Three days before the government stepped in to take over Fannie Mae and Freddie Mac, a small Tennessee thrift said it was forced to sell itself because its investment in the government-sponsored enterprises had soured and depleted its capital.

Chemical Financial Corp. of Midland, Mich., said Monday that it will take an after-tax charge of $7.2 million, or 30 cents per share, against its third quarter earnings in relation to what it said was a fraudulent commercial loan.

Taylor Capital Group Inc. in Rosemont, Ill., said that it has raised $120 million in a private placement and subordinated debt issuance, and that it would use the proceeds to fuel growth and strengthen its balance sheet.

With three weeks left in the third quarter, already more bank and thrift mergers have been called off this year than in the last two years combined.

Shares of Bridge Capital Holdings fell sharply Friday after the San Jose, Calif., company restated its second-quarter earnings to show a $1.3 million loss.

Columbia Bancorp in The Dalles, Ore., is shuttering its mortgage division and slashing about 18% of its work force in response to the housing slowdown in the Pacific Northwest, though analysts say it remains exposed to credit deterioration in other sectors.

Capitol Bancorp Ltd. in Lansing, Mich., plans to open a bank in Pittsburgh, which would be only the fourth start-up for that region in 40 years, according to the Pittsburgh Business Times.

Valley National Bancorp of Wayne, N.J., said late Wednesday that the fair market value of its Fannie Mae and Freddie Mac preferred stock declined by $40 million from June 30 to Sept. 2.

The community banks that use legacy systems for core technology applications are in for some challenging times.

Bank of Internet USA has never hidden its contrarian streak.

The Office of Thrift Supervision has notified BankUnited Financial Corp. that its regulatory capital status was changed from "well capitalized" to "adequately capitalized."

LEWISBURG, Penn. – Town officials this week approved a plan by M-C FCU to redevelop part of the former La-Z-Boy furniture factory and showroom into a branch.

NORTH MEDFORD, Ore. – Rogue FCU yesterday broke ground on a new 14,000-square-foot service center that will house its mortgage and business loan officers, as well as investment and insurance representatives.

First Merchants Corp. of Muncie, Ind., said Wednesday that it is acquiring the $890 million-asset Lincoln Bancorp of Plainfield to fill out its Indianapolis operations.

Jeanne Delaney Hubbard has resigned as chairwoman, president, and chief executive officer of Abigail Adams National Bancorp Inc. in Washington.

Mercantile Commercial Capital LLC of Florida, which specializes in Small Business Administration 504 loans, often touts the fact that it is not a bank. But eager for cheap deposits to fund its growth, the privately held lender is applying to become one.

MIDWEST

FAIRFAX, Va. – A story in yesterday’s Credit Union Journal Daily Briefing incorrectly stated the date for a grand opening for Apple FCU’s newest branch. It is Saturday, Sept. 6.

YORK, Penn. – First Capital FCU is building a “green” branch here that will include such environmental initiatives as reserved parking for fuel efficient vehicles, a rain water capture toilet system, and LED light fixtures.

Two weeks after being forced to relinquish his chairmanship, Robert J. Weatherbie has resigned as the chief executive officer of Team Financial Inc. in Paola, Kan.