New York

The regulatory environment could be looking brighter for New York Community Bancorp as it is poised to cross an important regulatory threshold.

New York Community Bancorp in Westbury, N.Y., reported higher third-quarter earnings after a debt repositioning last year helped its net interest income.

Community Bank System in Syracuse, N.Y., has agreed to buy Merchants Bancshares in South Burlington, Vt., for $304 million, or $44.02 a share, in cash and stock.

Bank of New York Mellon's ability to bring in new business for its massive custody business propelled its quarterly profit.

Signature Bank in New York reported a sharp decline in quarterly profits after suffering steep losses on its Chicago portfolio of taxi medallion loans.

SunTrust Banks in Atlanta has agreed to buy the multifamily lending business of Pillar Financial in New York.

Profit improved at M&T Bank in the third quarter as the Buffalo, N.Y., company expanded commercial and mortgage lending and completed the sale of a large investment-securities portfolio.

A nearly double-digit increase in net interest income helped third-quarter profit increase by 12.9% at VSB Bancorp in New York.

Berkshire Hills Bancorp in Pittsfield, Mass., plans to accelerate its growth in upstate New York by opening regional headquarters in Albany.

Community bankers say that reclassifying "reciprocal deposits" as a less risky type of deposit will help them to compete with large banks. Some deposit brokers are crying foul, arguing that the proposed legislation would put them at a competitive disadvantage. Observers, meanwhile, say the bill is so narrowly written that it would hardly affect competition.