Top Financial Stocks
Financial stocks continued to build on moderate gains this afternoon, with the NYSE Financial Sector Index increasing nearly 0.9% lower while financial companies in the S&P 500 Index were advancing about 1.3%. The Philadelphia Housing Sector Index also was rising more than 1.0% in value today.
Among the financial stocks moving on news:
+ Sterling Bancorp ( STL ) was hanging on to a narrow gain Tuesday afternoon, easing from a more than 2% advance earlier in today's trading, that followed the bank holding company saying it has completed its acquisition of privately held Advantage Funding Management Co. Terms of the cash transaction for the commercial vehicle and transportation financing company were not disclosed. Sterling is expecting the deal, excluding the impact of accretion income on acquired loans, will increase its loan yield, net interest margin and per-share earnings over current levels and also generating an internal rate of return of more than 25%. Most executives and support personnel at Advantage Funding are expected to remain with the combined companies.
In other sector news:
+ Transcontinental Realty Investors ( TCI ) rose as much as 3.5% on Tuesday despite the real estate investment trust late Monday reporting an FY17 net loss of $1.92 per share, expanding on a $0.10 per share net loss during the prior year. Revenue rose to $125.2 million from $118.4 million last year. Analyst estimates were not available for comparison.
+ Commerce Bancshares ( CBSH ) climbed slightly more than 1% on Tuesday after saying chief operating officer John Kemper will move up to become chief executive of the regional bank company on August 1. He will take over from his father, David Kemper, who will remain active at Commerce Bancshares as its executive board chairman. The younger Kemper began at the bank in 2007 and was named COO almost five years ago.
+ Franklin Financial Network ( FSB ) was almost 1% higher during Tuesday trading after Monday night completing its purchase of Civic Bank & Trust more than two years after announcing the deal. The Kentucky-based bank companies first proposed the transaction in December 2015 although Franklin waited until last November before formally seeking permission for the deal from the Federal Reserve and other regulators. Civic shareholders received 0.3686 of a Franklin share for each of their Civic shares under terms of the acquisition, acquiring a 6.8% stake in the combined banks.