Friday's Financial Winners & Losers
Fannie Mae
( FNM) on Friday said it bought more mortgages in March than the month before, helping lead financial stocks higher.
The government-sponsored mortgage lender said its mortgage commitments rose to $31 billion in March from $25 billion in February, after regulators eased capital requirements. Shares of Fannie Mae were up $2.90, or 10.4%, to $30.93.
The market was also rewarding any bank that reported positive results for the first quarter.
SVB Financial Group
(SIVB) - Get Report
jumped 12.1% after reporting that its net income was $27.9 million vs. $34.3 million in the year-ago period. Even though it was lower than last year, it was respectable compared to other banks. Investors pushed the stock up $5.20 to $48.37.
Interactive Brokers Group
(IBKR) - Get Report
reported after the close on Thursday that its first-quarter net income of $27.2 million was more than double the $12.8 million reported in the year-ago period. The brokerage firm climbed $3.05, or 10.9%, to $30.92.
Profits grew 8% at
Glacier Bancorp
(GBCI) - Get Report
in the first quarter when the bank's commercial lending increased. The bank's loan portfolio grew 15% as the bank issued more commercial loans. Shares in the Montana-based bank were up 4.8% to $20.70.
The
NYSE
Financial Sector Index closed up 1.4% to 7,749.77.
But investors were showing no patience with banks that did not weather the first quarter well.
MB Financial
(MBFI) - Get Report
was shedding 8.6% after its parent said that its first-quarter earnings plunged 68% due to a sharp increase in bad debt tied to fraud. Of the $22.5 million reserved, $17 million was tied to loan fraud cases and a review that determined one of its loan divisions was not following established monitoring procedures. Shares of the Midwestern bank were losing $2.65 to $28.30.
West Coast bank
UCBH Holdings
( UCBH) reported that its 2008 first quarter results paled in comparison to last years due to the weakening California real estate market. Net income came in at $2.2 million, compared with $27 million in the first quarter of 2007. The problems in the construction lending portfolio are mainly in the distressed markets in California. The stock plunged 4.6% to $6.80.
And finally,
Genworth Financial
(GNW) - Get Report
said Thursday after the close that its first quarter profit fell by more than half as it too was hit by fallout from the housing crisis. The insurance provider lowered its full-year forecast and saw its shares fall by 5% to $22.33, a drop of $1.17.