Banking news roundup

March 11, 2022 3:36 PM

In this week's roundup, M&T Bank approaches an M&A milestone and has good news for 20 minority-owned businesses in southwest Philadelphia; two fintech lenders announce a merger deal; and U.S. Bank scores a WNBA partnership.

Scroll through to see what you might have missed this week in banking, mergers and acquisitions, credit unions and more.

USAA cracks top 10 in brand relevance survey

USAA in San Antonio was the only financial services company to make the top 10 in the 2022 Brand Relevance Index from Prophet, a brand and marketing consultancy. Prophet surveyed more than 13,500 consumers in the U.S., asking them which brands add the most value to their lives. USAA won recognition for trustworthiness and living up to its promise. The buy now/pay later lender Afterpay came in at No. 11 and the payments company Zelle was No. 39. — Miriam Cross

M&T Bank sets closing date for People’s United deal ...

M&T Bank in Buffalo, New York, said this week that it expects to complete its deal for People’s United Financial in Bridgeport, Connecticut, on or around April 1, with a systems conversion to follow in the third quarter. Details about the target close date and the conversion timetable were announced three days after the $7.6 billion deal received regulatory approval from the Federal Reserve. The combined organization is expected to have approximately $220 billion of assets and operate more than 1,100 branches throughout the Northeast and mid-Atlantic region. — Allissa Kline

... and gives minority-owned businesses a boost

Adobe Stock

M&T Bank awarded $250,000 in grants to 20 minority-owned businesses in southwest Philadelphia. Averaging $12,500 per business, the grants are intended to help recipients hire workers, cover operating expenses or refurbish façades in line with the city’s storefront improvement program. M&T, of Buffalo, New York, is providing another $12,000 to fund training classes offered by Entrepreneur Works, a local community development financial institution. The grant program was a partnership between the $155.1 billion-asset M&T’s Woodland Avenue branch and neighborhood community groups. “M&T wanted to do something impactful to meet the moment,” said Bernie Shields, M&T's regional president for Greater Philadelphia. “The small-business grants program is one step in the right direction — and there will be more support to follow." — John Reosti

CEO of Virginia credit union service organization retiring

Terrence McHugh, president and chief executive of the commercial lending credit union service organization Commercial Alliance in Troy, Michigan, is retiring on March 31. Under McHugh’s tenure as president and CEO since its inception in July 2004, Commercial Alliance has grown to serve more than 115 credit unions, with a loan servicing portfolio of roughly $877 million. The organization’s board of directors began its search for McHugh’s successor in November and is finalizing its choice now. — Frank Gargano

U.S. Bank becomes official bank of the WNBA

GEORGE FREY/BLOOMBERG

U.S. Bank has been named the official bank of the Women’s National Basketball Association. Under the multiyear pact, Minneapolis-based U.S. Bank will serve as official bank sponsor of marquee events including the WNBA All-Star game and draft and provide financial education to WNBA players to help prepare them for life after basketball. Financial terms of the deal were not disclosed. The $573 billion-asset unit of U.S. Bancorp is also joining a growing roster of corporate sponsors, dubbed WNBA Changemakers, supporting the league’s mission of elevating women’s sports and promoting diversity, equity and inclusion in society. Other sponsors include Nike, AT&T and Google. — Alan Kline

Nomination for Treasury diplomacy post goes to Senate

The Biden administration has sent to the Senate the nomination of Jay Shambaugh, a George Washington University professor and former advisor to the Obama administration, to fill the long-vacant role of the Treasury Department’s undersecretary for international affairs. If confirmed, Shambaugh would serve as the agency’s top diplomat at a time when the Russia-Ukraine conflict underscores the importance of the country’s international economic policy. — Claire Williams

SEC schedules vote for climate disclosure rule

The SEC is one of several regulators charged with the first phase of a joint rulemaking for the Financial Data Transparency Act.

Bloomberg News

The Securities and Exchange Commission announced it will convene on March 21 to vote on a proposed rulemaking introducing climate disclosure requirements for publicly traded companies, including banks. While climate disclosures are a central pillar of the Biden administration’s regulatory approach to managing climate risk in the financial system, banks remain concerned about the potential reporting burden of the new regime — particularly if the disclosures include Scope 3 emissions, which include the emissions made up and down a company’s value chain. — Brendan Pedersen

MeridianLink buying digital lending tech company StreetShares

Thumbnail for Video: Street Shares, small biz: banking 2018

MeridianLink, which provides cloud-based software for financial institutions, said it agreed to acquire StreetShares, a company that provides digital small-business lending technology to banks and credit unions. StreetShares was launched in 2014 as a digital lender to veteran-owned small businesses. “StreetShares’ commitment to providing lenders across the U.S. with state-of-the-art business lending capabilities, including business loans, automated decisioning, and business lines of credit, aligns with our focus on empowering more banks and credit unions to better serve consumers and communities,” Nicolaas Vlok, MeridianLink’s CEO, said in a press release. The price of the deal was not disclosed. — Miriam Cross

Customers Bank recruits chief people officer

Customers Bank in West Reading, Pennsylvania, appointed Bernard Garrigues as its new chief people officer. The $19.6 billion-asset bank said Garrigues, formerly executive vice president and chief human resources officer for the $34.9 billion-asset Webster Bank in Waterbury, Connecticut, will help lead Customer Bank’s human resources strategy in areas such as compensation, succession planning and talent management. “The leadership team is looking forward to Bernard’s focus on diversity and inclusion to advance the growth of our talented team members as we continue to enter new markets,” Sam Sidhu, Customers’ president and chief executive, said in a press release. — Frank Gargano