the bank's shareholders that "macroprudential actions from APRA have forced banks, including ours, to slam on the brakes in investor and interest only lending."
While Mr Hirst deems this action to be necessary, it has interrupted the bank's growth momentum. As a result, he expects total balance sheet growth to be relatively flat in the first half of FY 2018.
Should you buy the dip?
While I think that Bendigo and Adelaide Bank's shares look quite reasonable at 13x trailing earnings and just over 1x book value, I would hold off an investment until after its half-year results are announced next year.
I am concerned that FY 2018 could be a flat year for the bank and would suggest investors hold out to see if the situation improves.
If its outlook for growth improves in the second-half then it could be a good option for investors, but until then, like Westpac Banking Corp (ASX: WBC) and Australia and New Zealand Banking Group (ASX: ANZ), I would class it as a hold.
