U.S. bank stocks closed lower Tuesday as the Dow Jones Industrial Average hit 23,000 for the first time ever earlier in the day.
The SNL U.S. Bank Index fell 0.63% to 573.37, while the SNL U.S. Thrift Index decreased 0.68% to 942.40. The Dow Jones Industrial Average rose 0.18% to 22,997.44, the S&P 500 increased 0.07% to 2,559.36 and the Nasdaq Composite Index decreased 0.01% to 6,623.66.
Dallas-based Comerica Inc. and Columbus, Ga.-based Synovus Financial Corp. reported their third-quarter earnings today. Comerica reported a boost in profit from higher interest rates, but its stock still closed lower on the day, falling 0.72% to $74.80. The company beat analysts' consensus EPS estimate by three cents.
On its earnings call, Synovus executives said the company's $1.1 billion brokered time deposits acquisition from World's Foremost Bank will provide it with a liquidity boost to create new earning assets. The company beat analysts' consensus EPS estimate by 13 cents, but its stock still closed 1.69% lower to $45.86.
On Monday, Midland States Bancorp Inc. announced it was acquiring Alpine Bancorp. Inc. in a cash-and-stock deal valued at about $181.0 million. The deal marked the company's latest in a streak of 11 other acquisitions since 2008, and analysts expect it to boost the company's liquidity and earnings. Midland's stock closed 2.48% higher to $33.85 today.
The largest four banks in the U.S. closed mixed. Bank of America Corp. fell 0.15% to $26.20, Wells Fargo & Co. fell 1.13% to $53.19, JPMorgan Chase & Co. decreased 0.22% to $97.62 and Citigroup Inc. rose 0.59% to $72.19.
Among notable movers, PacWest Bancorp fell 3.06% to $46.62. The company, with $22.24 billion in assets, reported today that its net earnings climbed 8% year over year.
On Wednesday, U.S. Bancorp, M&T Bank Corp. and Northern Trust Corp. are expected to report their third-quarter earnings.
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