First National Bank of New York is selling to Bridge Bancorp 18 months after its recapitalization because additional capital was elusive. For Bridge, the deal expands its reach closer to New York City. Similar scenarios will happen elsewhere.

Pulaski Financial (PULB) in St. Louis is losing the president of its mortgage division.

O'Neill, a co-founder of Sandler O'Neill & Partners, knows skeptics are questioning his plan to start an investment bank. But there are thousands of banks and they will always need M&A advice, he says.

The Federal Deposit Insurance Corp. reported continued positive signs about the health of its insurance fund, and said improvement in the industry has also meant lower premiums for some institutions.

The Federal Deposit Insurance Corp. told banks under its watch to prioritize "prudent interest rate risk oversight."

A wave of management changes at Korean-American banks highlights the difficulties of filling key posts in a niche banking industry.

The Federal Reserve Board has freed Bank Hapoalim from an order that had required the Israeli bank to tighten its anti-money laundering oversight.

Huntington Bancorp (HBAN) in Columbus, Ohio, has appointed a new leader of its market in southern Ohio and Kentucky.

A group that includes the co-founder of Sandler O'Neill & Partners has started a new investment bank aimed at community and regional banks.

A well-structured mortgage business will generate strong revenues that can help offset declines elsewhere, regulatory challenges and interest rate volatility notwithstanding.

Selecting a property, hiring an architect, building designers, interiors, vendors and technology providers all encompass a project that amounts to a two-year business interruption. It does nothing to attract a client base.

The fourth-generation president of NexTier Bank in Butler, Pa., has resigned in order to accept a senior position with the Federal Home Loan Bank of Pittsburgh.

First National Community Bancorp. (FNCB) in Dunmore, Pa., has promoted three executives.

The Congressional Black Caucus Foundation is giving $1 million apiece to five African American-owned banks in an effort to create more lending opportunities for people and businesses in minority communities.

A breakdown of M&A announcements in the financial services industry for the week ended Oct. 5

The alarm blaring in the New York headquarters of Amalgamated Bank, where the Democratic National Committee and Occupy Wall Street are clients, didn't bother the two pinstriped executives sitting still with legs crossed.

Community bankers should opt out of the requirement to deduct unrealized gains and losses from AOCI; be aware of the challenges and opportunities that Basel III creates for M&A and capital raising; and stay on guard for changes to risk weighting of mortgages, experts say.

Several community banks are scrambling to address Tarp balances, either by selling or refinancing, as the dividend rate on those shares is set to nearly double.

The Treasury Department plans to auction stakes in eight more banks as it continues winding down the Troubled Asset Relief Program.

Jacksonville Bancorp in Florida has closed the sale of $5 million worth of common stock.