Daily Brief · July 1, 2026
Bank M&A, controls and digital assets set agenda
Colony struck a Southeast bank deal, BNY advanced digital-asset custody, and control/legal issues shaped bank risk channels.
7 stories2-minute read
Transactions and franchise expansion
Colony Bankcorp agreed to buy First Reliance Bancshares
The $163 million stock deal is expected to close in the fourth quarter of 2026, with First Reliance merging into Colony under a definitive merger agreement. The transaction values First Reliance at 162% of tangible book value and would create a combined institution with about $5 billion of assets, subject to approvals.
Sources: ABA Banking Journal, SEC 8-K, American Banker
Legal, supervisory and compliance risk
SVB Financial Trust and the FDIC began trial over disputed Silicon Valley Bank deposits
American Banker reported the trial concerns roughly $1.7 billion in deposits left at Silicon Valley Bank when the FDIC took over in March 2023. Bank Reg Blog said the FDIC's answer seeks to offset liability on SVBFG's broader $1.93 billion claim by alleging fiduciary-duty breaches by former SVB and SVBFG officers and directors.
Sources: American Banker, Bank Reg Blog
OCC terminated Patriot Bank’s Formal Agreement
The termination of the Jan. 14, 2025 Formal Agreement was effective June 30, 2026, and Patriot issued an investor update on July 1. The filing marks a specific supervisory-remediation milestone for Patriot National Bancorp’s bank unit.
Source: SEC 8-K
SEC fined Merrill Lynch $7.5 million over AML lapses
The SEC censured Merrill Lynch and entered a cease-and-desist order after saying its monitoring program missed suspicious transactions. Bank of America retained a consultant to review its anti-money-laundering program, leaving the issue in the compliance and control-remediation channel rather than only a one-time penalty item.
Source: American Banker
Stablecoin custody and tokenized-deposit positioning
BNY added USDC custody, and SEC Chair Paul Atkins said tokenized deposits could be available next year
USDC is the first stablecoin on BNY’s Digital Asset Custody platform, where institutional clients can store, transfer, mint and burn the token. More than 140 firms, including BNY, U.S. Bank and American Express, also backed Open Standard’s Open USD stablecoin, which is slated to launch later this year.
Source: American Banker
Private-credit risk and capital incentives
Bank Director analysis framed private-credit bank risk as mostly indirect
Bank Director cited $1.32 trillion of bank loans to nondepository financial institutions and said a private-credit bust would likely affect banks more through indirect channels than direct holdings. Bank of America cited 70% to 75% advance rates on private-credit loans, with concentration limits and asset-by-asset approval rights.
Source: Bank Director
Atkins floated Basel III changes to shift lending incentives
Atkins separately suggested Basel III capital-rule changes that could reduce banks’ incentive to lend to private equity and private credit firms rather than small and medium-sized businesses.
Source: American Banker