Michigan credit unions to merge, NYCB to enact a reverse stock split

June 28, 2024 1:43 PM

In this week's banking news roundup: Bloom Credit Union and West Michigan Credit Union aim to join forces; Long Island-based New York Community Bancorp plans a reverse stock split; Providence, Rhode Island-based Citizens Financial hires longtime California banker to lead its middle-market team; and more.

Michigan credit unions to merge, create $450 million-asset lender

Two Michigan credit unions intend to join forces. Bloom Credit Union in the city of Wyoming and West Michigan Credit Union in Grand Rapids said this week they plan to merge in 2025. The combination would form an institution with $450 million of assets and about 34,000 members.

Pending regulatory approvals, the merger would become effective April 1. Bloom CU would keep its name and operate as a division of West Michigan CU. Bloom CU CEO Joe Heintskill would become CEO of the combined organization, and West Michigan CU CEO William Keim would be president.

West Michigan CU has branches in Grand Rapids, Big Rapids, Reed City, Cadillac and Manistee. Bloom CU has two branches in Grand Rapids and one each in Wyoming, Georgetown and Coopersville. All branches will remain open, and no job cuts are planned, according to a news release. "In fact, it's more likely that we will be adding new positions over time," Heintskill said in the release. – Jim Dobbs

NYCB sets date to implement reverse stock split

New York Community Bancorp plans to enact a one-to-three reverse stock split in mid-to-late July, the Long Island-based company said this week in a press release. The split, which will consolidate every three shares of NYCB stock into one, was one of several proposals approved by shareholders earlier this month. New York Community's stock has plummeted in value since January when the company, whose loan book is heavily tilted toward commercial real estate, reported a significant quarterly loss, slashed its dividend and disclosed material weaknesses. Shares are down about 70% so far this year. The newly reorganized executive leadership team has laid out a plan to return New York Community to profitability, but it has warned that it will take time to get there. — Allissa Kline

Citizens Financial recruits California banker to lead middle-market team

Citizens Financial Group in Providence, Rhode Island, has hired longtime banker Michael Walker to lead its middle-market banking team in California. Walker, who is based in San Francisco, was most recently the head of City National Bank's national commercial banking enterprise, Citizens said in a press release. He reports to Steve Woods, the head of corporate banking at Citizens, a company spokesperson said in an email. Prior to City National, a Los Angeles-based unit of Royal Bank of Canada, Walker was U.S. Bancorp's market president in Northern California, the release said. Walker's hiring is part of Citizens' efforts to build up its presence in California. A year ago, it hired its first market president in that state while continuing to add bankers and advisors, including a team of wealth advisors that came on board in April.— Allissa Kline

Citi hires HSBC’s Matthew Hung as head of HK corporate bank

Citigroup hired former HSBC Holdings banker Matthew Hung to be its head of corporate banking for Hong Kong.

Hung replaces Joy Cheng, who was appointed head of Citi Commercial Bank for Hong Kong in February, according to an emailed statement. Hung was HSBC's head of corporate coverage for Hong Kong.

His coverage will include local corporates, public sector organizations, financial institutions and multinationals. He will report to Kaleem Rizvi, head of corporate bank for Japan, North Asia and Australia, and Aveline San, Hong Kong and Macau CEO and head of banking. Hung will also join the Hong Kong executive committee.

"His track record of working on various strategic advisory and financing transactions for blue chip companies, along with his strong client relationships, will be a great addition to Citi's leading corporate banking franchise," said Rizvi.
— Denise Wee, Bloomberg News

JPMorgan India bank CEO Singh quits before end of term

Prabdev Singh, chief executive officer of JPMorgan Chase's bank in India, has stepped down before the end of his term. Pranav Chawda, head of commercial banking for India, will expand his current responsibilities to become the head of India Corporate Banking and can confirm that PD Singh is leaving the firm, a JPMorgan representative said by email in response to queries from Bloomberg News.

Singh, popularly known as PD, had received regulatory approval in January 2023 for a three-year term as CEO of JPMorgan Chase Bank India. He had replaced Madhav Kalyan who — in October 2022 — was named head of payments for Asia Pacific.

Singh, an engineer, had worked for a decade at HSBC Holdings before joining JPMorgan in 2010, according to his LinkedIn profile. — Saikat Das, Bloomberg News

Moelis banker resigns after viral video shows him punching a woman

Senior Moelis banker Jonathan Kaye has resigned from the firm after a widely shared video showed him striking a woman in Brooklyn.

Kaye, who ran the investment bank's global business services franchise, has left the company, according to a spokesperson. His profile has also been removed from the company's website.

The banker was placed on leave shortly after the incident in Brooklyn's Park Slope neighborhood was captured in the June 8 video.

A police report filed four days after the incident by a woman, 38, stated that the punch caused a broken nose, lacerations and a black eye, and that she lost consciousness when she fell to the ground, the New York Police Department said in a statement last week.

Media reports at the time, citing anonymous sources, said that the punch followed a verbal disagreement about Israel's actions in Gaza, and that people threw liquids over Kaye, who had told them they were on the wrong side of the debate. — Liana Baker and Todd Gillespie, Bloomberg News