Proposed Ala. bank gets conditional FDIC approval
Organizers of Nova Bank in Huntsville, Ala., have received conditional approval from the Federal Deposit Insurance Corp. The FDIC signed off on plans for the de novo bank on Tuesday, provided the founders can raise $21.7 million of initial capital. Organizers originally applied with the FDIC in mid-2021 but withdrew the application in April 2022. […]
How Lone Star in Houston found an acquirer
Lone Star Bank in Houston considered offers from two other suitors – a bank and an investment group – before deciding to have serious discussions with First Guaranty Bancshares in Hammond, La. The $3.2 billion-asset First Guaranty agreed in January to buy the $160.8 million-asset Lone Star. Lone Star’s board began to evaluate the rationale […]
First Carolina hauling in deposits with BankMobile pact
First Carolina Bank in Raleigh has a new deposits partnership with BM Technologies in Radnor, Pa. The $2.2 billion-asset First Carolina said in a press release that it will be the exclusive provider of deposit accounts for BankMobile’s higher education program. First Carolina, which is exempt from interchange caps under the Durbin Amendment, should […]
First Republic execs forego bonuses in 2023
Executives at First Republic Bank in San Francisco will forego annual bonuses for 2023. The $213 billion-asset bank disclosed in a regulatory filing that CEO Michael Roffler, Executive Chairman James Herbert II and all other executive officers will also forfeit vesting all performance-based incentives this year. Herbert also decided to waive his salary, effective March […]
PacWest explored, opted against capital raise
PacWest Bancorp in Los Angeles briefly explored raising capital before deciding that doing so “would not be prudent.” The $41.2 billion-asset company said in a press release that it secured $1.4 billion in fully funded cash proceeds from ATLAS SP Partners through a new senior asset-backed financing facility. The move unlocked liquidity from “unencumbered, […]
First Mid in Illinois to buy Blackhawk Bancorp
First Mid Bancshares in Mattoon, Ill., has agreed to buy Blackhawk Bancorp in Beloit, Wis. The $6.7 billion-asset First Mid said in a press release that it will pay $90.3 million in stock for the $1.3 billion-asset Blackhawk. The deal, which is expected to close in the second half of this year, priced Blackhawk at […]
PacWest: Deposit volatility has ‘calmed’ in recent days
PacWest Bancorp in Los Angeles said deposit volatility has “calmed” in recent days. The $41.2 billion-asset company said in a press release that it had elevated net deposit outflows after regulators closed Silicon Valley Bank and Signature Bank, with a concentration in its venture banking business. Net outflows “have fallen sharply” since March […]
FDIC extends deadline to bid on SVB bridge bank
The Federal Deposit Insurance Corp. has extended the bidding process for Silicon Valley Bridge Bank in Santa Clara, Calif. The FDIC said in a press release that there “has been substantial interest from multiple parties” but the bidders need more time to explore all options “to maximize value and achieve an optimal outcome.” The FDIC […]
AmeriServ files lawsuit in effort to end proxy battle
AmeriServ Financial has filed a lawsuit against Driver Management in an effort to invalidate the activist investor’s bid to have three people stand for election to the Johnstown, Pa., company’s board. The $1.4 billion-asset company said in a press release that the lawsuit, filed in the Court of Common Pleas of Cambria County, Pa., […]
New York Community buys Signature deposits, some loans
New York Community Bancorp in Hicksville has acquired “substantially all deposits and certain loan portfolios” tied to Signature Bridge Bank in New York. The Federal Deposit Insurance Corp. said in a press release that the $90 billion-asset New York Community unit Flagstar Bank had entered into a purchase and assumption agreement. Regulators closed the $110 […]
FedNow set to launch in July
The Federal Reserve will launch its FedNow Service in July. The Fed said in a press release the formal certification process will begin during the first week of April. The Fed and certified participants will conduct production validation activities in June to confirm readiness for the launch. FedNow “will enable every participating financial institution, the […]
SVB Financial files for bankruptcy protection
SVB Financial Group in Santa Clara, Calif., has filed for Chapter 11 bankruptcy protection a week after regulators seized its bank. The company said in a press release that it is seeking court-supervised reorganization in the U.S. Bankruptcy Court for the Southern District of New York. SVB said it continues to explore strategic alternatives for […]
Sister of former RBB CEO resigns from LA bank’s board
