Strategic Insights into Banking & Fintech

CFPB sues Capital One on claims it shorted depositors

CFPB sues Capital One on claims it shorted depositors

The Consumer Financial Protection Bureau has accused Capital One Financial in McLean, Va., of illegally avoiding paying more than $2 billion in interest to customers who had its high-interest savings account. The CFPB, in a lawsuit filed in U.S. District Court for the Eastern District of Virginia, claimed that the $354 billion-asset company promised depositors that its 360 Savings account provided one of the nation's "top," "best" and "highest" interest

January 14, 2025
QCR Holdings in Ill. selects new president for its Guaranty Bank

QCR Holdings in Ill. selects new president for its Guaranty Bank

Guaranty Bank has a new president. The $2 billion-asset bank, a unit of QCR Holdings in Moline, Ill., said in a press release that Becky Scorse had taken on the role. She will remain the bank's chief lending officer. “Becky’s exceptional leadership and deep understanding of our market have been instrumental in Guaranty Bank’s growth and success,” Monte McNew, Guaranty's CEO, said in the release. “Her dedication to our team,

January 13, 2025
Mechanics Bank in Calif. removes ‘interim’ from CEO’s title

Mechanics Bank in Calif. removes ‘interim’ from CEO’s title

Mechanics Bank in Walnut Creek, Calif., has removed "interim" from its CEO's title. The $17 billion-asset bank said in a press release that C.J. Johnson is its permanent president and CEO. The bank's former chief financial officer, Johnson has been interim president and CEO since February 2024. “C.J. is a strong leader who knows our business, employees and clients well,” Carl Webb, the bank's chairman, said in the release. “He

January 13, 2025
Glacier in Montana to buy Bank of Idaho for $245 million

Glacier in Montana to buy Bank of Idaho for $245 million

Glacier Bancorp in Kalispell, Mont., has agreed to buy Bank of Idaho Holding Co. in Idaho Falls. The $28.2 billion-asset Glacier said in a press release that it will pay $245.4 million in stock for the $1.3 billion-asset Bank of Idaho. The deal, which is expected to close in the second quarter, priced the seller at 191.9% of its tangible book value. Bank of Idaho has 15 branches, three mortgage

January 13, 2025
SouthState in Fla. enters sale-leaseback deal for 170 branches

SouthState in Fla. enters sale-leaseback deal for 170 branches

SouthState in Winter Haven, Fla., entered into a sale-leaseback transaction involving 170 branches. The $65 billion-asset company, which recently bought Independent Bank in Texas, said in a press release that it will sell the locations to Blue Owl Real Estate Capital for $475 million. South State said it will report a $225 million pretax gain in the first quarter, when the deal closes. The proceeds are anticipated to be used

January 13, 2025
CNB Financial to buy ESSA Bancorp in Pennsylvania

CNB Financial to buy ESSA Bancorp in Pennsylvania

CNB Financial in Clearfield, Pa., has agreed to buy ESSA Bancorp in Stroudsburg, Pa. The $6.3 billion-asset CNB said in a press release that it will pay $214 million in stock for the $2.2 billion-asset ESSA. The deal, which is expected to close in the third quarter, priced ESSA at 99% of its tangible book value. ESSA, which has 20 branches, will operate as a division of CNB Bank. CNB

January 10, 2025
First Interstate in Montana to record larger-than-expected 4Q provision

First Interstate in Montana to record larger-than-expected 4Q provision

First Interstate BancSystem in Billings, Mont., warned it will record a larger-than-expected loan-loss provision in the fourth quarter after recording a $49.3 million charge-off tied to a commercial-and-industrial loan. The company disclosed in a regulatory filing that it already had a $26.5 million specific reserve set up on Sept. 30 tied to the loan. The loan had an aggregate outstanding balance of $62.8 million on Dec. 31, and the bank's

January 10, 2025
Ally Financial announces layoffs, to exit mortgage lending

Ally Financial announces layoffs, to exit mortgage lending

Ally Financial laid off hundreds of employees while also disclosing plans to fully exit mortgage lending. The company told multiple media outlets that the cuts amount to less than 5% of its workforce. Ally aims to shut down its mortgage lending operations during the first quarter. “We remain confident in our long-term strategy and our ability to deliver compelling returns given the strong underlying trends in our core businesses,” spokesman

January 9, 2025