Downs, Kan., has had two locally based banks for many years, according to the Federal Deposit Insurance Corp.'s website. One dates to 1892, and the other to 1919.

A group of investment firms has forced American Bancorp. into liquidation over unpaid trust-preferred debt. Creditors have threatened to go this route before but this is the first time any have followed through, serving as an ominous precedent for the up to 300 banks in danger of defaulting on the hybrid securities.

Mercantile Bank (MBWM) in Grand Rapids, Mich., has finally completed its acquisition of Firstbank (FBMI) in Alma, Mich.

Deposits and assets have fallen, and some customers and employees have fled, while Hudson City in Paramus, N.J., has been stuck in an M&A limbo. But the situation might save buyer M&T Bank some headaches later — if it can just close the deal.

SunTrust Banks (STI) finalized the sale of its asset management unit RidgeWorth Investments on Monday for $265 million.

A breakdown of M&A announcements in the financial services industry for the week ended May 31.

The Seminole Tribe of Florida is reportedly seeking approval to form a bank and buy Valley Bank in Fort Lauderdale, Fla.

NBT Bancorp in Norwich, N.Y., has prepaid about $165 million in Federal Home Loan Bank borrowings.

The Office of the Comptroller of the Currency has closed Slavie Federal Savings Bank in Bel Air, Md.

The emergence of several regional banks in California could prompt smaller institutions to weigh their M&A options. Higher operating costs and limited revenue opportunities could also force more consolidation in the state.

Independent Bank Group (IBTX) in McKinney, Texas, is reportedly in talks to buy Houston Community Bank.

First Savings Bank of Perkasie in Pennsylvania has acquired investment advisor Longview Capital Management in Wilmington, Del.

Eastern Virginia Bankshares (EVBS) said Thursday that it has agreed to acquire Virginia Company Bank (VGNA) for $9.2 million in stock and cash.

Check's technology, with Intuit's marketing budget behind it, could shape consumers' expectations of bill pay through their financial institutions and inspire entrepreneurs to cook up similar software to disintermediate banks.

Legal experts are becoming increasingly concerned that federal judges are questioning the right of a lender of secondary creditor to bid the full value of claims in Chapter 11 cases. For banks looking at bankruptcy, this development provides more encouragement to settle with certain debtholders before seeking legal protection.

The National Credit Union Administration has approved the sale of Flint River National Bank in Camilla, Ga., to Five Star Credit Union in Dothan, Ala.

Solera National Bancorp (SLRK) lost its proxy battle at the ballot box, though the Lakewood, Colo., company still hopes it can win in the courtroom.

The Arkansas company has been aggressive this year, agreeing to buy banks with a total of $3.4 billion in assets. The buying spree is partially driven by a currency lifted by a bankruptcy deal Simmons First completed last year.

United Bank in Zebulon, Ga., has agreed to acquire Monroe County Bank in Forsyth, Ga.

Simmons First National (SFNC) in Pine Bluff, Ark., has agreed to buy Liberty Bancshares in Springfield, Mo.