HSBC buys Silicon Valley Bank UK
HSBC Holdings has bought Silicon Valley Bank UK for just over a dollar. HSBC said in a press release that SVB UK had about $6.7 billion of loans and $8.1 billion of deposits on March 10. The company said that the final calculation of the gain arising from the acquisition “will be provided in due […]
First Republic announces aid from Fed, JPMorgan Chase
First Republic Bank in San Francisco said it has improved it financial position with help from the Federal Reserve and JPMorgan Chase. The bank said in a press release that it had received additional borrowing capacity from the Fed and added financing from JPMorgan Chase. In addition to continued access to funding through the Federal […]
Regulators close Signature Bank in New York
Regulators shut down Signature Bank in New York while vowing to make all depositors of the New York bank and Silicon Valley Bank in California whole. The $110 billion-asset Signature, which had close ties to the crypto industry, was closed due to “systemic risk,” the Federal Reserve, Federal Deposit Insurance Corp., and Treasury Department said […]
LendingClub, tech firms disclose SVB exposures
LendingClub in San Francisco is among the companies that have disclosed having deposit accounts at Silicon Valley Bank at the time it was taken over by regulators. The $8 billion-asset LendingClub disclosed in a regulatory filing that its relationship with SVB on Friday was limited to $21 million of funds on deposit. LendingClub said the […]
SVB in Calif. closed by regulators
Regulators have taken over Silicon Valley Bank in Santa Clara, Calif., marking the second-largest bank failure behind Washington Mutual in 2008. The $209 billion-asset bank was closed by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corp. as receiver. SVB, the bank’s parent company, had attempted to raise capital […]
Republic First in Pa. raising $125M via private placement
Republic First Bancorp in Philadelphia plans to raise $125 million in capital. The $5.6 billion-asset company said in a press release that Castle Creek Capital committed about $60.7 million, while an affiliate of Cohen Private Ventures pledged $30 million. The investors are buying common stock, non-voting common stock, warrants and convertible preferred stock. Castle Creek, […]
East Texas Bankshares to merge its two banks
East Texas Bankshares of Livingston plans to merge its two banks. The company said it will merge the $311 million-asset First National Bank of Jasper into the $438 million-asset First State Bank in Livingston. “We feel strongly that our customers and communities we service are really going to benefit from this merger,” Stephen Ernest, president […]
A conversation with new ICBA chairman Derek Williams
Derek Williams did not plan on a banking career. After graduating from college in 1984, he considered corporate finance. A recession, and a disappointing interaction with a stockbroker, led him to enter a training program at a community bank. “Banking wasn’t something I really started out to do,” he told The Bank Slate in a […]
SVB in Calif. sells chunk of bonds at a large loss
SVB Financial in Santa Clara, Calif., saw its shares tumble after disclosing plans to raise capital after selling a large amount of its bond portfolio at a loss. The $212 billion-asset company said in a press release that it sold about $21 billion of securities at a roughly $1.8 billion loss, or “substantially” all of […]
Former OCC official joins Anchorage Digital Bank board
Julie L. Williams, who twice served as Acting Comptroller of the Currency, has joined the board of Anchorage Digital Bank in San Francisco. Williams oversaw the OCC from April 1998 to December 1998 and from October 2004 to August 2005. Her addition “brings us additional banking industry and regulatory perspectives and experience, enhancing the value […]
Silvergate in California to voluntarily liquidate its bank
Silvergate Capital in La Jolla, Calif., plans to wind down operations and voluntarily liquidate its bank. The $11.4 billion-asset company said in a press release that the effort “is the best path forward” and would include a full repayment of all deposits. Silvergate also said it is considering how best to resolve claims and preserve […]
Newtek files $500 million shelf registration
Newtek Business Services in Boca Raton, Fla., which recently bought a bank, has filed to raise up to $500 million by selling securities and issuing debt. The company’s shelf registration includes common and preferred stock, depositary shares, subscription rights, warrants and debt securities. No timetable was set for any sales. Newtek said would use the […]
Saint Louis Bancshares raises $27M of capital
Saint Louis Bancshares in St. Louis, Mo., has raised $27 million in capital. The parent of the $824 million-asset St. Louis Bank plans to use the funds for growth initiatives. The capital included $10 million of Series A non-cumulative perpetual preferred stock, $4 million of common stock and $13 million of debt. “We believe Saint […]
