In a new detailed report, the Federal Reserve laid out four options for upgrading the creaky U.S. payment system. The study raised questions about how far the Fed can, and should, go to bring about change.

Two Pennsylvania banks recently called off a mutual conversion/merger after the FDIC rejected it on policy grounds. The decision – and lack of guidance from the FDIC – could spell trouble for other banks with similar plans.

WASHINGTON — The Office of the Comptroller of the Currency has named Michael Brickman as deputy comptroller for special supervision.

Hamilton Bancorp in Towson, Md., has added a banking veteran to its board.

Metro Bancorp in Harrisburg, Pa., which has been under pressure from activist investors to sell itself, reported higher quarterly income largely because of increased real estate lending.

Sun Bancorp in Mount Laurel, N.J., reported a quarterly loss as it continues to shrink its balance sheet.

North Dallas Bank & Trust is in wait-and-see mode after its largest shareholder's death.

The Illinois Department of Financial and Professional Regulation closed the $54.7 million-asset Highland Community Bank in Chicago on Friday.

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Seaway Bank and Trust in Chicago has entered into a consent order with state and federal regulators.

The focus on raising the $50 billion-asset threshold determining which banks face the toughest provisions is highlighting interest in letting more community banks enjoy exemptions written into the law.

First Niagara reported a fourth-quarter profit, but the more interesting question was why the Buffalo, N.Y., bank won't fully explain the customer problem that has forced it to set aside more than $20 million.

Independent Bank Corp. of Ionia, Mich., is consolidating 14 of its 74 Michigan branches.

Prosperity Bancshares in Houston posted higher quarterly profit despite investor concern about the company's energy loans.

A small Georgia lender has reached a deal to avoid a threatened involuntary bankruptcy, though the resolution is likely to leave key legal questions on trust-preferred debt and bankruptcy unresolved.

Huntingdon Valley Bank in Huntingdon Valley, Pa., and Victory Bank in Limerick, Pa., have called off a planned merger of equals.

First Horizon National in Memphis reported lower quarterly profits that were largely due to a dip in fee-based income.

First Citizens Banc Corp in Sandusky, Ohio, is changing its name.

ServisFirst Bancshares in Birmingham, Ala., which went public last spring, reported a 27% increase in earnings, to $15 million, in the fourth quarter. It also announced plans to expand into South Carolina.

Independent Bank in Rockland, Mass., reported higher quarterly profits, on lower expenses and revenue increases.