City National Bank of Florida's new biz, Orrstown Financial downsizes

August 9, 2024 2:36 PM

In this week's banking news roundup: City National Bank of Florida is starting a national capital markets division, Orrstown Financial will close branches in Pennsylvania and Maryland, JPMorgan Chase unit announces in-store biometric payments and more.

City National Bank of Florida starts capital markets business

City National Bank of Florida is launching a national capital markets division, which will operate under the brand name BciCapital, the Miami, Florida-based company announced in a press release. The business will offer loan syndications, capital placement and specialty capital, the release said. The unit's managing director is Raul Llanes, who returned to City National Bank following eight years at BankUnited and about nine months at DLP Capital, according to his LinkedIn profile. The rollout is "a natural next step" for the $26 billion-asset company as it looks to become a full-service commercial bank, Vice Chairman and CEO Jorge Gonzalez said in the release. —Allissa Kline

Orrstown Financial to shutter branches in Pennsylvania, Maryland

Orrstown Financial Services in Shippensburg, Pennsylvania, said it would close six branches in Pennsylvania and Maryland in the second half of 2024. The $5 billion-asset parent of Orrstown Bank said in a regulatory filing the closures would result in a one-time pretax charge of about $534,000. But once the downsizing is completed, the company expects $1.7 million of pretax annual savings.

In July, Orrstown completed its acquisition of in-state rival Codorus Valley Bancorp, the parent of PeoplesBank in York, Pennsylvania. The all-stock deal was valued at $207 million when it was announced late last year. Banks often close overlapping branches after finalizing acquisitions to lower expenses and boost the profitability of deals.

Orrstown said in the filing its branch network and Peoples' footprint were "highly complementary," but it identified several overlapping locations. Orrstown said it would have 38 full-service branches and seven limited-service locations at the end of 2024. —Jim Dobbs

JPMorgan Chase unit launches in-store biometric payments

J.P. Morgan Payments on Tuesday announced the launch of in-store biometric payments with service provider PopID and fast-food chain Whataburger, according to a press release.

Whataburger customers, after uploading a picture of their face to the Whataburger app, can use PopID hardware to pay for purchases and participate in the retailer's rewards program. The $3.9 trillion-asset bank first piloted the technology at the Formula 1 Crypto.com Miami Grand Prix race in May 2023, and again in the second half of 2023 at a JPMorgan cafeteria.

PopID estimates that its platform reduces ordering and checkout times by up to 90 seconds and can increase ticket sizes by 4%, according to the release. —Joey Pizzolato

Credit Union 1 ventures north of the Arctic Circle

Alaska's only state-chartered credit union has announced plans to open a location in Kotzebue, Alaska, later this year. "This will be the first credit union branch north of the Arctic Circle (as far as we know!)," Credit Union 1 said in a press release on Wednesday.

Located on the edge of the Chukchi Sea in far Northwest Alaska, Kotzebue is an isolated but thriving seaside community. But despite its regional stature, Kotzebue, like many rural Alaskan communities, has limited financial service options – and, currently, only one institution has a physical location there.

"We couldn't be more thrilled to be able to offer our services in a new community like Kotzebue. As a hub for much of Northwest Alaska, the branch will enable Alaskans in nearby villages to access financial services that may not have been available to them before," said CU1 President/CEO Mark Burgess. The location is scheduled to open in late 2024. —Traci Parks

DBS picks Tan to be first female CEO of Singapore’s top bank

DBS Group Holdings said Tan Su Shan will take over from Chief Executive Officer Piyush Gupta in March, becoming the first woman to lead Southeast Asia's biggest bank.

Tan, currently head of DBS' institutional banking group, was given the additional appointment of deputy CEO, according to a statement from the Singapore bank on Wednesday. She will succeed Gupta when he retires at the next annual general meeting on March 28.

The appointment caps speculation over who will succeed Gupta, one of Asia's most high-profile bankers who has led DBS for more than 14 years. Gupta, 64, is credited with multiplying returns at the Temasek Holdings Pte-backed bank, while transforming its culture and technology to face growing competition from digital lenders. —Chanyaporn Chanjaroen, Bloomberg News

Wells Fargo hires PJT banker Kevin Healey for health care M&A

Wells Fargo has hired investment banker Kevin Healey as a managing director in its global mergers and acquisitions group focused on health care deals, according to a person with knowledge of the matter.

Healey, who most recently worked at PJT Partners, will be based in New York when he joins Wells Fargo after a period of garden leave, the person said, asking not to be identified discussing confidential information. He'll report to Jeff Hogan, Wells Fargo's global head of M&A, the person said.

A spokeswoman for San Francisco-based Wells Fargo confirmed the hire but declined to comment further.

Healey spent just shy of a decade at PJT, most recently as a managing director in the firm's strategic advisory group. He previously held roles at JPMorgan Chase, consulting firm Deloitte and General Electric, according to his LinkedIn profile. —Michelle F. Davis, Bloomberg News

U.S. guarantees Dominican bank loans in push to boost relationship

The U.S. is guaranteeing $42 million in loans by the Dominican Republic's largest bank as it pushes to boost ties and counter Chinese inroads in Latin America and the Caribbean.

The U.S. International Development Finance Corp. is providing the support to Banco de Reservas de la Republica Dominicana to support women entrepreneurs, small businesses and green lending, the agency said in a statement. The announcement came during a visit by Samantha Power, President Joe Biden's chief for humanitarian aid, and DFC deputy head Nisha Biswal.

A loan guarantee is a common form of development assistance that backstops lending to riskier borrowers by promising to take on the obligations if there's a default. The portfolio guarantees from the DFC will cover up to 50% of losses due to default and are being subsidized by the U.S. Agency for International Development, according to a DFC spokesman. — Eric Martin, Bloomberg News

The OCC names Mark Thomas chief financial officer

The Office of the Comptroller of the Currency announced that Mark Thomas will be the agency's principal deputy comptroller for management and chief financial officer. He will oversee the agency's planning and execution of its annual operating budget. In addition, Mr. Thomas is responsible for the oversight of the agency's financial systems, internal and financial controls program, travel policy and operations, and agency records management functions as well as the OCC's Office of Management's compliance and strategic planning functions.

Thomas' 20-plus years of federal service spans financial management operations and accounting, overseeing budgetary processes, government contracting and internal controls. Most recently, he served in a senior role at the Federal Deposit Insurance Corporation where he performed acquisition management and administered financial quality assurance. Prior to his federal service, he spent nearly nine years in the private sector, in retail operations management. —Traci Parks