Fifth Third to buy healthcare payments company
Fifth Third Bancorp in Cincinnati has agreed to buy Big Data Healthcare, a healthcare payments company. The $207 billion-asset Fifth Third did not disclose the price it will pay for the company, which adds more digital capabilities to the bank’s healthcare platform. “The healthcare industry is one of the largest and fastest growing segments of […]
Lake Shore CEO to retire in wake of reg order
The CEO of Lake Shore Bancorp will retire just weeks after the Dunkirk, N.Y., company’s bank was classified as being in a “troubled condition” by the Office of the Comptroller of the Currency. The $700 million-asset company disclosed in a regulatory filing that Daniel Reininga will also retire as president on March 10. Lake Shore […]
Fifth Third executive chairman to retire
Fifth Third Bancorp in Cincinnati will shrink the size of its board after the retirement of its executive chairman. The $207 billion-asset company disclosed in a regulatory filing that Greg Carmichael will retire at its April 18 annual meeting. Carmichael, a former Fifth Third CEO, had been chairman since February 2018. The board voted to […]
Silvergate shuts down crypto exchange network
Silvergate Capital in La Jolla, Calif., has shut down its cryptocurrency payments network after months of implosions by digital assets clients. The $11.4 billion-asset company said in a brief statement on its website that it had made the “risk-based decision to discontinue the Silvergate Exchange Network (SEN). Silvergate said that all of its other deposit-related […]
SouthState cuts executive chair post in governance move
SouthState in Winter Haven, Fla., will eliminate the position of executive chairman, separating employment with former CEO Robert Hill Jr. The $43.9 billion-asset SouthState disclosed in a regulatory filing that it eliminated the position “as part of a broader, ongoing effort to enhance the independence of the company’s board,” the filing said. Hill’s […]
Signature in NY continues to run off crypto deposits
Signature Bank in New York has run off about $1.5 billion of crypto-related deposits so far this quarter. The $110.4 billion-asset bank disclosed in its mid-quarter report that it continues to reduce the size of deposit relationships tied to the crypto industry. As of March 1, overall deposits were down $826 million from the end […]
Webster in Conn. identifies ‘potential material weakness’
Webster Financial in Stamford, Conn., will delay filing its annual report after identifying a potential material weakness. The $71.3 billion-asset company, which acquired Sterling Bancorp last year, said in a regulatory filing that the potential issue is tied to internal controls related to its IT operations. Specifically, the matter is tied to “logical access for […]
Longview in Illinois to buy Bank of Chestnut
Longview Community Bank in Mount Pulaski, Ill., has agreed to buy Bank of Chestnut in Chestnut, Ill. The $68.3 million-asset Longview filed an application with the Federal Deposit Insurance Corp. on March 1 to buy the $20.2 million-asset Bank of Chestnut. The price wasn’t disclosed. Bank of Chestnut said on its website that it “will […]
First Fidelity in Oklahoma launches BaaS platform
First Fidelity Bank in Oklahoma City has started offering a Banking-as-a-Service product. The $2.7 billion-asset First Fidelity said in a press release that it developed the BaaS product with Episode Six, a payments infrastructure provider in Austin, Texas. Unifimoney, a digital wealth management platform for community banks and credit unions, is First Fidelity’s first BaaS […]
CFPB: BNPL users more likely to show signs of financial distress
Buy Now, Pay Later borrowers are more likely to show signs of financial distress compared to non-users, according to a new report from the Consumer Financial Protection Bureau. The CFPB said in the report that BNPL users are more likely to also be active users of other credit products such as credit cards, personal loans […]
Wintrust latest bank to cut consumer overdraft fees
Add another regional bank to the list of financial institutions doing away with overdraft fees for consumer accounts. Wintrust Financial in Rosemont, Ill., said in a press release that it also eliminated item return fees. Business accounts will remain under the existing overdraft and item return fee structure. “Given the number of ways to engage […]
Avidia hires Rockland Trust exec as next CEO
Avidia Bank in Hudson, Mass., will soon have a new president and CEO. The $2.5 billion-asset bank said in a press release that it had hired Rob Cozzone, chief operating officer from Rockland Trust, to succeed Mark O’Connell when he retires in May. “Avidia’s genuine commitment to the community and its tradition of […]