Paul Davis

The loan participation has been flagged for potentially fraudulent activity.

First Community Bankshares will buy Highlands Bankshares for $91 million.

The company says its exposure involves a participation loan to a business customer for which it was the originator.

The unnamed borrower was the victim of an alleged scam by another company.

The deal between First Defiance and United Community would create a $6 billion-asset bank.

AltaPacific's recent agreement to sell itself to Banner Corp. came after it started down a list 14 financial institutions last year, held discussions with at least nine suitors, and considered deals with a credit union and a business development company.

Bank Iowa will gain a branch in a neighboring market when it completes the acquisition.

Farmers will pay $40 million for the bank, which is in an affluent area in northeast Ohio.

The company will pay $195 million for its first retail operations in the city.

The Plano bank, which is being sold to Prosperity Bancshares in one of the industry's biggest M&A deals this year, was also worried about credit quality, a regulatory filing shows.