Jim Dobbs

When community lenders report second-quarter results next month, all eyes will be on deposit levels and funding costs. By extension, analysts expect more banks to roll out expense reduction plans to protect their bottom lines.

Through May, there were 32 U.S. bank mergers and acquisitions announced, fewer than half of the 66 deals announced over the same span of 2022. But analysts say higher costs and more regulation could spur consolidation.

The American Bankers Association's Economic Advisory Committee said access to loans is likely to further soften, while defaults and credit losses could increase in the second half of the year.

Loan demand slowed, deposit costs jumped and credit quality became vulnerable, but veteran banker Frank Sorrentino sees more positives than negatives for community banks, particularly when interest rates level off.

The top 200 publicly traded banks with less than $2 billion of assets capitalized on their strong loan portfolios and interest income. But given a shift in the economic environment and banking industry, performance challenges are expected to intensify through 2023.

The seller announced the delay to give it time to solicit more votes in favor of the deal. It plans to push a June 13 meeting to next month, when shareholders will decide whether to approve the transaction.

After shares dropped in the aftermath of recent failures, most banks demonstrated resilience and investors started to buy back into the sector.

Bankers and a key government supervisor say the downfalls of multiple regional lenders reminded regulators that traditional M&A is better for the industry than failed-bank-deals.

The parent of the $1.1 billion-asset CBI Bank & Trust said it would buy McLaughlin Holding and its SENB Bank unit.

An activist investor blasted the appointment of Andrew Cohen, saying he has long served on the Philadelphia bank's board and shares responsibility for its financial troubles.