Jim Dobbs

The Independent Community Bankers of America wants Congress to eliminate tax exemptions for credit unions with more than $1 billion of assets, scaling back an earlier request that would have targeted the entire credit union sector.

The suburban Atlanta banks, both of which specialize in lending to Korean-American businesses, plan to merge in a $206 million cash-and-stock deal.

Bankers' surveys of commercial clients have found that corporate decision-makers are less concerned about adverse tariff effects than nervous investors.

NuMark Credit Union said it would buy Lemont National Bank. After a record-setting 2024, it's only the second such credit union-bank combination so far this year.

The KBW Nasdaq Bank Index is down more than 7% year to date. Analysts blame confusion caused by President Trump's evolving tariff policies and heightened worries about an economic downturn that could hurt banks' credit quality.

Forecasters on an American Bankers Association panel predict continued economic growth this year, though they say President Trump's tariffs have created new inflation and recession risks.

Following a record-setting 2024, only one transaction involving a credit union buying a bank has been announced so far this year. Seller concerns about regulatory approval and pushback from bank industry groups have contributed to the slowdown.

Small lenders across the country filled leadership positions, including Orrstown Financial Services and QCR Holdings.

Concentrating in narrow specialties can attract both relatively low-cost deposits and low-risk loans in an era of high interest rates and economic uncertainty, lenders say.

The Champaign, Illinois-based bank said Jeffrey Jones stepped down from his post days before it could close its acquisition of CrossFirst Bankshares. Jones' exit was not deal related, Busey said.

The Connecticut bank expects to report a $9.5 million net loss for the fourth quarter, but it said it's made headway in its efforts to cultivate investors and bolster its capital levels.

Deal advisors said the Trump administration's tariff threats and the specter of inflation have given some bankers reason to pause on acquisition plans. Momentum could still mount, but uncertainty in Washington is a detriment early in the new year.

Small lenders produced net interest margin expansion in the fourth quarter, thanks in large part to interest rate cuts in the second half of 2024. Festering inflation, however, threatens to lead to rate increases that could stall their momentum.

The superregional in Pittsburgh said banks large enough to attract its attention have yet to put themselves on the sale block. PNC's finance chief said, "We just have to be ready if and when those windows open."

Oil and gas companies are borrowing to invest in more drilling and new processing facilities to meet rising global needs for U.S. fossil fuels. Several banks said energy loan demand is expected to strengthen further this year.

Small lenders beset by the fallout from high interest rates took losses in the fourth quarter when they unloaded underperforming securities and loans. But they are reinvesting the proceeds into higher-yielding assets.

Small lenders across the country filled leadership positions, including The Peoples Savings Bank in Ohio, which promoted from within to name its first woman CEO.

The Reno, Nevada-based buyer said it would pay $64.6 million in cash and stock for Cornerstone Community Bancorp, and it expects to close the transaction in the second half of the year.

John Asbury, who is CEO of Atlantic Union Bankshares, said credit unions that compete head-to-head with for-profit banks should lose their tax-exempt status. He also called for bank regulation based on complexity rather than size.

The Virginia-based bank said the Federal Reserve signed off on its acquisition of Sandy Spring Bancorp in Maryland. The transaction was the third-largest bank deal announced in 2024. It could be finalized as soon as April.