Truist reports 4Q loss on lower revenue, goodwill impairment
Truist Financial in Charlotte, N.C., reported a quarterly loss that reflected lower revenue, a goodwill impairment charge, a special assessment from the Federal Deposit Insurance Corp. and restructuring costs. The $535 billion-asset company said in a press release that it lost $5.2 billion in the fourth quarter. Revenue fell by 8% from a year earlier, […]
Princeton Bancorp in NJ to buy Cornerstone Financial
Princeton Bancorp in New Jersey, which once tried to sell itself, is again a buyer. The $2 billion-asset company said in a press release that it has agreed to buy the $321 million-asset Cornerstone Financial in Mount Laurel, N.J., for $17.9 million, subject to adjustment. The all-stock deal, which is expected to close in the […]
Special assessment, severance costs cut into Citizens’ earnings
Citizens Financial Group in Providence, R.I., reported a sharp decline in quarterly earnings that reflected its special assessment from the Federal Deposit Insurance Corp. and charges tied to cutting 650 jobs. The $222 billion-asset company said in a press release that its fourth-quarter earnings fell by 71% from a year earlier, to $189 million. The […]
Kentucky First Federal indefinitely suspends quarterly dividend
Kentucky First Federal Bancorp in Hazard indefinitely suspended its quarterly dividend. The $357 million-asset company said in a press release that lower earnings tied to higher interest rates and “a persistent inversion of the yield curve” have limited its banks’ ability to maintain enough liquidity to fund operations and loan growth and upstream sufficient […]
Centra CU and Hoosier Hills CU in Indiana announce merger
Centra Credit Union in Columbus, Ind., and Hoosier Hills Credit Union in Bedford, Ind., are planning to merge. The $2.1 billion-asset Centra and the $900 million-asset Hoosier Hills expect to complete their merger by July 1. “The larger organization will be more nimble, proactive and better able to introduce products and technological advances to meet […]
Doctor-focused Panacea Financial raises $24.5 million
Panacea Financial, a fintech division of Primis Financial in McLean, Va., raised $24.5 million in Series B funding. The fintech, which was formed in November 2020 and serves doctors and medical practices, said in a press release that Valar Ventures was the sole institutional investor in the round. The funding will allow Panacea to expand […]
CFPB proposes new system for determining overdraft fees
The Consumer Financial Protection Bureau has proposed a rule that would limit overdraft charges at large U.S. banks and credit unions. The proposal, which must go through a comment period, would replace the traditional $35 overdraft fee with a set of options for setting a lower fee. Banks could charge a breakeven fee based on […]
Restructuring costs, FDIC assessment weight down Fulton results
Fulton Financial in Lancaster, Pa., reported lower quarterly earnings that reflected restructuring costs and a special assessment from the Federal Deposit Insurance Corp. The $27.7 billion-asset company said in a press release that its fourth-quarter earnings fell by 1% from a year earlier, to $274 million. The quarter included $3.2 million of restructuring expenses, mostly […]
First Bancshares in Miss. sells securities, repays Fed borrowings
First Bancshares in Hattiesburg, Miss., joined the growing list of banks repositioning securities during the fourth quarter. The $7.9 billion-asset company said in a press release that it sold $123 million of available-for-sale securities at a pretax loss of $9.7 million. It reinvested $93 million of the proceeds in higher-yielding securities and repaid $30 million […]
BankFirst in Wis. pulls lever to offset securities losses, other charges
BankFirst in Manitowoc, Wis., reported a significant increase in net income after the sale of a minority stake in a tech services company offset one-time losses elsewhere. The $4.2 billion-asset company said in a press release that its fourth-quarter profit nearly tripled that of a year earlier, to $34.9 million. The results were largely due […]
Banks in Michigan, Ohio, NY completes private placements
Banks in Michigan, Ohio and New York completed private placements of common stock. Bank Michigan Financial in Brooklyn sold $4.1 million of stock on Jan. 3, according to a regulatory filing. The $119 million-asset bank disclosed that the minimum purchase was $25,000. Grasshopper Bancorp in New York raised $10 million, based on data compiled by […]
Amerant in Fla. discloses long list of 4Q expenses, charges
Amerant Bancorp in Coral Gables, Fla., has agreed to sell $401 million of multifamily loans at a loss. The $9.3 billion-asset company disclosed in a regulatory filing that it will sell the Houston-based loans to an affiliate of Prime Finance Advisor at a $23 million after-tax loss. The portfolio was classified as held-for-sale on Dec. […]
FirstSun in Denver to buy HomeStreet in Seattle for $286M
FirstSun Capital Bancorp in Denver has agreed to buy HomeStreet in Seattle. The $7.8 billion-asset FirstSun said in a press release that it will pay $286 million in stock for the $9.5 billion-asset HomeStreet. The deal, which is expected to close in mid-2024, priced HomeStreet at 56% of its tangible book value. FirstSun also agreed […]
Ally Financial decides on interim CEO while it conducts search
Ally Financial in Detroit has an interim CEO. The company said in a press release that Douglas Timmerman will take over for Jeffrey Brown on Feb. 1. Timmerman is president of dealer financial services. “Doug’s long tenure at Ally and expertise in auto finance is extraordinarily well respected both inside and outside of Ally,” Franklin […]
Fiserv applies for limited purpose bank charter in Georgia
Payment processor Fiserv is trying to become the first company to obtain a merchant acquirer limited purpose bank charter in Georgia. The move would allow Fiserv to authorize, settle and clear payment transactions for merchants. Doing so would let the Brookfield, Wis., company, which typically uses bank partners as part of payment processing, control the […]
Forward Bank in Wis. applies to buy Lake City in Minn.
