Half of banking and other business leaders expect a stronger economy, and 44% expect a stronger M&A market, in the next 12 months, according to a new survey. Regulation remains a concern, but dealmakers are largely ignoring the lingering problems in Washington, observers say.

Royal Bank of Scotland has accelerated its plans to sell its U.S. subsidiary. The company will conduct a partial initial public offering of its Citizens Financial Group unit in the second half of 2014, and plans to fully divest itself through offerings in 2015 and 2016.

Camco Financial (CAFI) said its Advantage Bank has been released from a 2012 enforcement action less than a month after agreeing to sell itself to Huntington Bancshares (HBAN) in Columbus, Ohio.

Zions Bancorp (ZION) in Salt Lake City has raised $162 million in an auction of subordinated debt.

NewBridge Bancorp (NBBC) in Greensboro, N.C., has agreed to buy CapStone Bank (CPSE) in Raleigh, N.C.

The Pennsylvania company is raising $150 million. Two-thirds of it will go toward redeeming trust-preferred securities, but the remaining funds could be used to do bigger deals.

The Capital Asset Pricing Model’s value is debatable in normal times. If misapplied in today’s ultralow interest rate environment, it can severely overvalue banks and excuse poor operating performance.

CommunityOne Bancorp (COB) in Asheboro, N.C., reported its first quarterly profit since 2008.

Mortgage servicer Ocwen Financial (OCN) in Atlanta missed Wall Street's earnings estimates because of delays in integrating servicing rights portfolios it acquired.

EverBank Financial Corp. (EVER) in Jacksonville, Fla., has agreed to sell its default mortgage servicing platform, along with more than $20 billion in rights, to a subsidiary of Walter Investment Management.

The $1.7 billion-asset company submitted a shelf registration with the Securities and Exchange Commission on Wednesday that would allow it to sell up to $150 million of equities or debt.

Santander Bank, which recently changed its name from Sovereign Bank, casts Robert De Niro as an annoying moviegoer in an advertisement for its new checking account that offers a monthly bonus of $20.

The Securities and Exchange Commission recently lifted its ban on advertising private stock offerings, and it's just in time for community banks that are struggling to attract money from sophisticated investors to bolster capital and avoid selling out to other banks.

Cullen/Frost Bankers (CFR) in San Antonio reported a small downtick in quarterly profit after announcing a merger that would expand its business in the Texas energy sector.

Baylake Corp. (BYLK) in Sturgeon Bay, Wis., has been approved to join the Nasdaq.

Provident New York Bancorp (PBNY) in Montebello, N.Y., reported strong earnings in the quarter that ended Sept. 30 thanks to loan growth and a major decrease in merger-related expenses.

First Financial Holdings (SCBT) in Columbia, S.C., reported a 26% rise in quarterly profit after completing a transformative M&A deal.

Atlantic Coast Financial (ACFC) in Jacksonville, Fla., narrowed its losses during a quarter of management upheaval.

M&A is time-consuming and expensive, and it’s especially painful for small banks like First Scottsdale, an aspiring consolidator in Arizona, when their deals fall apart.

First Data Corp., a global electronic commerce and payment processing firm, announced Tuesday that it has acquired Perka, provider of a smart loyalty program.