The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

Former Goldman exec to lead Cleveland Fed

Former Goldman exec to lead Cleveland Fed

The Federal Reserve Bank of Cleveland has selected its next CEO. The Cleveland Fed said in a press release that Beth Hammack will also become its president on Aug. 21. She will succeed Loretta Mester, whose tenure will conclude on June 30, consistent with the Fed’s mandatory age and length-of-service policies. Hammack “is the ideal leader to build on the great work already underway at the Cleveland Fed to promote

May 29, 2024
Citizens & Northern in Pa. plans for CEO’s 2027 retirement

Citizens & Northern in Pa. plans for CEO’s 2027 retirement

Citizens & Northern in Wellsboro, Pa., disclosed that its CEO plans to retire in 2027. The $2.5 billion-asset company said in a regulatory filing that J. Bradley Scovill intends to step down as president at that time. The company, in preparation for Scovill’s retirement, entered into a new employment agreement that is set to expire on April 30, 2027. The board also approved a special incentive award of 20,000 shares

May 28, 2024
Investor terminates property deal with PB Bankshares in Pa.

Investor terminates property deal with PB Bankshares in Pa.

PB Bankshares in Coatesville, Pa., disclosed that a real estate sale fell through. The $450 million-asset company disclosed in a press release that Ferfeldt Investments had terminated an agreement to buy vacant land next to a branch in New Holland, Pa. The investor had agreed to pay $950,000 for the property. “The agreement provided that the buyer could elect to terminate the agreement during the inspection period,” the filing said.

May 25, 2024
Gesa Credit Union agrees to buy Security State in Washington

Gesa Credit Union agrees to buy Security State in Washington

Gesa Credit Union in Richland, Wash., has agreed to buy Security State Bank in Centralia, Wash. The $5.5 billion-asset Gesa did not disclose the price it will pay for the $606 million-asset Security State. The deal is expected to close next year. Security State has 12 branches. “Gesa and Security State Bank have shared the same values for over 70 years, with an unwavering dedication to the communities we serve,”

May 25, 2024
Failed Heartland Tri-State CEO pleads guilty to embezzlement

Failed Heartland Tri-State CEO pleads guilty to embezzlement

The former CEO of Heartland Tri-State Bank pleaded guilty to embezzling funds that led to the Elkhart, Kan., bank’s failure. Shan Hanes had been accused of embezzling $47.1 million for personal cryptocurrency purchases, executing 10 wire transfers between May and July 2023. The bank was seized by regulators in July 2023 and sold to Dream First Bank. Hanes faces up to 30 years in prison; he is set to be

May 24, 2024
Fed issues rare master account status to tier 3 financial institution

Fed issues rare master account status to tier 3 financial institution

Numisma Bank in Greenwich, Conn., has received conditional approval for a Federal Reserve master account. Numisma, which focuses on banknote distribution, is a tier 3 institution that is state-chartered but isn’t backed by the Federal Deposit Insurance Corp. The approval gives the bank access to the Fed’s liquidity facilities. The Fed has rejected applications by other financial institutions, including Custodia Bank and The Narrow Bank, on the grounds that granting

May 24, 2024
Capital One, Walmart end consumer card partnership

Capital One, Walmart end consumer card partnership

Capital One Financial in McLean, Va., and Walmart have ended their consumer card partnership. The $482 billion-asset Capital One said in a press release that the parties ended a 2018 agreement that made the financial services company the exclusive issuer of Walmart consumer credit cards. Capital One will retain ownership and servicing of the card accounts. The companies had been squabbling in recent months, with Walmart claiming in a lawsuit that

May 24, 2024
Comerica to beef up compliance practices following OCC agreement

Comerica to beef up compliance practices following OCC agreement

Comerica in Dallas has agreed to beef up its compliance practices under an enforcement action with the Office of the Comptroller of the Currency. The agreement came after the OCC found unsafe and unsound practices at the $79.4 billion-asset company, with a focus on its risk governance and internal controls. There was no financial penalty associated with the agreement. Comerica agreed to form a compliance committee and will show the

May 24, 2024