Bank mergers and acquisitions, capital pressures and proposed stablecoin rules

Old Glory Bank faces an FDIC directive over a severe capital shortfall. Its Tier 1 leverage ratio was 2.69% as of June 30, and the bank did not respond to an earlier capital warning. Regulators can require new capital, a sale or liquidation; its continued operation is uncertain.

California regulators closed Nano Banc and appointed the FDIC receiver. Sunwest Bank agreed to assume substantially all of Nano Banc’s $686 million in deposits and buy about $476 million of its $736 million in assets. The FDIC preliminarily estimates a $114 million cost to the Deposit Insurance Fund; that estimate may change as retained assets are sold.

BCB Bancorp completed an equity raise and advanced its problem-loan sale. The 12.65 million-share offering generated approximately $92.4 million in net proceeds. BCB subsequently reported sales of roughly $205.3 million in problem-loan portfolios to six purchasers, with five transactions closed and an estimated $43.3 million pretax loss. It expects a third-quarter loss of $126.2 million to $136.1 million as the credit cleanup weighs on earnings.

EverBank and WaFd agreed to a $3.9 billion reverse merger. The proposed combination would create a lender with about $75 billion in assets and is expected to close in the first quarter of 2027. EverBank investors would own about 59.2% of the combined company; management projects $135 million in cost savings and 29% earnings-per-share accretion in 2027. Those benefits remain projections, not realized results.

Arrow Financial completed its acquisition of Adirondack Bancorp and Adirondack Bank. The July closing followed Adirondack stockholder and New York DFS approvals. Each Adirondack share converted into Arrow stock and $18.72 in cash; Arrow later filed combined pro forma financial information showing historical results and merger-related adjustments.

Colony Bankcorp secured regulatory approvals for its First Reliance merger. The $163 million stock acquisition remains subject to shareholder votes, with closing expected November 1. If completed, the transaction would expand the Georgia-based buyer into South Carolina.

Bank7 won the court-supervised bidding for Century Financial Services and later signed an acquisition agreement. American Banker reported an $89 million net-cash winning bid, up from Bank7's $68 million stalking-horse offer. A later Bank7 filing specifies $70 million in cash plus 1,232,657 Bank7 shares; the sources do not reconcile that cash-and-stock consideration with the reported net-cash bid figure. Century Bank is to merge into Bank7 after closing, expected in the fourth quarter subject to regulatory approvals.

The Fed proposed reserve and subsidiary rules for payment stablecoin issuers. Under its proposed Genius Act implementation, Fed-supervised issuers would have to fully back payment stablecoins with permissible reserve assets. State member banks seeking stablecoin-issuing subsidiaries would face an application process. Both measures remain proposals, leaving their final operating requirements unsettled.