Banking

"Nobody really paid attention" when the technology for algorithmic portfolio management and investment advice was developed five years ago, says Gauthier Vincent of Deloitte. But now that robo startups are all the rage, retail banks want in.

Nearly all publicly traded equities and a majority of bonds are owned not by the investors themselves but by a little-known entity called Cede & Co. This attenuation of property rights creates systemic risk, but an effort is underway to transform the system.

Brent Beardall, who has been with Washington Federal since 2001, was named president of the $14.8 billion-asset company and its primary banking unit and retains his job as chief banking officer.

United Community Banks in Blairsville, Ga., reported higher quarterly gains spurred by fee revenue.

As if high default costs haven't been challenging enough for mortgage servicers, a growing number of seriously delinquent loans are Federal Housing Administration products, which require significant upfront investment to resolve.

Suffolk Bancorp in New York, which recently agreed to be sold to People's United Financial, discouraged several suitors from bidding due to concerns about concentrations of commercial real estate loans at those banks. The disclosures highlight the challenges that banks with heavy CRE exposure could face — as buyers or sellers — if they want to do deals.

Valley National Bancorp in Wayne, N.J., reported higher quarterly profit because of loan sales and increases in other fees.

BOK Financial in Tulsa, Okla., reported lower quarterly profit that reflected a still-elevated loan-loss provision.

First Commonwealth Financial in Indiana, Pa., has agreed to buy all 13 branches being divested by Huntington Bancshares as part of the approval to acquire FirstMerit.

More than 40% of consumers with complaints about debt collections say they were asked to pay debts they didn't owe. There are a host of reasons for the problem, including inscrutable legal disclosures.

Banner Corp. in Walla Walla, Wash., reported higher quarterly earnings as it continued to benefit from a recent acquisition.

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.

One of the ostensible selling points of blockchain technology is its potential to bring greater transparency to financial markets. But this feature has turned out to be a bug for the institutions that would use the technology.

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.