Cap Markets

CoBiz Financial in Denver plans to issue up subordinated debt to redeem its shares in the Small Business Lending Fund.

The $20.4 billion-asset company said in a news release that it could offer fixed-to-floating rate non-cumulative perpetual preferred stock, according to a shelf registration filed with the Securities and Exchange Commission.

Atlantic Coast Financial in Jacksonville, Fla., is in talks to restructure its debt and has reversed the valuation allowance on a deferred tax asset.

BOK Financial in Tulsa, Okla., and Webster Financial in Waterbury, Conn., each reported that its Tier 1 common equity ratio would remain above regulators' minimum guideline, as regional banks continue to disclose Dodd-Frank Act stress-test results.

Executives have taken a wide range of approaches to deal with the prolonged period of low interest rates and the risks associated with their eventual rise. Some of those balance-sheet strategies have cut into banks' profitability and thus their efficiency.

First Resource Bank in Exton, Pa., plans to raise $6 million through a combination of common stock and subordinated debt to raise funds to redeem most of its Small Business Lending Fund preferred shares.

The Fed finalized a rule increasing an asset-size threshold that lets smaller banks finance deals with up to 75% in debt. That benefit, along with an exemption from Basel III capital rules, could prompt some bankers to second-guess short-term growth as they weigh their options.

New servicing standards issued by the government-sponsored enterprises are unlikely to pose a hurdle for the biggest nonbank players in the market, but small servicers could find it more challenging.

The Salt Lake City company was a prolific acquirer through the 1990s but has been quiet on the M&A front for several years. It's likely to stay that way in the near term, Chairman and CEO Harris Simmons said.

Several Puerto Rican banks are dealing with a sour participation to a major utility on the island. The creditor — like the Puerto Rican government — is barred from filing for bankruptcy, complicating matters for its lenders.