Sector Wrap: Regional bank stocks mixed

Shares of regional banks were mixed Friday after the Commerce Department reported that personal incomes in July dropped by the largest amount in nearly three years.

The report also showed that consumer spending moderated, raising more concerns about the economy.

In a research note released late Thursday, Ladenburg Thalmann analyst Richard Bove said BB&T Corp. could be ripe for a merger with a similarly sized regional bank once new leadership takes the helm.

BB&T said earlier this week that Chief Executive John Allison will retire at the end of the year and be replaced by Chief Operating Officer Kelly King. Bove speculated that Cincinnati's Fifth Third Bancorp could be a potential partner.

BB&T shares jumped 78 cents, or 2.7 percent, to close at $30 Friday. Fifth Third, meanwhile, advanced 43 cents, or 2.8 percent, to $15.78.

Other gainers in the sector included Regions Financial Corp., which rose 35 cents, or 3.9 percent, to $9.27, and Comerica Inc., which added 16 cents to $28.09.

M&T Bank Corp. gained 60 cents to $71.34.

Among the decliners in the sector were U.S. Bancorp, which fell 26 cents to $31.86, and Huntington Bancshares Inc., which lost 6 cents to $7.32.

Umpqua Holdings Corp. shed 12 cents to $13.96.