Boutique investment banking firm Keefe, Bruyette & Woods had survived scandal and 9/11 but has agreed to sell itself to a rival due to some of the same shortcomings that afflict many banks.

Although bankers want full insurance for certain deposits to be extended, the Federal Deposit Insurance Corp. encouraged institutions Monday to tell customers in advance that that insurance may expire.

Umpqua Holdings (UMPQ) in Portland, Ore., is continuing to expand across California. The $11.5 billion-asset company said Monday that it plans to open a center in Templeton, Calif., in January to make loans to agricultural customers.

Bank of Hays has agreed to buy Farmers' State Bank of Jetmore, Kan.

Eagle Bancorp and Camco Financial both announced capital deals last week, but for entirely different reasons. Eagle is experiencing strong growth, while Camco is still recovering. Deal advisors say the companies represent the two types of capital raises taking place right now.

Bank of Virginia (BOVA) in Midlothian has extended its rights offering deadline because of the aftermath of Hurricane Sandy.

More than half of community bankers think they’ll be involved in a deal within the next two years, either as a buyer or a seller, according to a survey by KPMG.

The $1.3 billion-asset parent company of Orrstown Bank, which regulators ordered in March to strengthen its credit risk management practices, said Monday that Robert Coradi will oversee the company’s credit management functions.

Stifel Financial (SF) in St. Louis has agreed to buy KBW (KBW) for more than $575 million in cash and stock.

Investors are suing the former Tennessee Commerce Bank, which failed in January after becoming critically undercapitalized, for violating federal securities laws, a law firm that filed the lawsuit said Friday.

Regulators closed the $225 million-asset Heritage Bank of Florida in Lutz, and the $924 million-asset Citizens First National Bank in Princeton, Ill. The two failures were estimated to cost the FDIC a combined $111 million.

Camco Financial (CAFI) in Cambridge, Ohio, has processed the rights subscriptions for roughly $9.4 million of its common stock.

International Bancshares in Laredo, Texas, has redeemed another chunk of the money it received from the Troubled Asset Relief Program.

The California Department of Financial Institutions has lifted a memorandum of understanding against Hanmi Bank after the Los Angeles institution's condition improved.

Commerce Bancshares (CBSH) in Kansas City, Mo., will issue a special dividend ahead of a potential increase in dividend tax rates.

A changing asset mix boosted third-quarter results at Sterling Bancorp (STL) in New York. The $2.5 billion-asset company's rose 23% from a year earlier, to $5.3 million.

Under the OCC, a complex foreclosure review process is funneling hundreds of millions of dollars to administrators and advertisements. Critics charge that banks and homeowners would be far better served by a simpler program.

With financial institutions keeping interest rates lower and fees higher on new commercial hybrid accounts, institutions are, in fact, discouraging commercial clients from switching to their new products.

Fears about spikes in tax rates could lead a number of capital-heavy bank to consider one-time plans to return capital to shareholders.

Liberty Bancorp in Georgia is barred from making payments to shareholders and certain debtholders without regulatory approval.