Friday's Financial Winners & Losers

Updated from 1:16 EDT

Financial stocks gasped for air Friday before seesawing back into the red, notwithstanding an influx of positive earnings and analyst research as well as a skyrocketing Union State Bank (UBH Quote).

Shares of the Orangeburg, N.Y., bank surged 57.3% to $24.05 after KeyCorp (KEY Quote) agreed to buy it for around $575 million. The cash-and-stock deal will probably close within the next six months. KeyCorp, which expects earnings accretion from the merger in 2009, dipped 22 cents to $34.99.

Cash America International (CSH Quote), a Texas-based pawnshop operator, jumped 5.7% to $36.54 after saying second-quarter earnings spiked 19.4% to 43 cents a share, or $13.2 million, from a year ago. First State Bancorp (FSNM Quote), of Albuquerque, N.M., pocketed 35 cents a cents a share in that quarter to top Thomson Financial's estimates by a penny, and United Commercial Bank's (UCBH Quote) per-share profit was in line.

First State climbed 3.1% to $17.64; San Francisco-based United gained 11 cents, or 0.7%, to $16.77.

As for brokerage action, NYSE Euronext (NYX Quote) and Fifth Third Bancorp (FITB Quote) were both upped to neutral from sell at Bank of America, both on valuation, following their recent price slides. NYSE shares gained 2.9%; First Third got a lift earlier in the day but closed down 40 cents, or 1.1%, at $36.78.

Mortgage-investment firm Annaly Capital Management (NLY Quote) added 1% to $14.34 on a Citigroup upgrade to buy, and National City (NCC Quote) was raised to hold from sell by an analyst at Stifel Nicolaus. Shares advanced earlier in the day but closed off 24 cents at $29.86.