Carolina community lenders to merge, Fiserv adds tech to Newark arena

February 2, 2024 3:36 PM

Dogwood State Bank and Community First Bancorp plan an all-stock deal to create a $2.2 billion bank, technology firm Fiserv announces a partnership with the National Hockey League's New Jersey Devils, former Texas secretary of state will join Cullen/Frost's board and more in our weekly banking news roundup.

Carolina community lenders to merge, create $2.2 billion bank

Raleigh, North Carolina-based Dogwood State Bank said it would acquire Community First Bancorp. in Seneca, South Carolina, in an all-stock deal. The transaction is expected to close in the second half of 2024, the companies said in a joint press release. A cumulative price was not disclosed, but Community First common shareholders would receive 0.5875 of shares and each preferred shareholder would receive 64.7719 shares of Dogwood's voting common stock. Based on Dogwood's most recent capital raise of $16.4 million in March 2023 at $20 per share, the implied transaction value is $11.75 per Community First common share, the companies said. The combined company would have total assets of about $2.2 billion, total deposits of $1.8 billion and net loans of $1.7 billion. The transaction is expected to be more than 65% accretive to Dogwood's earnings per share in 2025. The buyer said initial tangible book value dilution could be earned back in one year. — Jim Dobbs

JPMorgan’s China CEO Mark Leung to retire after 25 years

JPMorgan Chase China Chief Executive Officer Mark Leung will retire from the firm at the end of the year amid increasing challenges for global lenders in the world's second-largest economy. Leung, a 25-year veteran of the bank, will stay on until the end of 2024 to help with the succession, according to an internal memo, which was confirmed by a spokesperson at the bank. Under his leadership since 2018, JPMorgan's China revenue doubled and the bank became the first foreign firm to fully own a securities business and a futures company after the nation opened its financial markets.

Leung, based in Shanghai, will be the most senior executive to step away among global banks in years in China. It comes as lenders are struggling to generate profits and are cutting jobs as China's economy sputters and geopolitical tension grows. — Cathy Chan and Chongjing Li, Bloomberg News

Coinbase hires former U.K. Chancellor Osborne in advisory role

Coinbase Global hired former U.K. Chancellor George Osborne for its advisory council as the cryptocurrency exchange battles U.S. regulators and expands in overseas markets. Crypto companies have turned to ex-politicians as they try to navigate pressures from regulators around the world. In the U.K., the Financial Conduct Authority recently imposed rules around the marketing of crypto services. Binance Holdings and Copper Technologies are among firms that have hired former U.K. officials.

Coinbase has staffed its advisory council with people ranging from national security experts to former congressmen, a testament to the various legal and regulatory issues crypto companies must contend with. They include former U.S. representative Sean Patrick Maloney as well as former Ohio state Senator Tim Ryan.

Osborne has taken jobs across the private sector since serving as U.K. chancellor from 2010 to 2016, including as partner of boutique investment bank Robey Warshaw and chair of the British Museum. He's also a visiting professor at the Stanford Graduate School of Business, according to the press release. — Philip Lagerkranser, Bloomberg News

Fiserv unit wires New Jersey sports arena for contactless payments

Atlanta-based global payments technology firm Fiserv announced a multiyear partnership with the National Hockey League's New Jersey Devils to build contactless card payment-acceptance capabilities throughout Prudential Center, the team's home arena in Newark, according to a press release. Fiserv's Clover Sport unit will wire the arena with more than 300 point-of-sale devices, plus back-office management tools, to streamline purchasing of food, beverages and other merchandise and services for fans attending Devils home games and other events. Clover Sport now provides operations support for payments at more than 50 major U.S. sports venues, the release said. — Kate Fitzgerald

First Financial in Ohio signs new community benefits deal with NCRC

First Financial Bank in Cincinnati has entered into a five-year community benefits agreement that establishes goals for loans and investments in low- to moderate-income Census tracts.

The deal with the National Community Reinvestment Coalition and other organizations follows the conclusion of an earlier community benefits agreement that ran from 2018 to 2023.

"First Financial exceeded the goals we set together in our previous CBA and agreed to continue this strategic collaboration by negotiating new commitments to low- and moderate-income communities," NCRC President and CEO Jesse Van Tol said in a press release.

"Every bank should take notice and embrace the same collaborative approach that First Financial continues to take on these issues," he added.

First Financial, which had $17.5 billion of assets as of Dec. 31, said that it achieved 192% of the $1.75 billion of loans and investments that it established as a goal under the previous agreement.

The new five-year deal establishes a $2.4 billion goal for loans and investments to low and moderate-income clients and in low- and moderate-income Census tracts. —Kevin Wack

Former Texas secretary of state to join Cullen/Frost’s board

Hope Andrade, who served as Texas secretary of state under then-Gov. Rick Perry, is joining the board of directors at San Antonio-based Cullen/Frost Bankers, where she will serve on the audit and risk committees.

"We're fortunate to add someone of Hope's experience and prestige to our board of directors," Cullen/Frost Chairman and CEO Phil Green said in a press release. "She is a longtime Texas entrepreneur and leader with a wealth of knowledge about the workings of our state. All of us look forward to having her perspective as we grow and prosper."

Andrade was Texas' first Latina secretary of state, holding that office from 2008-2012. She has also served as commissioner and chair of the Texas Department of Transportation and as a commissioner on the Texas Workforce Commission. She is a co-founder of a bipartisan consulting firm that bears her name. — Kevin Wack