Top Financial Stocks
Financial stocks were ending mostly lower with the NYSE
Financial Sector Index sinking 0.6% while the S&P Financial 100
Index also was down less than 0.6%.
In company news, shares of Southern National Bancorp of Virginia
) were swinging between small gains and losses Wednesday afternoon,
unable to find firm footing in sporatic trade after the bank
holding company today announced a deal to acquire a minority stake
in a regional mortgage lender.
Financial terms of the management-led buyout transferring a 62%
ownership stake in Southern Trust Mortgage from its current owner,
Middleburg Financial Corp. (
), were not immediately disclosed.
Southern Mortgage currently operates six locations in its home
state of Virginia in addition to seven other branches in North
Carolina, South Carolina and Maryland, according to the company's
website. It also is licensed to conduct residential financing in
Delaware, Florida, Georgia, Tennessee, West Virginia and
Joining SONA in the deal are Eastern Virginia Bankshares (
) and Southern Trust founder Jerry Flowers. Once the deal closes,
Flowers will own 51.1% of the company while SONA will have a 44%
stake and EVBS receiving the remaining 4.9% interest. MBRG has been
a significant shareholder in Southern Trust since 2003, initially
acquiring a 40% stake.
SONA shares were ahead 0.5% at $10.13 each in light afternoon
trade, moving between a session low of $10.05 to a high of $10.19 a
share, up 1.1%. MBRG was down 0.9% at $17.61 in recent trading
while EVBS was off 0.8% at $6.18 a share.
In other sector news,
(+) FII, Regulators are ready to exempt most retail funds from
new rules calling on money-market funds to report floating net
asset values from the current practice of a fixed $1 per share NAV,
according to the Wall Street Journal.
(-) GCA, Said its contract with Caesars Entertainment (
) to supply automated teller machine, point-of-sale and credit card
services will expire without renewal March 31. Reaffirms in-line
FY14 cash earnings of $0.82 to $0.87 per share.
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