This week in editor's picks, a look at the bank M&A scene in Texas and Oklahoma, an update on Wells Fargo's fallout from the phony accounts scandal, and the effect of the upcoming presidential administration on banks with held-to-maturity bond portfolios, among other features.
As rates move higher, growing HTM portfolios should offer banks some protection
A number of banks have steadily built their held-to-maturity bond portfolios to shield securities from swings in the market. The benefit of those decisions could be evident when banks report fourth-quarter earnings, now that long-term rates have jumped in the aftermath of the U.S. presidential election.
Cross River Bank envisions shaking up payments as it did digital lending
After enabling a shake-up of the lending landscape, a small bank in New Jersey has set its sights on payments. In September, Cross River Bank sponsored a policy summit in Washington, D.C., that included a keynote from top banking regulator Thomas Curry. In November, the company secured $28 million in funding from some big Silicon Valley investors.
Opportunistic Wells Fargo now in deal-making penalty box
Limitations from a living will rejection are the latest setback for Wells Fargo & Co., which has been embroiled in a cross-selling controversy stemming from the company creating unauthorized customer accounts. Wells Fargo has been opportunistic when it comes to making specialty finance acquisitions, but regulators have sent the company to the deal-making penalty box.
Texas, Oklahoma deals pick up as energy sector outlook brightens
Bank deals in Texas and Oklahoma are picking up as oil prices stabilize, leading some industry experts to believe the Southwest, long an industry giant but adversely impacted by the U.S. energy recession, could return to its former glory. According to data collected by S&P Global Market Intelligence, the median deal value/tangible book value for Texas and Oklahoma since 2015, at 173.3%, is still above the industry median of 137.5%, despite some significant drops in oil prices during the period.
NYCB, Astoria deal termination shows postelection surge's effect on M&A
Opportunities to "sweeten the pot" may become a running theme for bank deals still in the pipeline. With bank stocks surging in price following Donald Trump's win in the U.S. presidential election, some acquisition targets with newly boosted share prices may rethink how they are valued in a deal.