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 up to $250,000 are covered, to unlimited coverage. The FDIC said it believes having different

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 Signature subordinated debt when the bank collapsed in March. “As closely as we monitor our

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 a market value of $733.8 million. Net proceeds were used to pay down overnight borrowings

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 the third de novo in Houston in the past four years. Gulf Capital Bank opened

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 one branch, $21 million of deposits and $11 million of loans. The acquisition “is part

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 the $1.2 billion-asset LINKBANCORP in Camp Hill, Pa., for $167.8 million. Partners’ began the 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 nonaccrual and delinquent mortgages as held for sale. The company said it has received several

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 company lost $398,000 in the fourth quarter and earned $5.4 million a year earlier. “We