The Bank Slate: Week in Review

Truist pledges $725 million for hurricane relief, while several banks were hit with enforcement actions.

Nov 25, 2024

Hello, Bank Slaters!

Are you looking forward to the short week ahead? We certainly are.

A reminder that our 2025 budgeting trends report is still available for those with premium subscriptions — click here to level up your sub and secure a copy of the report.

I was featured in the Forbes Finance Council article on factors to consider when setting up digital payment capabilities. My comments focused on having robust security protocols and staff who know how to use cybersecurity technology.

Let’s review the big headlines from the past week.

The Big Headline

CFPB Director Rohit Chopra pressed lawmakers to tackle federal deposit insurance so that small banks and their customers aren't disadvantaged. He pointed to Silicon Valley Bank and Signature Bank, where uninsured depositors were made whole when the banks failed. In comparison, uninsured depositors at the recently failed First National Bank of Lindsay in Oklahoma were not protected.

“When Silicon Valley Bank failed, its big depositors got all their money back,” Chopra said on X. “But when a tiny Oklahoma bank recently failed, its depositors will take a hit. This is unfair.”

And Another One

BNY gained the Treasury Department's Direct Express benefits contract. The agreement gives the New York bank access to more than $3 billion in monthly deposits. Comerica, the current administrator, received a three-year extension to assist with the transfer.

One More…

The CFPB finalized a rule to oversee large technology companies that offer digital wallet apps and other electronic money transfer services. The rule will let the CFPB examine and supervise nonbank companies’ use of “vast quantities” of consumer data, how they correct errors, monitor fraud, and make decisions tied to shutting down apps for certain consumers.

To the Rescue

Truist Financial in North Carolina pledged $725 million over three years to assist people in western North Carolina impacted by Hurricane Helene. The assistance includes $340 million for small businesses, mortgages, and CRE. It also includes $310 million for infrastructure, $50 million for community development, and $25 million in philanthropic grants.

M&A

FirstSun Capital Bancorp in Denver and HomeStreet in Seattle terminated their planned merger after failing to secure regulatory approval.
Capital City Bank Group in Florida took over full ownership of Capital City Home Loans by buying the remaining 49% stake in the mortgage lender. The price will be based on the capital account balances of the lender’s members as of Dec. 31.

Arrivals | Departures

Scott Kavanaugh retired as CEO of First Foundation in Dallas. The Dallas company said that Thomas Shafer also succeeded Kavanaugh as CEO of First Foundation Bank. Shafer was CEO of TCF National Bank when it was sold to Huntington Bancshares in June 2021.
Buckley State Bank in Illinois is looking to hire a new president and CEO.

Island Federal Credit Union in New York said that Craig Booth had become its permanent president and CEO. Booth, the credit union’s COO, had been interim president and CEO.
Clarion County Community Bank in Pennsylvania said that Travis Heiser had become its president and CEO. Heiser, who was CEO of Inner Lakes Federal Credit Union, succeeded James Kifer.

(fin)tech

Robinhood Markets agreed to buy TradePMR, a custodial and portfolio management platform for RIAs, for $300 million in a deal expected to close in the first half of 2025.

Regulation

Martin Gruenberg will step down as FDIC chairman on Jan. 19.
The OCC issued a C&D order to Clear Fork Bank in Texas, for unsafe or unsound practices tied to its Bank Secrecy Act and anti-money laundering compliance. The order replaces a February 2021 formal agreement.
Industry Bancshares in Texas, which has been embroiled in a battle with the OCC, is now dealing with an enforcement action from the Fed.
The Fed barred Shan Hanes, the former CEO of the failed Heartland Tri-State Bank, from future participation in the banking industry. The announcement comes three months after Hanes was sentenced to more than 24 years in prison after pleading guilty to a count of embezzlement by a bank officer.
The Fed issued a new C&D order to Small Business Bank in Kansas. The order resulted from a May exam that identified “new and continuing deficiencies” in the bank’s BSA and AML risk management and compliance.

Odds & Ends

Union Bankshares in Vermont implemented 20-year term limits for directors. Union already has a mandatory retirement age of 72 years.
Bethpage Federal Credit Union in New York is rebranding as FourLeaf Federal Credit Union.

Have a great Thanksgiving everyone!