Bank M&A, credit exposure and compliance changes

Independent Bank's HCB deal won shareholder approval, while Isabella Bank agreed to buy Grand River Commerce. HCB shareholders approved the merger with Independent Bank under the March 18, 2026 agreement, with closing anticipated July 1, 2026; an earlier filing said the Federal Reserve Bank of Chicago and the Michigan Department of Insurance and Financial Services approved the proposed acquisition. Isabella Bank Corporation also entered an agreement to acquire Grand River Commerce in a cash-and-stock transaction valued about $54.6 million, with Grand River Bank to merge into Isabella Bank.

Barclays agreed to buy GoHenry, and Morgan Stanley's real estate arm acquired Metra Living. Barclays said the undisclosed GoHenry deal should close in the fourth quarter, trim CET1 by about five basis points at closing and leave its 2026 and 2028 guidance unchanged. Morgan Stanley’s real estate investing arm paid $1.4 billion for the London-based private-rental platform, adding a landlord relationship with 3,200 households plus the operating platform and staff.

Wayne Bank disclosed $22 million of Chapter 11 exposure, and Ameris Bank will appeal the Patrick Byrne verdict. Norwood Financial disclosed Wayne Bank has $22.0 million of loan exposure tied to two borrowers that filed Chapter 11 bankruptcy, with more detail expected in the July 22, 2026 second-quarter earnings release. Ameris Bank plans to appeal a jury verdict for Patrick Byrne that awarded $16.525 million plus statutory penalties and about $62.9 million in punitive damages; Ameris said final resolution could have a material adverse effect and is evaluating whether an accrual is required.

CFPB rescinded its 2020 SPCP advisory opinion, and FinCEN said banks may share suspected-fraud data under 314(b). The Consumer Financial Protection Bureau rescinded a 2020 advisory opinion on special-purpose credit programs, citing conflict with recent fair-lending enforcement changes and serious constitutional concerns; the opinion had listed written-plan content under Regulation B of the Equal Credit Opportunity Act and research needed to justify programs. FinCEN said banks may share suspected-fraud information in real time under section 314(b), including transaction records, video, cyber data, device IDs and behavioral red flags, but American Banker reported experts view the safe harbor as an untested legal interpretation.