Jim Dobbs

ChoiceOne Financial Services would pay about $180 million to acquire Fentura Financial in a bid to expand in Detroit's suburbs. The deal would create a bank with more than $4 billion of assets.

The $73.5 million all-stock deal, slated to close early in 2025, would create a bank with more than $3 billion of assets.

The Oklahoma-based bank also struck an upbeat tone on economic conditions and credit quality after it reported a sharp quarter-over-quarter increase in net income.

The Alabama-based bank also said that its outlook for net interest income is brightening. Several other regional banks have offered similarly upbeat guidance in recent days.

The Georgia-based bank recorded a $257 million hit after unloading a bundle of securities that it expects to redeploy into higher-yielding assets. It also forecast a resumption of loan growth in the second half of the year.

The top-performing banks with between $10 billion and $50 billion of assets boasted relatively strong loan portfolios and expense control.

The Pittsburgh-based superregional bank reported a small quarter-over-quarter advance in net interest income, and it expects loan growth to pick up in the second half of the year. PNC, which announced job cuts last year, also said that it has identified an additional $25 million in cost savings.

After its planned sale to a larger competitor fell through, the renamed bank plans to expand into new markets, starting with St. Louis.

Higher funding costs, lower loan demand and the potential for increased credit costs continue to drag on the sector heading into second-quarter earnings season.

With the Federal Reserve holding interest rates at elevated levels through the first half of the year, analysts are sharpening their collective focus on possible fallout from high deposit and borrowing costs.