Illinois state regulators closed $88.9 million-asset Waukegan Savings Bank, the fortieth failure of the year nationwide and the sixth in the state.

A private-equity firm has plans to acquire a large stake in TriState Capital Holdings, a Pittsburgh company cofounded by a former state regulator.

First California CEO C.G. Kum has already received a hostile offer from PacWest's Matt Wagner, and other bidders — including U.S. Bancorp, Umpqua and City National — could join the fray.

It took more than a year for First PacTrust, which was new to the M&A game, to get banking regulators to approve its deal for Gateway Bancorp. The deal is scheduled to close in two weeks.

Across the industry, the formation of new credit problems has fallen to pre-recession levels. Assets continued to sour at a troubling pace at some banks in the second quarter of 2012, however.

City Holding of West Virginia is buying Community Financial, which had a 120% loan-to-deposit ratio at March 31. The deal allows City Holding solve an issue plaguing many community banks: how to find loans to offset record deposit growth.

Citizens Republic Bancorp Inc. (CRBC), the Michigan lender that has yet to repay a $300 million U.S. government bailout, is soliciting takeover bids from competitors, said three people with knowledge of the matter.

CertusBank has agreed to buy Myers Park Mortgage, a private mortgage company in Charlotte, N.C.

OceanFirst Financial announced Friday that its president and chief operating officer, Vito R. Nardelli, is stepping down at the end of August "to explore various professional and personal opportunities."

FHFA nixes principal reductions; Democrats seethe but bankers cheer DeMarco; end in sight for refi boom.

City Holding in Cross Lanes, W.Va., continues to bulk up in Virginia, announcing late Thursday that it is buying Community Financial in Staunton for $26.1 million in stock.

Community Bank System will close five branches in September. Three of the targeted branches are ones that First Niagara acquired from HSBC and then sold to Community Bank in July.

The banking unit of American Bancorporation in St. Paul, Minn., has plans to shutter at least its third branch of the year by the end of this month.

U.S. regulators said Thursday they will be giving homeowners who believe they may have been wrongfully foreclosed upon more time to get an independent review.

Space Coast Credit Union announced Thursday that NCUA and state regulators have approved the spin-off of its two Jacksonville branches to Alive Credit Union.

Urban Partnership Bank, a Chicago bank formed to buy ShoreBank's deposits and assets from the Federal Deposit Insurance Corp. in 2010, has agreed to buy a large branch in Chicago's South Side from Northern Trust (NTRS).

Banks are trying hard to beef up programs tied to consumer protection, thanks to the creation of the CFPB and other consumer-related regulations. But there are few people in the job market with experience in banking and consumer protection, making this a lucrative opportunity for those who are skilled at both.

BB&T is eyeing other deals and planning to open more branches in Florida after buying BankAtlantic this week, regional executive Michael Oster says.

Heartland Financial USA (HTLF) is bulking up in Wisconsin with a deal to acquire First Shares in Platteville for roughly $11 million in cash and stock.

First California Financial Group (FCAL) — under pressure from activist investors to find a buyer — hired Keefe, Bruyette & Woods (KBW) to explore a sale or other strategic options.