While many banks are cheering Republicans' success in the midterm elections, the results may not be as transformative as they hope. Here's why.

First Commonwealth of Pennsylvania, which had avoided home lending since 2005, has picked an inauspicious time to return.

Republicans won a sizable victory late Tuesday, retaking the Senate after losing it eight years ago. Banks, too, largely benefited, as an ally of the industry captured a Senate seat in West Virginia, two credit union allies fell and a key Democratic senator squeaked past. Here's how election night played out for banks.

Cardinal Bankshares in Floyd, Va., is switching leaders again, though it is unclear when the new chief executive will step in.

Sterling Bancorp in Montebello, N.Y., has agreed to buy Hudson Valley Holding in Yonkers, N.Y.

The bank unit of Carver Bancorp in New York has been released from a cease-and-desist order by federal regulators.

First Banks Inc. in St. Louis said that Terrance McCarthy will retire as president and CEO on Feb. 13. McCarthy will also step down from the board. Timothy Lake, president and CEO of banking unit First Bank, will succeed McCarthy.

Bankers are worried that a new proposal will allow Farm Credit institutions to invest in non-farming businesses. The Farm Credit Administration denies those claims, stating that the proposal is designed to comply with the Dodd-Frank Act.

Flagstar Bancorp in Troy, Mich., which has been under pressure from regulators in recent months, has hired a new chief financial officer.

The ousted founders of CertusBank in Greenville, S.C., have filed a new lawsuit against a hedge fund investor.

Trinity Capital in Los Alamos, N.M., will restate earnings for 2009 and has determined that its financial statements going back to 2006 can no longer be relied upon.

ConnectOne Bancorp in Englewood Cliffs, N.J., has appointed Mark Santasieri chief credit officer.

Freedom Bank of Virginia in Fairfax plans to raise $4 million by selling common stock.

Banks are hiring armies of lawyers, accountants, compliance consultants and IT vendors as they prepare to comply with the Volcker Rule. Ironically, their attempts to fortify themselves with outsourced knowledge could expose them to more operational risk.

Thomas H. Lee Partners and Warburg Pincus are selling the rest of their stock in Umpqua Holdings in Portland, Ore.

Berkshire Hills Bancorp in Pittsfield, Mass., has agreed to buy Hampden Bancorp in Springfield, Mass.

Community bank investor Kenneth Lehman is seeking regulatory approval to buy nearly half the shares in Village Bank & Trust Financial in Midlothian, Va.

Southern First Bancshares in Greenville, S.C., is planning to sell 1.2 million shares of its common stock.

Columbia Banking System in Tacoma, Wash., and First Business Financial Services in Madison, Wis., were among a sizable group of banking companies that completed acquisitions in recent days.

A group of investors has raised its stake in Doral Financial on a belief that the San Juan, Puerto Rico, company will prevail in its effort to claim a $230 million tax refund from the territory's government.