Financial Sector Update for 08/03/2018: BOFI,AIG,CATM,MFA

Top Financial Stocks

JPM +0.76%

BAC +0.66%

WFC +1.03%

C +1.41%

USB +0.68%

Financial stocks put up solid gains this afternoon, with the NYSE Financial Sector Index was climbing just over 0.4% while shares of financial companies in the S&P 500 also were rising more than 0.5%. The Philadelphia Housing Index still was slipping less than 0.1%.

Among financial stocks moving on news:

+ BofI Holding ( BOFI ) was nearly 5% higher in late Friday trading, easing from a nearly 9% advance soon after today's opening bell that followed the bank holding company this morning saying it has signed a deposit purchase and assumption agreement to acquire about $3 billion in deposits from Nationwide Bank. The deal includes about $1 billion in checking, savings and money market accounts along with $2 billion in time deposit accounts. The companies expect to expect the complete the transaction during the final three months of the year, subject to receipt of all necessary regulatory approvals.

In other sector news:

+ Cardtronics ( CATM ) climbed to a 14-month high on Friday, rising also 35% to its best share price since June 2017 after reporting better-than-expected Q2 net income and revenue and also issuing an FY18 earnings outlook exceeding Wall Street estimates. Excluding one-time items, the automated consumer financial services company earned $0.61 per share on $341 million in revenue, topping the Capital IQ consensus by $0.22 per share and $17.7 million, respectively. It also sees non-GAAP FY18 EPS in a range of $1.70 to $1.85, exceeding the Street view by at least $0.11 per share.

- American Internation Group ( AIG ) fell over 5% on Friday after the insurance conglomerate reported a drop in its adjusted Q2 net income to $1.05 per share from $1.53 per share during the year-ago period and trailing the Capital IQ consensus expecting a non-GAAP profit of $1.21 per share for the three months ended June 30. Gross premiums written rose 4% year-over-over to $8.65 billion from $8.31 billion last year.

- MFA Financial ( MFA ) dropped nearly 5% at one point during Friday trading after the real estate investment trust priced a $389 public offering of 50 million shares of its common stock at $7.78 apiece, representing a 3.5% discount to Thursday's closing price. The company also issued an option to underwriters to buy up to 7.5 million additional shares and is expecting to use net proceeds for general working capital purposes and investing in residential mortgage-related assets as well as repaying debt obligations.

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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