Deposits

A coalition of financial industry groups is calling on the Federal Deposit Insurance Corp. to provide more data and extend the comment period on proposed brokered deposit restrictions, warning the changes could disrupt banking practices and harm consumers.

Banks are testing the waters on paying depositors lower interest rates, and analysts expect they're due for a bigger breather when the Fed takes action. It's a welcome shift for banks, after competition for deposits forced them to pay up.

The Federal Deposit Insurance Corp.'s focus on implementing stricter control over brokered deposits is misguided, a former chairman on the agency writes, and misses the real lessons of 2023's bank failures.

Industry experts argue that the Federal Deposit Insurance Corp.'s recent brokered deposit proposal, which would expand the classification of brokered deposits and reverse key elements of a 2020 rule, reflects outdated thinking and may discourage banks from holding such deposits.

The Wilmington, North Carolina-based institution is pursuing a model that cuts out the middleman and embeds its services directly into fintech partners' platforms.

The Oklahoma-based bank also struck an upbeat tone on economic conditions and credit quality after it reported a sharp quarter-over-quarter increase in net income.

The Georgia-based bank recorded a $257 million hit after unloading a bundle of securities that it expects to redeploy into higher-yielding assets. It also forecast a resumption of loan growth in the second half of the year.

See which bank topped American Banker's annual ranking of the best-performing midsize institutions.

The top-performing banks with between $10 billion and $50 billion of assets boasted relatively strong loan portfolios and expense control.

The Charlotte, North Carolina-based bank saw profits and net interest income dip in the second quarter, but made up lost revenue through investment banking fees.