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 […]
Silvergate in Calif. warns about capital levels
Silvergate Capital in La Jolla, Calif., warned that recent securities sales will negatively affect its regulatory capital levels and could lead to the company and its bank becoming “less than well-capitalized.” The $11.4 billion-asset Silvergate said in a filing seeking more time to file its annual report that it sold securities at a loss in […]
U.S. Bancorp invests in tokenized assets startup
U.S. Bancorp in Minneapolis has invested in Ownera, a fintech that works with tokenized assets. Ownera said in a press release that the $675 billion-asset U.S. Bancorp participated in the fintech’s Series A investment round. The amount of the investment wasn’t disclosed. Ownera is working to digitize paper-heavy and illiquid private markets for banks, asset […]
MVB in W.Va. sells fintech advisory group
MVB Financial in Fairmont, W.Va., has sold an advisory practice it bought three years earlier. The $3.1 billion-asset company said in a press release that it sold Chartwell Compliance to Ankura Consulting Group. The price wasn’t disclosed. Chartwell, founded in 2011, provides regulatory compliance, state licensing, financial crimes prevention and enterprise risk management services to […]
Luther Burbank’s balance sheet turned off buyers, filing says
Washington Federal in Seattle saw an opportunity with a bank that a number of other banks had no interest in buying. The $21.7 billion-asset Washington Federal agreed in November to buy Luther Burbank in Santa Rosa, Calif., for $654 million – a deal that valued the $8 billion-asset seller at just 97% of its tangible […]
Thread Bank in Tenn. hires exec to handle fintechs
Thread Bancorp in Brentwood, Tenn., has hired a banker from Live Oak Bank to oversee its fintech relationships. The $417 million-asset company said in a press release that it recruited Andrew Montgomery to become its director of fintech partnerships. He is responsible for identifying and building partnerships with fintech companies and enhancing the bank’s suite […]
TD, First Horizon likely to push back deal closing again
TD Bank in Toronto and First Horizon in Memphis, Tenn., are skeptical that they can complete their merger by the May 27 deadline – meaning another extension is likely. The $79 billion-asset First Horizon disclosed in a regulatory filing that TD Bank recently sent notice that it doesn’t expect to secure regulatory approvals in time. […]
WaFd spinoff raises $15M in Series A funding
Archway, a platform that was spun off from Washington Federal in Seattle, has raised $15 million of Series A funding. The platform, which helps banks modernize and personalize digital customer interactions by connecting their core banking products to web, mobile, voice and AI technologies, said in a press release that the funding round was led […]
Park National to pay $9M to settle redlining claims
Park National in Newark, Ohio, has agreed to pay $9 million to settle redlining claims. The Justice Department said in a press release that the $9.8 billion-asset company decided to resolve allegations that it engaged in “a pattern or practice of lending discrimination” around Columbus, Ohio. The complaint, filed in the U.S. District Court for […]