First of Long Island repositioned its balance sheet in 1Q
Securities sales cut into first-quarter profits at First of Long Island in Melville, N.Y. The $4.2 billion-asset company said in a press release that net income fell 46% from a year earlier, to $6.5 million. The company recorded a $3.5 million loss from selling $149 million of fixed-rate municipal securities. It then bought $135 million […]
FDIC mulls varied deposit caps for commercial, retail accounts
The Federal Deposit Insurance Corp. floated a plan to offer different deposit insurance caps based on account type. The agency, in a new report on the deposit insurance system, discussed a scenario where business accounts receive “significantly higher coverage” than retail accounts. Other options include making no changes to the current system, where deposits of […]
Orange County Bancorp wrote of Signature investment
Orange County Bancorp in Middletown, N.Y., reported a sharp decrease in profit after it had to write off a $5 million investment in the failed Signature Bank. The $2.5 billion-asset company said in a press release that its first-quarter net income fell 39% from a year earlier, to $4.8 million. Orange County was left holding […]
Securities sales cut into Community Bank System profit
Community Bank System in Syracuse, N.Y., reported lower quarterly profit after joining the ranks of banks repositioning their balance sheets. The $15.3 billion-asset company said in a press release that first-quarter net income fell 88% from a year earlier, to $5.8 million. The company recorded a $52.3 million pretax loss after selling investment securities with […]
Group applies to open de novo bank in Houston
A group is looking to form a new bank in Houston. Organizers of Inspire Bank filed an application with the Federal Deposit Insurance Corp. for deposit insurance on April 28. Inspire would be a national bank regulated by the Office of the Comptroller of the Currency. The application wasn’t immediately available. Inspire aims to become […]
Land of Lincoln CU to buy Nokomis Savings Bank
Land of Lincoln Credit Union in Decatur, Ill., has agreed to buy Nokomis Savings Bank in Nokomis, Ill. The $457 million-asset credit union said in a press release that it expects to complete its purchase of the $27 million-asset bank by the end of the first quarter of 2024. The price wasn’t disclosed. Nokomis has […]
How Partners found a new buyer when first sale fell through
Partners Bancorp in Salisbury, Md., was allowed to look for a buyer after OceanFirst Financial, its original acquirer, agreed to a limited waiver of their exclusivity agreement. OceanFirst’s planned purchase of the $1.6 billion-asset Partners fell through last fall when they were unable to secure regulatory approval. Partners would agree in February to sell to […]
Sterling in Mich. reports loss from planned mortgage sales
Sterling Bancorp in Southfield, Mich., narrowed its losses in the first quarter. The $2.4 billion-asset company said in a press release that it lost $500,000, an improvement from the $18.4 million loss it had in the fourth quarter. Sterling recorded a $6.5 million charge off in the first quarter after reclassifying about $41.1 million of […]
Republic First reports 1Q loss on legal costs, SBNY investment
Republic First Bancorp in Philadelphia reported a $9.7 million first-quarter loss that reflected elevated legal expenses and an investment in the failed Signature Bank. The $6.2 billion-asset company said in a press release that it had a $3.1 million writedown tied preferred stock in Signature and $5.5 million of legal, professional and audit fees. The […]
JPMorgan Chase to buy failed First Republic
First Republic Bank in San Francisco, Calif., was closed by the California Department of Financial Protection and Innovation. The Federal Deposit Insurance Corp., as receiver, entered into an agreement to sell all of the $229 billion-asset bank’s deposits to the $3.7 trillion-asset JPMorgan Chase Bank. The $30 billion of uninsured deposits that 11 banks placed […]
BayFirst: Loan sale fell through when Signature failed
Another bank is feeling the sting of Signature Bank’s failure. BayFirst Financial in St. Petersburg, Fla., disclosed that a scheduled sale of $60 million of Small Business Administration 7(a) loans to Signature fell through, leaving it to rebid to another investor “during less-favorable market conditions.” The $1.1 billion-asset company said the development resulted in gains […]
Coastal in Wash. deposits rise on BaaS growth
Coastal Financial in Everett, Wash., said deposits increased largely because of its ongoing Banking-as-a-Service push. The $3.5 billion-asset company said in a press release that deposits rose by 9.9% in the first quarter from a quarter earlier, to $3.1 billion. Coastal said its CCBX business, which provides BaaS services, added $284.5 million of deposits in […]
Isabella Bank in Mich. to have new CEO in 2024
