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.
Colorado state regulators on Friday closed the $31.7 million-asset Premier Bank in Denver.
Paring back branch networks is a quick way to cut costs. But executives at large regionals are reluctant to make such cuts until they have found a way to thrive at other delivery channels.
A federal court has stopped the operations and froze the assets of a national debt relief telemarketing business that is under investigation by the Federal Trade Commission and the state of Florida.
Nearly 85% of the acquisitions announced this year have involved sellers with $500 million or less in assets. Investment bankers expect more of the same in the final six months of this year.
Banks have faced increased scrutiny of their treatment of customers since the creation of the Consumer Financial Protection Bureau, and BB&T and others have proven that the process can be managed. Old fights with regulators can be put in the past if banks work hard at it.
Community banks get almost half of their service charges from overdraft fees. That could become problematic as regulators continue to look into the issue.
Steve Apodaca, who recently joined the American Bankers Association, hopes to help farmers navigate falling commodity prices, compete against the Farm Credit System and find ways to lend on new farming technology.
Executives have taken a wide range of approaches to deal with the prolonged period of low interest rates and the risks associated with their eventual rise. Some of those balance-sheet strategies have cut into banks' profitability and thus their efficiency.
The company, once in the crosshairs of a community group for how it complied with the Community Reinvestment Act, is aiming to raise $200 million with other banks for a fund that will work with local leaders to identify the best way to invest in low-income and underserved neighborhoods.
Many community banks are trying to determine the right balance of in-house staff and outsourced assistance in the area of risk management. Cost cutting and regulatory oversight loom large over such decisions.
Deals are still getting done in California, even though water issues continue to plague the state's economy. Still, buyers are finding themselves conducting more extensive due diligence to vet the markets and loan concentrations of targets.
The Salt Lake City company is targeting an efficiency ratio more in line with other regional banks by closing branches and finding ways to boost revenue. Zions hopes its efforts will reduce annual pretax expenses by $120 million by 2017.
Valley National Bancorp in Wayne, N.J., announced its second deal in Florida, a state that has been difficult for other out-of-state banks to enter.
The Salt Lake City company was a prolific acquirer through the 1990s but has been quiet on the M&A front for several years. It's likely to stay that way in the near term, Chairman and CEO Harris Simmons said.
Several Puerto Rican banks are dealing with a sour participation to a major utility on the island. The creditor like the Puerto Rican government is barred from filing for bankruptcy, complicating matters for its lenders.
The Miami area's economy is on the rebound and expanding beyond sun and fun. A new influx of money, investors and customers with international ties could feed local banks' balance sheets and top-line growth.
Top-performing community banks have found different ways to provide double-digit returns, despite numerous challenges facing the banking industry.
As more community banks switch to a universal banker model, they are also finding that it can take a year or more to properly train those employees.
During Monday's first-quarter earnings call, Zions executives took a moment to thank and tease CFO Doyle Arnold before he retires.
The Georgia company has been cutting costs, while reinvesting funds in new businesses and technology. While the moves are doing little to increase near-term return on assets, they could help Synovus improve its longer-term performance.