Retail & Commercial

UMB Financial in Kansas City, Mo., on Tuesday reported higher than expected quarterly profits due to loan growth from a recent acquisition.

First Interstate BancSystem in Billings, Mont., reported higher quarterly profit tied to loan growth and increased fee income.

Deposit growth and loan sales gave Flagstar Bancorp's second-quarter profit a lift. The $13.7 billion-asset company said its net income in the three months rose 2.1% to $47 million, or 66 cents a share, compared with last year's second quarter.

The $1.4 billion-asset company said in a press release Tuesday that it had agreed to buy Oak Mortgage Co. in Marlton, N.J.

The Consumer Financial Protection Bureau is set to unveil a sweeping proposal on debt collection practices this week that would force banks and credit card companies for the first time to comply with federal restrictions. It said the plan would put an end to some of the most egregious practices in the $13.7 billion debt collection industry.

The costs to extend buyouts to employees cut into Trustmark's second-quarter profit, as did a drop in mortgage banking.

The combination of higher regulatory expenses andreduced income from interchange fees is taking a toll on the profitability of banks with $10 billion to $50 billion of assets.

The $2.1 billion-asset company said in a press release Tuesday that its second-quarter earnings rose 4.7% from a year earlier to $3 million, or 16 cents a share.

In the years after the financial crisis, as banks were collapsing left and right, the Federal Deposit Insurance Corp. agreed to cover losses tied to the sale of many failed institutions. Today, loss-share portfolios are shrinking, decreasing by 80% from early 2011, to $18.8 billion at March 31, as many banks negotiate early terminations of their FDIC agreements. Here are some notable banks that got out of their pacts.

Despite the hurdles facing technology giants in offering payments services, they remain keenly interested in the sector and more traditional service providers should stay on alert.