Cap Markets

Eagle Bancorp in Bethesda, Md., has redeemed all the shares it accumulated through the Small Business Lending Fund program.

The company recently created a collateralized-debt obligation backed by bank debt, bringing to mind the types of structured investments that plagued smaller banks a few years ago. This time, StoneCastle will hold all the credit risk, instead of selling it off to banks. The CDOs are backed by relatively straightforward sub debt rather than hybrid securities.

While executives are eager to put excess capital to work, the sell-off of KeyCorp stock following the announcement of the First Niagara deal shows investors will react swiftly — and severely — when it appears a buyer has overpaid.

The Royal Bank of Scotland Group has completed its divestment of Citizens Financial of Providence, R.I.

The report from independent auditors will likely show that FHA remains below its 2% statutory minimum capital ratio, but HUD officials and outside observers still expect it to show major improvement over last year.

New York Community has long wanted a deal to push it over $50 billion of assets. While Astoria accomplishes that, it does little to diversify New York Community's geography or reduce its reliance on multifamily lending.

First Northern Community Bancorp in Dixon, Calif., has exited the Small Business Lending Fund.

First Partners Bank in Birmingham, Ala., and Highlands Bancorp in Vernon, N.J., have both issued subordinated debt, as part of their plans to exit the Small Business Lending Fund program.

Allegiance Bancshares expects to raise about $54.6 million in its initial public offering, as the Houston company priced the offering more than two years after expressing interest in going public.

The $1.5 billion-asset bank issued $25 million of subordinated notes due 2025 in a private placement. WashingtonFirst used the proceeds to redeem $8.9 million in SBLF preferred shares, which it issued to the Treasury Department in 2011.