Credit

First Personal Bank in Illinois tried — and failed — to sell itself three times. The bank finally found an eager buyer after tackling several lingering problems.

The Los Angeles bank also benefited from a reduced reliance on costlier certificates of deposit.

A $135 million increase in litigation expenses related to its 2011 acquisition of Wilmington Trust overshadowed a wider net interest margin and improved credit quality for the Buffalo, N.Y., company in the first quarter.

Bank’s earnings report notes possible $1 billion in fines; loan-loss accounting rule will be rolled out over three years.

The bank revealed Friday that it is facing hefty regulatory penalties and will likely have to restate first-quarter earnings. Declines in loan balances and fee income and questions about upcoming stress tests are only adding to investors' worries.

Investors are growing worried about lackluster loan growth this year at community banks.

Readers react to Mick Mulvaney’s proposal to restructure the Consumer Financial Protection Bureau, opine on Community Reinvestment Act reform ideas, weigh in on emojis in digital banking and more.

Some speculate that the banks who do business with credit reporting agencies may be looking for alternatives after mounting concerns about their ability to keep information private. But breaking up is hard to do.

A broad network of financial data, such as utility payments and direct deposits, could help those without established credit histories better obtain loans. It might also help lenders make more accurate underwriting predictions.

Some fear that the removal of such data from individual credit reports could lead lenders to believe a consumer is a better bet than they really are.