Five Star Bank's parent company denied wrongdoing but said the agreement spares it the uncertainty and expense that might have resulted from a trial.

The 10-year-old lender, which reported a double-digit jump in profits, is benefiting from what its CEO called "animal spirits" at work on this side of the Atlantic.

Forecasters on an American Bankers Association panel predict continued economic growth this year, though they say President Trump's tariffs have created new inflation and recession risks.

The New Jersey bank, which has been investing in its capital markets business, recently helped the fintech lender Best Egg securitize and sell $160 million of loans.

Following a record-setting 2024, only one transaction involving a credit union buying a bank has been announced so far this year. Seller concerns about regulatory approval and pushback from bank industry groups have contributed to the slowdown.

The top five bank M&A deals had an average deal value to tangible common equity ratio of nearly 185%.

Independence Bank can cease operations once it satisfies the conditions in an FDIC consent order. Liquidation would close out a five-year drama that began when regulators cited the bank for SBA lending irregularities.

Small lenders across the country filled leadership positions, including Orrstown Financial Services and QCR Holdings.

The Los Angeles-based parent company of Bank of Hope expects to complete its acquisition of Honolulu-based Territorial in April. The $79 million deal faced challenges when an investor group made a competing bid.

Concentrating in narrow specialties can attract both relatively low-cost deposits and low-risk loans in an era of high interest rates and economic uncertainty, lenders say.