Capital

American International Group announced $3.6 billion in new costs to fill a reserve shortfall and said it will hold an initial public offering for its mortgage insurer and sell an adviser network as Chief Executive Peter Hancock seeks to boost returns and protect his job after criticism from activist investor Carl Icahn.

Regulators and alarmists are targeting a key source of financing on which some of the best-known American companies rely.

It is too early in the Providence, R.I., bank's turnaround plan to buy another bank, CEO Bruce Van Saun says. Instead, he would rather invest in acquiring commercial, mortgage and other loan officers who can feed revenue while he tries to make the bank more efficient.

Signature Bank in New York has filed a plan to sell about $299 million in common stock.

Independent Bank Group in McKinney, Texas, has exited the Small Business Lending Fund program.

B of A executives capped a challenging year by reporting strong consumer and global lending as well as other upbeat fundamentals, but like a lot of their banking peers spent most of their earnings presentation fighting off gloomy questions about the future.

Bank chiefs should brace for a barrage of questions about economic uncertainty, if JPMorgan Chase's experience after releasing fourth-quarter results is any indication. Double-digit increases in loans and profits were not enough to stave off questions about the odds of recession, energy risks and adequacy of reserves.

Four Oaks Fincorp in Four Oaks, N.C., has refinanced $11.5 million in subordinated debt.

Having shored up capital following the financial crisis, many banks are flush with cash and in search of ways to put it to use. One option for banks that did sale-leasebacks in the past is to reacquire their branches.

Joseph Chillura, CEO of the $3.5 billion-asset USAmeriBank, runs a privately held company that should be an ideal candidate for industry consolidation. While trying to keep an open mind, Chillura seems intent on staying on the sidelines as other Florida banks strike deals.

Northway Bank in Berlin, N.H., has exited the Small Business Lending Fund.

Community Shores Bank Corp. in Muskegon, Mich., has raised about $5.3 million and has been released from an enforcement action.

Unlike the bargain-heavy aftermath of the crisis, acquisitions during the recovery have been hampered by high premiums and unsatisfactory returns.

Colony Bankcorp in Fitzgerald, Ga., has redeemed about a quarter of its shares in the Troubled Asset Relief Program.

The $390.1 million-asset company said in a press release Tuesday that it has agreed to sell common stock to institutional investors led by Patriot Financial Partners.

Customers Bancorp in Wyomissing, Pa., plans to raise $30 million in an aggregate offering of its common stock.

The $1 billion-asset holding company for Veritex Community Bank redeemed about $8 million worth of SBLF shares.

Synovus Financial in Columbus, Ga., has offered to acquire up to $100 million of its outstanding subordinated debt.

Citizens & Northern in Wellsboro, Pa., has paid off a $24 million repurchase agreement and will record a loss on the prepayment.

Birmingham Bloomfield Bancshares in Birmingham, Mich., has redeemed its shares in the Small Business Lending Fund and exited the program.