Finance

Fed Chairman Jerome Powell brushed off concerns that rapidly tightening monetary policy could disrupt the financial system. Some economists and policy experts beg to differ, raising concerns about loan defaults or even the collapse of a key institution or counterparty.

The San Antonio-based bank reported 17% deposit growth during the second quarter. CEO Phil Green was critical of competitors that resist paying more to depositors, saying: “We don’t think that’s a credible position.”

The Maryland bank has lost 13% of its credit card customer base in the past year amid a flurry of marketing activity by newer players. But it is refusing to panic.

The New York City bank is forecasting that consumer lending will come under pressure amid higher interest rates and concerns about the economy. “That said, still putting forth 8%-10% loan growth is significantly better than where the industry is,” said CEO Ira Robbins.

The San Francisco company is relying more on banks and credit unions, and its own acquisition of a bank last year, to fund its consumer lending business. The flexibility has proved helpful as demand from other loan buyers wanes.

The Salt Lake City company benefited during the second quarter from the Federal Reserve’s rate increases, partially offsetting higher expenses and falling noninterest income.

The company says it’s making progress on other parts of its business-model revamp — including a shift to lower-cost deposit sources — while regulators weigh its application to buy Flagstar Bancorp in Troy, Michigan.

Energy loan balances at the Oklahoma bank grew 6% from the prior quarter, and unfunded commitments to companies in the sector increased 11%. “This has been a really historic opportunity for BOK Financial Financial to take market share,” said CEO Stacy Kymes.

Indiana-based Old National Bancorp says it has invested $1 billion in floors, collars and other credit hedges in case of a sudden shift in interest rate policy.

Credit Suisse Group plans to announce the departure of Chief Executive Thomas Gottstein, The Wall Street Journal reported, part of efforts to turn around the struggling company. 

Executives said the company may take a more conservative approach when it comes to adding new loans to its books in anticipation of an economic slowdown.

During the bank’s second-quarter earnings call, Cort O'Haver, president and CEO, said Umpqua and Columbia still hadn’t received an approval yet but were hoping to complete the integration next year.

Huntington Bancshares' net charge-off rate was 0.03% on June 30, which may be the 156-year-old company's lowest quarterly level ever, according to Chief Executive Steve Steinour. That contributed to its record $539 million 2Q profit.

The McLean, Virginia, company is starting to “trim around the edges” of its auto portfolio, CEO Richard Fairbank said. That move stands in contrast with Capital One's leaning into its credit card business, which helped push marketing spending above $1 billion.

The Cincinnati bank plans to lean into its retail expansion in the southeastern U.S. after its deposits fell by $6 billion from the first quarter.

The Pittsburgh company beat analysts’ expectations and reported double-digit loan growth even excluding assets added in a recent acquisition. A pending deal in North Carolina would provide it a ready source of low-cost deposits in a rising-rate environment, the CEO says.

New types of financial products designed for the underserved can also be susceptible to scamsters, Juniper Research found, mirroring the Federal Trade Commission's concerns.

Bank of America is keeping to its original hiring plans despite challenging economic conditions that have prompted others to pull back, Chief Executive Brian Moynihan said.

The Cleveland company says a second-quarter decline in investment banking and debt placement revenues won’t change its plans to keep hiring bankers to expand that business.

The Georgia bank said inflationary pressures and interest rate hikes could erode interest among borrowers, particularly in the commercial real estate business. Total loans grew at a 12% clip in the second quarter.