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. […]
HarborOne eliminates jobs as part of cost-cutting push
HarborOne Bancorp in Brockton, Mass., cut jobs in its mortgage division and will close a branch as part of a broader cost-cutting initiative. The $5.6 billion-asset company said in a press release that the layoffs in its HarborOne Mortgage business will save it $1.2 million annually. Layoffs elsewhere will save another $2.9 million a year. […]
First Internet’s 1Q loss reflects mortgage exit, C&I writedown
First Internet Bancorp in Fishers, Ind., reported a net loss in the first quarter after shutting down its mortgage operations and partially charging off a commercial participation loan. The $4.7 billion-asset company lost $1.3 million, a reversal from the $11.2 million it earned a year earlier. The results included $3 million in costs tied to […]
First Interstate sold securities in 1Q for $23M loss
First Interstate BancSystem in Billings, Mont., absorbed a large hit from selling securities in the first quarter. The $31.6 billion-asset company said in a press release that its earnings fell 34% from a quarter earlier, to $56.3 million. The company lost $33.4 million a year earlier. First Interstate recorded $23.4 million in losses after selling […]
Prosperity’s 1Q deposits fell 13% from year earlier
Prosperity Bancshares in Houston reported a sharp decline in deposits during the first quarter that it attributed to public funds. The $37.8 billion-asset company said in a press release that deposits fell by 5.4% from the fourth quarter and 13.1% from a year earlier, to $27 billion. Prosperity said the total reflected a decline in […]
PacWest reports 1Q loss, plans 20% asset reduction
PacWest Bancorp in Los Angeles reported a quarterly loss that reflected a goodwill impairment charge and expenses tied to an efficiency effort. The $44.3 billion-asset company also announced plans to reduce its asset size by roughly 20% by selling loans and planned portfolio reductions. The effort comes after PacWest’s deposits fell by nearly 17% in […]
Lake Shore in New York hires new CEO
Lake Shore Bancorp in Dunkirk, N.Y., has a new CEO. The $700 million-asset company said in a press release that Kim Liddell was also named president and joined its board. He recently served as chairman, president and CEO of Delmarva Bancshares. Liddell also serves on the board of BV Financial. “We are extremely pleased to welcome Kim to […]
BankUnited deposits fell 6.5% in first quarter
BankUnited in Miami Lakes, Fla., lost $1.8 billion of deposits in the week after the failures of Silicon Valley Bank and Signature Bank. The $37.2 billion-asset bank said in a press release that it gained $245 million of deposits over the last two weeks of March. Still, total deposits fell by 6.5% in the first […]
Securities sales, legal reserve cut into Atlantic Union profit
Atlantic Union Bankshares in Richmond, Va., said a series of balance sheet moves, a legal reserve and a higher loan-loss provision cut into quarterly profit. The $21 billion-asset company’s first-quarter net income available for shareholders fell by 19.7% from a year earlier, to $32.7 million. Atlantic Union said that it sold $505.7 million of securities […]
Peoples in Ohio increased profit despite securities sales
Peoples Bancorp in Marietta, Ohio, reported improved quarterly profit despite repositioning its balance sheet and recording a loan-loss provision. The $7.3 billion-asset company said in a press release that first-quarter net income rose 13% from a year earlier, to $26.6 million. Peoples sold $96.7 million of lower-yielding securities at an after-tax loss of $1.6 million. The […]
Three community banks complete private placements
Three community banks completed private placements of common stock that collectively brought in nearly $45 million of capital. Iron Bancshares in Salisbury, Conn.; Thread Bancorp in Rogersville, Tenn.; and First Capital Bancshares in Charleston, S.C., raised capital between April 11 and April 14, according to data compiled by Performance Trust Capital Partners. The $417 million-asset […]
NBT in N.Y. wrote off sub debt investment in failed bank
NBT Bancorp in Norwich, N.Y., reported lower quarterly net income after writing off a $5 million investment in a failed bank. The $11.8 billion-asset company said in a press release that it had invested in subordinated debt for the failed institution, which it did not name. AmeriServ Financial recently disclosed that it wrote off sub […]
First Republic to cut more than a fifth of its workforce
First Republic Bank in San Francisco plans to cut 20% to 25% of its workforce. The $233 billion-asset bank said in a press release the cuts will occur in the second quarter. Other cost-cutting moves will include “significant reductions” to executive compensation, condensing corporate office space and reducing nonessential projects and activities. First Republic also […]
Tribal-owned bank in Oklahoma changes its name
First National Bank and Trust in Shawnee, Okla., is getting closer to rebranding as Sovereign Bank. While the $815 million-asset tribal-owned bank began the process on Feb. 1, signage is set to change in the coming weeks. The bank is owned by the Citizen Potawatomi Nation. The bank also updated its logo which includes the […]