Isabella Bank in Mt. Pleasant, Mich., has implemented its succession plan. The $2 billion-asset company said in a press release that Jerome Schwind will become its president and CEO in January. Schwind, the bank’s president since 2015, will succeed Jae Evans, who is retiring. Neil McDonnell, the company’s chief financial officer, will replace Schwind as […]
FDIC: Poor management, slow response led to Signature failure
The Federal Deposit Insurance Corp. used its post mortem of the failure of Signature Bank to reflect on things it could have done better. The agency said in a press release that the root cause for the New York bank’s collapse was poor management that resulted in the pursuit of rapid, unrestrained growth. “Management did […]
Fed report delivers mea culpa following SVB collapse
The Federal Reserve’s initial report on the failure of Silicon Valley Bank does not indicate that a full-blown banking crisis is underway. Rather, the review, led by Vice Chairman for Supervision Michael Barr, resulted in a mea culpa on the part of the Fed while also placing blame on SVB’s board and management. Specifically, the […]
FDIC to vet Cross River Bank’s new fintech partnerships
Cross River Bank has entered into a consent order with the Federal Deposit Insurance Corp. that requires the Teaneck, N.J., bank to seek FDIC approval before signing on any new fintech clients. The FDIC’s March 8 order flagged the $9.2 billion-asset bank’s compliance with fair lending regulations and its inability to establish adequate internal […]
Dime in N.Y. hires four deposit teams from Signature
Dime Community Bancshares in Hauppauge, N.Y., hired four deposit-focused groups from the failed Signature Bank. The $13.8 billion-asset company did not disclose how many bankers it hired or where the groups are located. New York Community Bancorp bought most of Signature after it was closed by regulators. “The recent disruption in our marketplace […]
Movement Bank in Va. taps insider as president
Movement Bank in Danville, Va., has a new president. Mike Whitehead announced his promotion on his LinkedIn profile. Whitehead, who joined the $148 million-asset bank in 2017 from BNC Bank, had served as a senior vice president. He was president and CEO of Randolph Bank & Trust from 2008 to 2013. Movement Bank was formed […]
First Foundation, investor settle legal spat
First Foundation in Dallas has reached an agreement with an activist investor to end litigation tied to director nominations. The $13.6 billion-asset company said in a press release that a settlement agreement with Driver Management will allow the investor to nominate Allison Ball to run for a board seat at this year’s annual meeting. The […]
Bancorp 34 to buy CBOA Financial in Arizona
Bancorp 34 in Scottsdale, Ariz., has agreed to buy CBOA Financial in Tucson, Ariz. The $576 million-asset Bancorp 34 said in a press release that it will pay $28 million in stock for the parent of the $370.3 million-asset Commerce Bank of Arizona. The deal is expected to close in the fourth quarter. “This is an […]
Eastern in Boston has big 1Q loss from securities sales
Eastern Bankshares in Boston reported a large quarterly loss after a major restructuring of its balance sheet. The $22.7 billion-asset company said in a press release that it lost $194.1 million in the first quarter after it sold $1.9 billion of securities at a $280 million loss. Proceeds from the sale were used to increase […]
Hanover in N.Y. lines up a new president
Hanover Bancorp in Mineola, N.Y., has a new president. The $2.1 billion-asset company said in a press release that Mac Wilcox had succeeded Brian Finneran, who retired in February. Wilcox joined Hanover in May 2021 after the company bought Savoy Bank, where he was president and CEO. He has been serving as Hanover’s chief lending […]
MidWestOne repositions balance sheet, unveils strategic plan
MidWestOne Financial Group in Iowa City reported a sharp drop in profitability after repositioning its balance sheet. The $6.4 billion-asset company also announced a three-year strategic plan designed to improve efficiency and returns. MidWestOne’s net income fell by 90% from a year earlier, to $1.4 million. The company sold $231 million of securities in late […]
Hawthorn in Mo. hires its next CEO
Hawthorn Bancshares in Jefferson City, Mo., will soon have a new CEO. The $1.9 billion-asset company said in a press release that Brent Giles will also become CEO of its bank on May 1. Giles previously served as president and CEO of Blue Valley Bank. Gregg Bexten, regional president of the bank’s central region, will […]
Illinois, Ohio mutuals converting to stock-owned status
Mutuals in Illinois and Ohio plan to raise up to $27.7 million by converting to stock-owned companies. PFS Bancorp in Peru, Ill., plans to raise up to $16.9 million in net proceeds from the conversion of Peru Federal Savings Bank. PFS is looking to sell 1.4 million to 1.8 million shares at $10 each. […]