Jim Dobbs

Banks report solid commercial and industrial loan demand, but are increasingly concerned about how soaring inflation and the specter of recession will affect their clients.

Multiple factors have slowed residential sales, tightening the market for home loans for banks and credit unions.

The Florida bank said it would pay $173 million to buy Drummond Banking, which operates 18 branches in the northern part of the state.

United Community, which bought Reliant Bancorp in Tennessee earlier this year, would deepen its presence in several Southeastern markets and expand its wealth management business with its deal for Progress Financial.

Even "lifers" are considering new jobs as financial institutions bulk up to expand into new markets.

First Citizens BancShares said its $2.2 billion acquisition of CIT Group, closed in the first quarter after months of regulatory delays, is finally coming together.

The Mississippi-based First says the deal would allow it to acquire key talent, bolster its presence in northwest Florida and expand into the Tampa area.

Although small banks and credit unions are enjoying healthier loan portfolios, they are also bracing for potential setbacks due to higher interest rates and inflation.

Noah Bank is considering proposals from an investor group and a New Jersey-based peer.

Earnings and total loans fell in the first quarter at M&T, but the Buffalo, New York, bank offered a rosier forecast for the rest of 2022. The outlook anticipates a shot in the arm from the recent acquisition of People's United Financial.

Bank of America expects 3% GDP growth this year and a 2% improvement next year, even in the face of rising rates. Consumers’ continued willingness to spend and borrow, which was evident in the bank’s first-quarter results, is a key reason for that outlook.

U.S. Bancorp and Wells Fargo both reported robust business loan volumes during the first quarter, while other large lenders reported smaller gains. Inflation is fueling more spending on technology, and companies are catching up on capital expenditures that they deferred earlier in the pandemic, according to bank executives.

As inflation increases, more companies are shifting to remote and hybrid work to get their costs under control. Landlords could face rising vacancies and tumbling revenue, leaving them behind on loan payments.

Increased interest income would boost banks’ lending profitability, but inflation and mounting expenses, along with the specter of potential recession, loom large.

VyStar Credit Union and Heritage Southeast Bank postponed to June 30 the deadline to close their merger. The $196 million deal, announced a year ago, was originally slated to close by December 2021.

The $168 million deal would mark the third acquisition of 2022 for Seacoast and continue a years-long effort to bulk up via M&A.

The acquisitive Massachusetts company said it would pay $146.5 million to acquire Randolph and its $800 million-asset subsidiary, Envision Bank.

The pace of deal activity in 2022 is far lighter than it was a year earlier. "Going forward as an industry, we're going to be more selective because of the elongated approval process,” said Jim Ryan III, CEO of Old National Bancorp. Additionally, rising interest rates have led sellers to demand bigger payouts.

The Lancaster County, Pennsylvania, institution uses a fleet of traveling branches to reach far-flung customers who largely eschew modern technology.

The two similarly named companies had planned to merge. At issue is whether Amalgamated Financial in the Big Apple violated terms of that agreement when it called off the deal in February.