RBB Bancorp said the sister of Alan Thian, who resigned as the Los Angeles company’s president and CEO last year, has stepped down from its board. The $3.9 billion-asset RBB disclosed in a regulatory filing that Catherine Thian resigned on March 13, citing health reasons. She also resigned her posts on the company’s asset/liability, nomination […]
Sterling in Mich. enters guilty plea for past mortgage dealings
Sterling Bancorp revised its fourth quarter and 2022 earnings after entering into a plea agreement with the Justice Department tied to the Southfield, Mich., company’s defunct mortgage program. The $2.5 billion-asset company said in a press release that it agreed to plead guilty to one count of securities fraud tied to disclosures for its Advantage […]
Big banks infuse $30B of deposits into First Republic
First Republic Bank in San Francisco will receive a total of $30 billion of uninsured deposits from 11 U.S. banks. The bank said in a press release that the funds will come from Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, Goldman Sachs, Morgan Stanley, Bank of New York Mellon, PNC Bank, State Street, Truist and U.S. […]
Massachusetts merger to create $4B-asset mutual
South Shore Bancorp in South Weymouth, Mass., has agreed to merge with 1831 Bancorp in Dedham, Mass. The parent companies for the $2.1 billion-asset Dedham Institution for Savings and the $2.1 billion-asset South Shore Bank said in a press release that the mutual will continue to operate independently. “We are two strong institutions that are […]
Goldman bought securities in sale that preceded SVB failure
Goldman Sachs in New York bought the portfolio of underwater securities that accelerated the demise of Silicon Valley Bank in Santa Clara, Calif. SVB Financial disclosed in a regulatory filing that it sold Goldman the securities – which had a $24 billion book value – for net proceeds of $21.5 billion. SVB’s disclosure of the […]
BayVanguard converting to fully stock-owned company
BayVanguard Bank in Baltimore plans to raise up to $141 million as part of its plans to convert from a mutual to a fully-stock owned company. The $845 million-asset bank disclosed in a regulatory filing that BV Financial, a newly formed holding company, plans to sell 10.6 million to 14.4 million shares of stock. The […]
Fed vice chair to review SVB supervision
A high-ranking Federal Reserve official will oversee the post-mortem for Silicon Valley Bank. The Fed said in a press release that Michael Barr, its vice chair for supervision, is leading a review of the supervision and regulation of Silicon Valley Bank. The review will be released by May 1. “The events surrounding Silicon Valley Bank […]
‘Business as usual’ at SVB bridge bank, new CEO says
Silicon Valley Bank, the bridge bank formed after Friday’s high-profile failure, is “conducting business as usual,” according to its new CEO. “I look forward to getting to know the clients of Silicon Valley Bank,” Tim Mayopoulos wrote in an email to the bank’s clients. “I come to this role with humility. I also come to […]
Somerset Savings in N.J. lining up conversion
Somerset Savings Bank in Bound Brook, N.J., plans to raise up to $111 million as part of its plans to convert from a mutual to a fully-stock owned company. The $649.5 million-asset bank disclosed in a regulatory filing that SR Bancorp, a newly formed holding company, plans to sell 8.5 million to 11.5 million shares […]
Former Fannie Mae, BofA exec to run SVB bridge bank
Tim Mayopoulos, former president and CEO of Fannie Mae, was named CEO of the bridge bank tied to Friday’s failure of Silicon Valley Bank. The Federal Deposit Insurance Corp. said in a press release that Mayopoulos, who once was general counsel at Bank of America, will oversee the newly formed Silicon Valley Bridge Bank NA. […]
Western Alliance, PacWest among banks touting health
Several banks have issued statements showing their overall financial health and sources of liquidity in the wake of two high-profile bank failures in recent days. Western Alliance Bancorp. in Phoenix, which had recently touted its financial stability, announced additional steps it had taken to improve its position. The company said in a statement that it […]
SVB reviewing options for remaining businesses
SVB Financial in Santa Clara, Calif., is exploring strategic options for its businesses that were not seized by regulators on Friday. SVB said in a press release that its board had formed a restructuring committee consisting of five independent directors to review options for the holding company and units SVB Capital and SVB Securities. SVB […]
Thoughts on confidence and concentrations
What a topsy-turvy week. In a matter of days, Silvergate shut down its crypto exchange network, then announced it would liquidate its bank. Regulators closed Silicon Valley Bank less than two days after the bank sold a large chunk of securities at a substantial loss to offset a steep drop in deposits. Next came Signature Bank and regulators’ assurances […]