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Midday Wednesday: New York Community, State Street fall after earnings releases


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Midday Wednesday: New York Community, State Street fall after earnings releases

Bank stocks traded higher as the Dow Jones Industrial Average surpassed 20,000 during morning trading Wednesday, Jan. 25.

Around midday, the Dow Jones Industrial Average increased 0.67% to reach 20,046.08, the Nasdaq composite index rose 0.72% to 5,641.40, and the S&P 500 advanced 0.59% to 2,293.37. The SNL U.S. Bank Index was up 1.40% to 536.74 while the SNL U.S. Thrift Index declined 0.46% to 945.78.

New York Community Bancorp Inc., State Street Corp., Huntington Bancshares Inc., and BankUnited Inc. are among banks that reported quarterly results earlier today.

New York Community Bank declined 6.75% to $15.05 around midday, after reporting fourth-quarter 2016 net income of $113.7 million, or 23 cents per share. President and CEO Joseph Ficalora said in the company's earnings release that a large deal is still the best path for the company to breach the $50 billion-asset mark after the termination of the company's merger with Astoria Financial Corp.

State Street lost 3.73% to $77.52, after reporting fourth-quarter 2016 GAAP net income available to common shareholders of $557 million, or $1.43 per share. The decline in stock price comes amid news that BlackRock Inc. is transferring more than $1 trillion in assets under custody and administration from State Street to JPMorgan Chase & Co.

Huntington Bancshares which reported fourth-quarter 2016 net income applicable to common shares of $193.4 million, or 18 cents per share — was up 2.68% to $13.60.

BankUnited gained 3.79% to $37.54 around noon, after reporting fourth-quarter 2016 net income of $63.3 million, or 59 cents per share. CEO Rajinder Singh said during the company's earnings call that the company is not interested in a bank acquisition until regulators change the asset threshold for determining systemically important financial institutions.

East West Bancorp Inc. is expected to report after market hours today. For Thursday, Jan. 26, SVB Financial Group is scheduled to report quarterly results after market hours.

On the M&A front, Muncie, Ind.-based First Merchants Corp. agreed to acquire Upper Arlington, Ohio-based Arlington Bank in a deal valued around $75.8 million. First Merchant climbed 2.19% to $37.26 around noon.

Banc of California Inc. saw its stock slide 3.82% to $15.10. A lawsuit was filed against the Irvine, Calif.-based company, accusing it of misleading investors and failing to disclose the company's alleged ties to Jason Galanis, who has been charged with market manipulation and several counts of fraud.

In economic news, mortgage applications increased 4% from a week ago on a seasonally adjusted basis for the week ended Jan. 20, the Mortgage Bankers Association reported, citing its latest weekly mortgage application survey.

The Federal Housing Finance Agency's latest monthly house price index showed house prices in the U.S. rose 0.5% month over month in November, on a seasonally adjusted basis.

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