Muncie, Ind.-based MutualFirst Financial Inc. fell 1.64% to $38.95 on Thursday, Oct. 5, a day after announcing it will acquire Bloomfield, Ind.-based Universal Bancorp in a cash-and-stock deal valued at $65.6 million.
FIG Partners analyst Brian Martin wrote that the deal is reasonably priced and "makes strategic sense," since it will expand the company's footprint into adjacent markets and improve MutualFirst's loan-to-deposit ratio.
Overall, banks and thrifts made gains for the day, with the SNL U.S. Bank Index increasing 1.26% to 582.14 and the SNL U.S. Thrift Index adding 0.79% to 944.33. In broader markets, the Dow Jones Industrial Average gained 0.50% to 22,775.39, the Nasdaq Composite Index rose 0.78% to 6,585.36 and the S&P 500 expanded 0.56% to 2,552.07.
The nation's largest banks also ended the day in the green, as Bank of America Corp. added 1.63% to $26.13, Citigroup Inc. improved 2.24% to $75.72, JPMorgan Chase & Co. rose 1.35% to $97.09 and Wells Fargo & Co. grew 0.78% to $55.39.
Among notable movers, Pacific Premier Bancorp Inc. jumped 4.65% to $39.35, SVB Financial Group gained 2.50% to $187.26 and First BanCorp. added 3.01% to $5.13.
In thrifts, New York Community Bancorp Inc. rose 1.33% to $12.99.
Also on Thursday, the Consumer Financial Protection Bureau finalized a rule that would impose new protections on payday loans, auto title loans, deposit advance products, and certain high-cost installment and open-end loans. Originally proposed in June 2016, the rule requires lenders to conduct a "full-payment test" to evaluate a borrower's ability to repay a lender while meeting basic living expenses and major financial obligations.
In economic news, initial unemployment claims fell by 12,000 to a seasonally adjusted 260,000 for the week ended Sept. 30, down from the previous week's unrevised level of 272,000, according to the U.S. Labor Department.
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