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Sector Update: Financial

Financial stocks were mostly lower with the NYSE Financial Sector Index sinking about 0.4% and the S&P Financial 100 Index down 0.3%.

In company news, Phoenix Bancorp ( PXBP ) was sharply higher Thursday after the bank holding company late yesterday agreed to accept a $14.5 million buyout offer from Mid Penn Bancorp ( MPB ).

Under terms of the transaction, PXBP shareholders have the option of receiving either $51.60 in cash or 3.167 MPB shares in exchange for each share they now own. Based on MPB's closing share price Wednesday, the deal values PXBP at around $51.86 a share, an 85.2% premium over its $28.00 closing price last night.

After the deal closes, PXBP shareholders are slated to own about 17% of the combined banks, which are projected to have around $875 million in consolidated assets on a pro forma basis.

MPB said it expects the deal will immediately add to its per-share earnings in addition to expanding its geographic footprint further into northeast Pennsylvania's anthracite coal-mining region.

PXBP shares were ahead 75% at $49.00 apiece in extremely light trade. MPB was up 1.4% at $16.10 a share in recent trade, easing slightly from its session high at $16.15 a share. The stock is within relatively close range of its best share price since May 2009 at $16.32 a share.

In other sector news,

(+) AVIV, (+2.6%) Selected to join S&P SmallCap 600 index, replacing Centene Corp ( CNC ).

(+) FBNC, (+0.1%) Announces plans to close 10 branches in North and South Carolina and in Virginia by Dec. 5, pending regulatory approvals, consolidating those operations with other nearby branches.

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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