Michigan's ailing economy is testing banks there, but its wealthiest county is still attracting new institutions.

The Chicago investment bank Howe Barnes Hoefer & Arnett has created an investment vehicle aimed at raising the profile of small-bank stocks that have gotten scant notice from institutional investors.

New Century Bancorp in Dunn, N.C., is merging its two subsidiary banks into one to improve efficiency and profits.

First Community Bancshares in Overland Park, Kan., is expanding in Missouri by buying the $34.6 million-asset NKC Bancshares Inc. in North Kansas City, Mo.

Farmers and Merchants Bank in Stuttgart, Ark., has agreed to buy the $120 million-asset Chart Bank in Perryville, Ark., according to a local news report.

The District of Columbia City Council is considering a bill that would deposit far more of the city's funds in local community banks to help stimulate economic growth.

Shares of Royal Bancshares of Pennsylvania Inc. have fallen more than 11% since the $1.3 billion-asset Narberth company said it would delay reporting its third-quarter earnings, because it has yet to determine the amount of reserves it would need to cover its loan losses.

Bank of the Carolinas Corp. in Mocksville, N.C., and Randolph Bank and Trust Co. in Asheboro said they terminated their merger agreement after Randolph failed to get enough shareholder votes to approve the transaction.

The sudden departure of Lone Star Bank's top executive has left the Houston start-up in the hands of investors who have no day-to-day experience running banks.

After reporting record third-quarter earnings, American Community Bancorp in Evansville, Ind., appears on its way to losing money this quarter.

Sterling Financial Corp. of Lancaster, Pa., said its deal to be sold to PNC Financial Services Group Inc. of Pittsburgh remains on track despite its disclosure this week of $35 million in new charges related to issues in its equipment leasing unit.

Community National Bank in North Branch, Minn., has been ordered by the Office of the Comptroller of the Currency to overhaul its management, change its loan policies, and begin an independent review of its loan portfolio.

NEW ENGLAND

The deal that Oritani Financial Corp. announced Wednesday for Greater Community Bancorp would give the Washington Township, N.J., thrift company more core funding, more commercial banking expertise, and more branches in counties where it already operates.

Tompkins Financial Corp. of Ithaca, N.Y., said Tuesday that it is buying Sleepy Hollow Bancorp Inc. for $30.2 million.

Southside Bancshares Inc. in Tyler, Tex., said in a Securities and Exchange Commision filing late Tuesday that it would restate its consolidated statement of cash flows in earnings reports for 2004, 2005 and 2006.

LAS VEGAS — America's Community Bankers last-ever conference included lots of discussion on the credit crisis, regulatory burden, and other hot-button issues, but it wasn't all business.

New Century Bancorp Inc. of Dunn, N.C., has lost money in two straight quarters and has been slapped with an enforcement order for lax underwriting, but its chief executive said that it has addressed regulators' concerns, and that it is already on the road back to profitability.

Alan B. Levan, the chairman and chief executive officer of BankAtlantic Bancorp Inc. in Fort Lauderdale, Fla., has more than one company getting stung by the housing market's troubles.