Forward Bank in Marshfield, Wis., has agreed to buy Lake City Federal Bank in Lake City, Minn. The $964 million-asset Forward recently submitted its applications with regulators. It plans to complete its purchase of the $76 million-asset Lake City in the second quarter. The financial terms weren’t disclosed. “Our banks will work closely to ensure […]
Stablecoin issuer Circle files paperwork for IPO
Stablecoin issuer Circle has filed confidential paperwork with the Securities and Exchange Commission for an initial public offering. The company, which issues USDC, disclosed the filing on Thursday. The amount Circle plans to raise, along with the number of shares it wants to sell, were not disclosed. The SEC must first review the paperwork. Circle […]
AmeriServ to report 4Q loss on Rite Aid exposure, securities loss
AmeriServ Financial in Johnstown, Pa., expects to report a large quarterly loss after pursuing cost-cutting measures, selling underwater securities, and charging off loans tied to a national pharmacy chain’s bankruptcy. The $1.4 billion-asset company, which has been locked in a battle with an activist investor, disclosed in a regulatory filing that it plans to report […]
Merger to create third-biggest credit union in Virginia
Virginia Credit Union in Richmond and Member One Federal Credit Union in Roanoke, Va., plan to merge. The combination of the $5.1 billion-asset Virginia Credit Union and the $1.6 billion-asset Member One would create a financial institution with 37 branches and nearly 500,000 members. It would be Virginia’s third-largest credit union. The merger is expected […]
Esquire in N.Y. buys big stake in payments fintech Payzli
Esquire Financial Holdings in Jericho, N.Y., has acquired a large stake in United Payment Systems. The $1.5 billion-asset Esquire said in a press release that it invested $6 million in the payments fintech, which operates as Payzli, for a 24.99% ownership interest. Payzli is a registered independent sales organization of the bank. The investment “will […]
Global FCU to buy First Financial Northwest Bank for $231M
The second credit union-bank deal of 2024 is a doozy. Global Federal Credit Union in Anchorage, Alaska, agreed to buy First Financial Northwest Bank in Renton, Wash., for $231.2 million in cash. The deal is expected to close in the fourth quarter. First Financial is the bank unit of the $1.5 billion-asset First […]
Proposed N.Y. de novo bank to cater to first responders
A proposed bank in New York plans to offer special products to first responders. Organizers of Greater Gotham Bank is in talks with the International Association of Fire Fighters/AFL-CIO to provide specialized services to union members who are professional firefighters and paramedics. Those products could include free or discounted checking accounts; premium rate CDs; free […]
Citi records $1.3B reserve build for Argentina, Russia dealings
Citigroup in New York recorded a $1.3 billion reserve build in the fourth quarter tied to exposure in Argentina and Russia. The $2.4 trillion-asset company also disclosed in a regulatory filing that it took a roughly $880 million hit in the quarter due to recent devaluations to the Argentine peso. Citi also said it recorded […]
Security Federal in S.C. eliminates mandatory retirement age
Security Federal in Aiken, S.C., changed it bylaws to remove a mandatory retirement provision for its officers. The $1.5 billion-asset company disclosed in a regulatory filing that its board eliminated the section of the bylaws that set an age limit of 70.5 years. The change was effective immediately. Chris Verenes, the company’s CEO, is 66, […]
Blue Ridge in Va. aims to settle lawsuit against acquired bank
Blue Ridge Bankshares in Charlottesville, Va., is looking to resolve a longstanding lawsuit filed by former employees of a processor bank. The $3.3 billion-asset company has offered to pay $6 million to settle claims that executives at Virginia Community Bank breached their fiduciary obligations by improperly using an employee pension fund. Blue Ridge bought Virginia […]