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Financial Sector Update for 01/22/2015: TCBI,CYN,RY,SLM

Top Financial Stocks

JPM +2.17%

BAC +2.81%

WFC +2.00%

C +2.93%

USB +1.90%

Financial stocks were broadly higher, with the NYSE Financial Sector Index rising nearly 1.2% and the S&P Financial 100 Index adding almost 1.6%.

In company news, Texas Capital BancShares Inc. ( TCBI ) slid to a 21-month low Thursday despite the bank holding company last night edging out analyst forecasts with its Q4 earnings.

During the three months ended Dec. 31, TCBI posted net income available to common shareholders of $35.4 million, or $0.78 per share, improving on a $27.9 million profit last year and beating the Capital IQ consensus by $0.01 per share.

Net interest income increased 14.4% over year-ago levels to $127.6 million but net interest margin fell 65 basis points from the same period last year to 3.56% due to rise in lending activity at lower yields as well as a substantial increase in liquidity assets.

The bank ended 2014 with a 24% rise to $9.3 billion in loans other than mortgage finance loans, also reporting a 30% increase in deposits over 2013 levels to $10.9 billion.

TCBI shares earlier fell to their lowest price since early May 2013 at $41.28 each, down more than 8%, and more recently trading nearly 6% lower at $42.47 a share. Over the past 12 months, the stock already had declined more than 25% prior to Thursday's retreat.

In other sector news,

(+) CYN, (+17.9%) Agrees to $5.4 bln buyout offer from Royal Bank of Canada ( RY ), which will pay $2.7 billion in cash and issue 44 mln of its shares. The deal values CYN at $93.80 a share, a 25.8% premium over Wednesday's closing price.

(-) SLM, (-7.0%) Reports Q4 net income of $20 mln, or $0.03 per share, down from $61 mln profit last year and missing Street view by $0.02 per share. Revenue rises 23.2% over year-ago levels to $150.67 mln, lagging estimates by $1.33 mln.

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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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