New York

New York's banking regulator unleashed a verbal assault on nonbank servicer Ocwen Financial Wednesday, saying the company's use of technology to better handle distressed loans is "too good to be true."

As Manhattan developers plan millions of square feet of office towers featuring the most modern amenities, some of their biggest potential tenants — banks — have decided they're better off staying in their current homes.

Citigroup (NYSE: C) and insurance company Assurant (AZ) have agreed to pay $110 million to settle charges that it forced thousands of homeowners to purchase expensive property insurance in order to profit from kickbacks and commissions.

JPMorgan Chase & Co. (JPM) will pay $614 million to settle claims it improperly approved Federal Housing Administration and Veterans Affairs loans that weren't eligible for insurance from those agencies because they didn't meet underwriting requirements.

Kearny Financial Corp. (KRNY) in Fairfield, N.J., has agreed to buy Atlas Bank in Brooklyn, N.Y.

Astorial Financial (AF) in Lake Success, N.Y., reported higher quarterly profits because of improved credit quality.

The online lender Western Sky and the online loan servicer CashCall agreed to pay $1.5 million in penalties and stop collecting interest on outstanding loans to New York borrowers in a proposed settlement with New York Attorney General Eric Schneiderman.

First Niagara Financial Group (FNFG) in Buffalo, N.Y., met quarterly estimates and announced a plan to invest heavily in technological improvements as it moves beyond its recent phase of rapid growth.

TrustCo Bank (TRST) in Glenville, N.Y., reported higher quarterly profits because of loan growth and improved asset quality.

The $22.4 billion-asset company reported a profit of $64.3 million, or $1.34 per share, a 28% increase from the same quarter in 2012.

Arrow Financial (AROW) in Glens Falls, N.Y., posted higher earnings in the fourth quarter as it benefited from lower expenses related interest-earning deposits.

M&T Bank (MTB) reported fourth-quarter earnings well short of analysts' estimates, capping a challenging year in which regulatory troubles led to spiraling costs.

Citigroup officials were granted access Wednesday to the Manhattan site of a 30-hour, six-alarm fire that destroyed a two-story branch over the weekend.

Tompkins Financial (TMP) in Ithaca, N.Y., has promoted Scott Gruber to chief executive of its subsidiary VIST Bank in Wyomissing, Pa. He succeeded Robert Davis, who retired as chief executive on Dec. 31.

Pathfinder Bancorp (PBHC) in Oswego, N.Y., has named longtime director Chris Burritt as its chairman.

Buoyed by its success on the West Coast, Operation Hope is partnering with the likes of SunTrust and Popular Community Bank to set up its financial literacy centers in such cities as Memphis, Atlanta, Washington and New York.

In a wide-ranging interview, Carver Bancorp CEO Deborah Wright says she expects 2014 to see the New York bank target more underbanked customers, expand lending to nonprofits and serve as a beacon of hope to other minority-owned banks.

CMS Bancorp (CMSB) in White Plains, N.Y., plans to terminate its sale to Customers Bancorp (CUBI) in Wyomissing, Pa.

Hudson Valley Holding (HVB) in Yonkers, N.Y., has hired a former regulator to be chief risk officer for its bank.

First Niagara Financial (FNFG) in Buffalo, N.Y., didn't have to look far to find its next president and chief executive, even though the search process lasted nine months.