Daily Brief · July 20, 2026
Truist lending cuts alongside earnings and M&A execution
Truist narrowed consumer lending while bank earnings, merger execution, a failure resolution and Basel policy direction moved.
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Truist trims consumer lending
Truist cut marine and RV originations
The $556 billion-asset bank stopped originating marine and recreational vehicle loans in the second quarter and significantly reduced prime and non-prime indirect auto originations. Management said the shift will reduce near-term net interest income but improve long-run profitability and efficiency.
Source: American Banker
Regional banks report quarterly results
F.N.B. Corporation posted record second-quarter revenue, and South Plains Financial issued quarterly results
F.N.B. Corporation reported net income of $148.7 million, diluted EPS of $0.42 and record revenue of $462.7 million, with diluted EPS up 16.7% year over year, while South Plains Financial filed its second-quarter 2026 financial results.
Source: SEC 8-K
M&A execution and bank resolution
Burke & Herbert filed LINKBANCORP merger pro formas while Fifth Third used AI to monitor its Comerica conversion
The 8-K covers the May 1, 2026 merger and includes unaudited pro forma combined financial information with ASC 805 purchase accounting. Fifth Third said it built AI tools to monitor its Comerica conversion, including scans of Teams and Slack feeds for delay signals, and management flagged treasury-management products as especially hard to convert.
Sources: SEC 8-K, American Banker
Small Business Bank was closed and resolved through Farmers State Bank
Kansas regulators closed the Lenexa, Kansas, bank and appointed the FDIC as receiver; Farmers State Bank of Oakley agreed to assume substantially all deposits and purchase certain assets. As of March 31, Small Business Bank had $73 million of assets and about $69 million of deposits, and the FDIC preliminarily estimated a $5.7 million Deposit Insurance Fund cost.
Source: ABA Banking Journal
Warsh’s Basel stance in testimony
Warsh used congressional testimony to favor tailored Basel rules
Federal Reserve Chairman Kevin Warsh told lawmakers that “the Basel endgame is not America’s endgame.” Bank Policy Institute reported that Warsh said growth should be a priority as U.S. regulators revise the capital framework and framed the goal as banks that are safer, sounder and more competitive.
Sources: ABA Banking Journal, Bank Policy Institute