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Financial Sector Update for 02/21/2017: FCH,AHT,FBRC,RILY,UIHC

Top Financial Stocks

JPM +0.75%

BAC +1.00%

WFC +0.43%

C +0.61%

USB +0.59%

Financial stocks held on moderate gains this afternoon, with the NYSE Financial Sector Index rising about 0.4% while financial companies in the S&P 500 Index were posting a nearly 0.5% increase.

In company news, FelCor Lodging Trust ( FCH ) advanced Tuesday after the real estate investment trust today confirmed receiving a $1.28 billion, unsolicited buyout proposal from Ashford Hospitality Trust ( AHT ).

FelCor said it decide to go public with the offer following several months of discussions with Ashford, although those talks have been unable to strike a deal with "mutually agreeable terms." It also said it will continue to review the Ashford bid, adding there can be no guarantee that a deal will be reached.

Separately, Ashford has nominated a slate of seven independent directors for the FelCor board at the upcoming annual shareholders' meeting. Ashford currently owns about 4.5% of FelCor's outstanding stock.

FCH shares were up more than 10% at $7.99 apiece, previously climbing to a session high of $8.17 a share. AHT shares were down nearly 1% at $7.59 each, staying with 8 cents of today's session low.

In other sector news,

(+) FBRC, Agrees to $160.1 mln buyout offer from B. Riley Financial ( RILY ), which will swap 0.671 of its share for each FBRC share plus a pre-closing cash dividend of $8.50 per share. Deal values FBRC shares at $20.28 apiece, a 21.4% premium over Friday's closing price.

(-) UIHC, Reports Q4 net loss of $0.49 per share, reversing a $0.64 per share profit during year-ago period and missing the $0.39 per share Capital IQ consensus. Net premiums earned rose 29.6% over the same quarter last year to $121.2 mln, beating the $112.72 mln consensus.

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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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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