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Stifel Financial Inks Deal to Acquire B&F Capital Markets

Zacks Equity Research

Stifel Financial Corporation SF has entered into an agreement to acquire Cleveland, OH-based B&F Capital Markets. Though terms of the deal were not disclosed, it is expected to close in third-quarter 2019.

B&F is a provider of extensive interest rate swap capabilities to regional and community banks. It operates through seven offices nationwide with 27 employees.

B&F enters into strategic partnerships with banks whose asset size varies from $500 million to more than $30 billion. Through these strategic partnerships, it initiates, develops and grows interest rate derivative programs to hedge interest rate risk for the banks’ commercial borrowers.

“The addition of B&F’s significant expertise in interest rate risk management for banks’ commercial borrowers further strengthens Stifel’s industry-leading capabilities within the financial services sector,” said Ronald J. Kruszewski, Chairman and CEO of Stifel.

Since 2007, Stifel has been acquiring companies to fulfil its strategic vision of becoming a premier wealth management and investment banking firm.Recently, it announced a deal to acquire certain assets of George K. Baum & Company. 

In July 2019, it completed the buyout of Mooreland Partners, an independent M&A and private capital advisory firm that provides services to global technology industry.

The company’s strong capital position enables it to undertake strategic growth actions. Also, diversified sources of revenues are expected to support the bank’s financials. Additionally, it will benefit from improving conditions in the domestic economy.

So far this year, shares of Stifel have gained 26.5% against the industry’s decline of nearly 1%.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A few better-ranked stocks in the finance are Principal Financial Group, Inc. PFG, SEI Investments Company SEIC and Federated Investors FII. All these stocks currently carry a Zacks Rank #2 (Buy).

Over the past 60 days, Principal Financial has witnessed 3% upward earnings estimate revision for the current year. Its shares have gained 1.2% in the past six months.

SEI Investments’ earnings estimates for 2019 have been revised 1.3% upward over the past 60 days. Shares of the company have gained 5.5% in the past six months.

Federated’s earnings estimates for the current year have been revised 3.3% upward over the past 60 days. Shares of the company have gained 8.4% in the past six months.

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Stifel Financial Corporation (SF) : Free Stock Analysis Report
 
Federated Investors, Inc. (FII) : Free Stock Analysis Report
 
SEI Investments Company (SEIC) : Free Stock Analysis Report
 
Principal Financial Group, Inc. (PFG) : Free Stock Analysis Report
 
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