Jackie Stewart is the executive editor of American Banker Magazine. Previously, she covered breaking news, community banks and mergers and acquisitions for American Banker before being named as the managing editor of the Credit Union Journal. After graduating from Northwestern University in 2006, Jackie taught for two years in the Bronx, N.Y., through Teach for America.
Foreign banks looking to buy a U.S. institution long faced tough scrutiny from the Federal Reserve, and the financial crisis has only made the process harder.
The long-delayed approval of the merger of M&T and Hudson City should have been a bright spot in postcrisis M&A, but a small footnote from the Fed quickly reminded bankers that dealmaking will remain a demanding process.
While banks have significantly decreased their problem assets from their 2010 peak, sour credits remain much higher than in 2006. A number of banks have been reluctant to sell these assets because of low interest rates and a struggle to find better investments.
By locking up key clients, minimizing employee attrition and embracing innovation, Margaret Keane has made all the right moves in preparing Synchrony Financial to stand on its own.
Activity at credit unions has been on the rise since the Bank Transfer Day movement in November 2011. It remains to be seen, however, if credit unions can succeed at keeping many of those relationships.
Banks are closing branches and relying more heavily on technology to serve customers. Concerns that online and mobile banking don't reach all customers could leave banks open to allegations of discrimination.
Community banks could be vulnerable to increased funding costs, particularly rates tied to retail deposits. Technology, and improved modeling, could help them hold onto more deposits.
Talented lenders and anxious clients should expect a full-court press from Pennsylvania's community banks as they look to take market share from of the state's newcomer.
Suncrest Bank is hoping that its team of experienced executives, combined with organic growth and acquisitions, will help more than double its assets in the next few years.
Traditional gadflies are again pressing banks to find buyers. They could soon be joined by less vocal investors who still know how to put pressure on executives and directors.
Stock fluctuations will fuel investment banking fees in the short run, but a prolonged shock would complicate bank M&A and could tighten margins, crimp wealth management fees and present other risks.
The Wisconsin company hasn't bought a bank since 2007. The potential for unforeseen regulatory snags and scrutiny from community groups have the company's conservative management team biding their time.
Cascade Bancorp took less than two weeks to integrate its last acquisition, and CEO Terry Zink explains one of the big reasons: officials at the Oregon bank spent months beforehand with an outside firm practicing the conversion.
First Bancorp, OFG Bancorp and Popular Inc. have been trimming exposure to central government loans in recent years to limit their exposure to a financial crisis. Most still bank the island's municipalities, though they have strict underwriting and collateral to protect their interests.
A high percentage of loans to oil and gas firms are large and syndicated. As a result, more shared loans are becoming problematic for participating lenders.
Lenders have increasingly turned to niche businesses, such as equipment financing, to differentiate themselves from competitors. Some banks, like Bank of the Cascades in Oregon, are choosing complicated specialties like aircraft financing that may scare off potential rivals.
Suncrest Bank in Visalia, Calif., has agreed to buy Sutter Community Bank in Yuba City, Calif., for $9.4 million in stock.
"Stay tuned" for the Houston bank's first deal since April 2014, CEO David Zalman tells investors.
A spike in core deposits increased funding costs and contributed to margin compression at Synovus in the second quarter. But the company could benefit from locking in liquidity now, particularly when interest rates rise.
Synovus Financial in Columbus, Ga., reported higher second-quarter income tied to a lower loan-loss provision.