Financial Sector Update for 07/16/2020: PIPR,WABC,BAC,AMRB

Financial stocks turned solidly lower in afternoon trading, with the NYSE Financial Index dropping 1.0% while the SPDR Financial Select Sector ETF was down 0.3%.

The Philadelphia Housing Index was 1.4% higher, reversing an earlier decline.

In company news, Piper Sandler Cos (PIPR) was almost 1% lower late Thursday after the investment banking and institutional securities firm said it has hired Matthew Wolfe as managing director for its equity capital markets segment with a focus on clients in the technology sector. Wolfe joins the company from Evercore Partners where also was a managing director within its technology advisory group. He previously also worked at Barclays and Bank of America Merrill Lynch.

Bank of America (BAC) fell nearly 3% after reporting Q2 net income of $0.37 per share, down from $0.74 per share during the year-ago period but still exceeding the Capital IQ consensus looking for a profit of $0.29 per share. Net revenue declined 3.4% compared with the same quarter last year to $22.3 billion, also topping the $22 billion analyst mean for the three months ended June 30.

American River Bankshares (AMRB) slid 3.6%. The bank holding company Thursday reported Q2 net income of $0.30 per share, improving on a $0.22 per share for the same quarter last year. Total revenue grew to almost $6.9 million. The three analysts polled by Capital IQ, on average, had been expecting American River to earn $0.23 per share on $6.79 million in revenue.

To the upside, Westamerica Bancorp (WABC) was hanging on for a 0.8% gain after Thursday reporting Q2 net income of $0.72 per share, down a penny compared with the same quarter last year but still topping the Capital IQ consensus expecting a $0.65 per-share profit for the three months ended June 30. Revenue fell 1.9% year-over-year to $51.61 million, also exceeding the $46.65 million analyst mean.

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