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Midday Tuesday: Bank stocks dip as FOMC meeting begins

Bank and thrift stocks were trading lower around midday Tuesday, Dec. 13, as the Federal Open Market Committee commenced its final meeting of 2016, with investors and bankers widely expecting a boost in interest rates.

The SNL U.S. Bank Index was down 0.69% to 527.90, and the SNL U.S. Thrift Index slid 0.23% to 966.20. The broader markets were up, with the Dow Jones Industrial Average increasing 0.41% to 19,880.06, the S&P 500 rising 0.54% to 2,269.22 and the NASDAQ Composite Index climbing 1.16% to 5,474.87.

The nation's largest banks were down around midday: JPMorgan Chase & Co. lost 0.63% to $84.20, Citigroup Inc. decreased 1.16% to $58.86, Wells Fargo & Co. declined 0.59% to $55.45, and Bank of America Corp. lost 1.08% to $22.36.

In California, Pacific Premier Bancorp Inc. is acquiring Heritage Oaks Bancorp under an all-stock deal valued at $11.68 per share, or approximately $405.6 million, based on the buyer's Dec. 12 closing price of $33.65. Around midday, Pacific Premier slid 1.63% to $33.10, and Heritage advanced 4.70% to $11.37.

Among other names in the banking sector, Hancock Holding Co., priced a public offering of 5.5 million shares of its common stock. Its stock was down 2.90% to $42.72 around midday.

In the thrift space, BofI Holding Inc. gained 0.93% to $28.09.

In economic news, the U.S. foreclosure inventory dropped 31.5% in October, and completed foreclosures declined 24.9% compared to the year-ago period, CoreLogic reported.

The FDIC's Board of Directors approved a $2.16 billion operating budget for 2017, which is 2.4% lower from 2016 and 46% lower than the peak in 2010 at the height of the financial crisis.

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