Financial Sector Update for 07/17/2017: EQBK,EPAY,ABDC

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Financial stocks were trimming narrow declines from earlier Monday, with the NYSE Financial Sector Index falling nearly 0.1% while financial companies in the S&P 500 Index were sinking almost 0.2%.

In company news, Equity Bancshares ( EQBK ) was holding on to a solid gain this afternoon, with shares of the bank holding company jumping out as much as 6.3% higher to a session high of $33.56 each after announcing plans today to merge with a pair of privately held bank companies in Oklahoma, Eastman National Bancshares and Cache Holdings.

Under terms of the proposed transaction with Eastman, Equity will issue nearly 1.5 million of its shares to the parent company of Eastman National Bank, valuing the deal at around $46.6 million based on Equity's closing price on Friday. Equity expects the acquisition, slated to close before the end of the year, will increase its per-share net income by about $0.20 during 2018 and by $0.21 per share in 2019. Its tangible book value will likely fall about 3.2% at closing, Equity said.

Equity also will pay shareholders of Cache Holdings, the parent company of Patriot Bank of Tulsa, a combination of 53 shares of its common stock and $615.12 in cash for each share they now own, or about $50.5 million overall. It sees the buyout to boosting its 2018 net income by about $0.15 per share and by $0.16 per share in 2019. Tangible book value should be slip about 2.1% at closing, also expected by the end of 2017.

In other sector news,

(+) EPAY, (+3.3%) Raised to Outperform from Market Perform at Raymond James.

(-) ABDC, (-4.1%) Raymond James reduces investment recommendation to Outperform from Strong Buy, also establishing a $14 price target.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Banking and loans
Referenced Symbols: EQBK , EPAY , ABDC

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