A Pennsylvania bank that's trying to expand into a new market found its chance when a competitor decided it wanted to stay closer to home.
National Penn Bank agreed to buy a branch in Topton, Pa. from Patriot
National Penn's president, Wayne R. Weidner, said the $1.4 billion-asset
"National Penn has been operating on the fringe of Topton," Mr. Weidner
Joseph W. Major, Patriot's president, said the $699 million-asset bank
National Penn has 50 branches in eight Pennsylvania counties. Patriot
The Cleveland-based bank is projecting steady growth in net interest income even as credit losses remain manageable. But Chairman and CEO Chris Gorman also said that he thinks a recession is likely.
The first-quarter increase stemmed from higher interest rates, partial charge-offs and certain problem loans, many involving commercial real estate, executives at the Dallas bank say. Further CRE deterioration is anticipated.
The Detroit-based company is exploring ways to make more consumer auto loans without running afoul of stricter capital standards that are expected from the Federal Reserve. Possible approaches include more securitizations and the use of credit risk transfers.
The House Financial Services Committee also sent to the full House two bipartisan bills, including one that would prevent large banks from opting out of having to recognize Accumulated Other Comprehensive Income in regulatory capital.
Charge-offs and nonperforming loans rose at the Georgia bank in the first quarter. But it blamed the problem on one large client and said the matter has been resolved.
Amid healthy first-quarter loan growth and improving credit quality, Discover Financial Services slashed its profits by $800 million to offset remediation costs from a 16-year period when it overcharged certain merchants.
