LendingClub in San Francisco plans to lay off 225 employees to offset reduced marketplace revenue tied to rising interest rates. The lender said in a press release that cutting 14% of its workforce should result in annualized run-rate savings of $25 million to $30 million. The layoffs include Valerie Kay, the company's chief capital officer, according to a regulatory filing. She joined LendingClub in 2016. LendingClub said it expects to

The House Financial Services Committee has formed a new subcommittee to focus on digital assets and fintech. Rep. French Hill (R-Ark.) will chair the Subcommittee on Digital Assets, Financial Technology and Inclusion. Hill was chairman and CEO of Delta Trust and Banking when it was sold to Simmons First National in 2014. The subcommittee’s jurisdiction includes providing “clear rules of the road” to federal regulators for digital assets and developing

City National Bank in Los Angeles has agreed to commit more than $31 million to increase lending to Black and Hispanic homebuyers as part of a settlement with the Department of Justice. The $90.7 billion-asset unit of Royal Bank of Canada was accused of violated the Fair Housing Act by redlining, the DoJ said in a press release. City National, which denied wrongdoing, also accepted a five-year consent order that

The management team at Prosperity Bancshares in Houston had a busy summer. The $37.8 billion-asset company’s executives juggled negotiations and due diligence for its pending purchases of Lone Star State Bancshares in Lubbock, Texas, and First Bancshares of Texas in Midland. Prosperity announced in October that it would buy both companies for a total of $570 million. Lone Star’s first contact with Prosperity predated the onset of the Covid pandemic,

Centier Bank in Merrillville, Ind., latest promotion continues a longstanding practice at the family-owned bank. The $6.3 billion-asset bank said in a press release that Chris Campbell had become its president. He succeeded Michael Schrage, who remains chairman and CEO. Schrage, who succeeded his father as bank president in the late 1970s, is Campbell’s father-in-law. The bank has been family owned and operated since the 1890s. Campbell joined Centier in

Forbright Bank in Potomac, Md., has hired a veteran banker to oversee the creation of a digital bank. The $6.4 billion-asset bank said in a press release that hired Matthew Quale as its president of digital banking. Quale previously served as executive vice president of consumer banking and marketing at Texas Capital Bank. Quale was also president of Bask Bank, Texas Capital’s direct-to-consumer digital bank. Bask focuses on frequent flyers.

Wells Fargo in San Francisco plans to exit correspondent lending and reduce the size of its servicing portfolio. The $1.9 trillion-asset company said in a press release that it will shift its focus, including plans to broaden its Special Purpose Credit Program, a $150 million investment to refinance loans to minority homeowners, to include purchase loans. Wells also plans to invest another $100 million to “advance racial equity in homeownership,”

Sturdy Savings Bank in Stone Harbor, NJ, has a new CEO. The $1.3 billion-asset bank said in a press release that Gregory Matuson has also become its president. Matuson succeeded Gerald Reeves, who had held the top posts for 15 years. Matuson previously served as Study’s chief operating officer. He will also join the bank’s board. “During his tenure with Sturdy Savings Bank, Greg has proven himself to be an