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Friday's Bank Stocks: Industry underperforms at end of Trump's first week


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Friday's Bank Stocks: Industry underperforms at end of Trump's first week

The broader markets ended mixed in trading Jan. 27 as bank stocks lagged, flattening out a week of trading that saw President Donald Trump's first days in the White House.

The Dow Jones Industrial Average declined 0.04% to 20,093.78, the S&P 500 fell 0.09% to 2,294.69 and the Nasdaq composite index added 0.10% to 5,660.78.

Doug Roberts, chief investment officer at Channel Capital Research, said the market is likely being pushed by short term traders making "noise" as other investors step back and continue to observe conditions. Those short-term traders, he said, are largely contributing to volatility as they trade on policy hints, comments and tweets from the new president.

"All of the sudden he says something, and people tend to talk about it," Roberts said.

All in all, Roberts said markets are still just as volatile as they were before the election, noting that long-term traders may have "calmed down a little bit" as rumors of Trump's policies start to reach legislative reality.

Financials were mixed today, as the SNL U.S. Bank Index slipped 0.52% to 539.06 but the SNL U.S. Thrift Index added 0.24% to 950.61.

JPMorgan Chase & Co. rose 0.21% to $86.93, Citigroup Inc. fell 0.44% to $57.11, Bank of America Corp. slipped 0.34% to $23.36 and Wells Fargo & Co. lost 1.03% to $56.59.

In notable movers, Ottawa, Ill.-based Centrue Financial Corp. soared 10.97% to $25.50 following a Jan. 26 announcement that Effingham, Ill.-based Midland States Bancorp Inc. would acquire the bank in a deal valued at approximately $175.1 million. Ellicott City, Md.-based Howard Bancorp Inc. surged 8.12% to $16.65 after announcing it would expand the public offering of its common stock from $30 million to $36 million in expected gross proceeds. Fort Lauderdale, Fla.-based OptimumBank Holdings Inc., meanwhile, fell 6.51% to $3.97.

Wayzata, Minn.-based TCF Financial Corp. dropped 7.52% to $17.72 after it announced in a conference call that it is pulling back from its auto loan securitization operations due to weaker profitability.

Short Hills, N.J.-based Investors Bancorp Inc. added 2.55% to $14.46 after it clarified in a fourth-quarter 2016 call that it was working on fixing Bank Secrecy Act program compliance issues that derailed its deal with Bank of Princeton.

Kalispell, Mont.-based Glacier Bancorp Inc. rose 0.75% to $36.09 after a very different M&A story in its fourth-quarter 2016 call, in which it acknowledged that it was slowing down its "M&A pipeline" as it approaches the $10 billion regulatory threshold.

Lafayette, La.-based IBERIABANK Corp. added 0.18% to $83.40 after it noted in its fourth-quarter 2016 earnings call that it is trying to strategize the best way to deploy $280 million in net proceeds from its December 2016 capital raise.

In thrifts, New York Community Bancorp Inc. gained 0.40% to $15.19.

Market prices and index values are current as of the time of publication and are subject to change.