Bank capital planning shifts alongside acquisitions and deposit repricing

Fed finalizes stress-test reforms with capital-buffer averaging starting in 2028. For large banks tested in both years, stress capital buffers will use the average of the two most recent annual supervisory tests, reducing year-to-year volatility in required capital. The Fed will seek annual public input on scenarios and material model changes, with a January 10 deadline for proposed scenarios. Governor Michael Barr warned that public disclosure could make tests less responsive to emerging risks.

TD Bank Group proposes another C$10 billion buyback, subject to regulatory approval. The proposed program would repurchase no more than 61 million common shares by July 2027. TD completed its preceding C$7 billion buyback on September 25. The new purchases would initially use its existing normal course issuer bid, with a new bid to follow; the announced capital return remains conditional rather than an approved repurchase commitment.

Westamerica Bancorporation reports $27.4 million in second-quarter profit. Its July filing also reported a paid dividend of $0.48 per common share and 753,000 shares retired under its repurchase plan. A September 30 report put quarterly earnings per share at $1.17, above analyst expectations, and revenue at $62.77 million.

Peoples Bancorp agrees to acquire Capital Bancorp for $728 million in stock. The combined bank is expected to have $14.3 billion of assets and $11.8 billion of deposits, taking Peoples above the $10 billion threshold tied to debit-interchange limits and heightened supervisory scrutiny. Peoples cited Capital’s specialty-deposit-gathering capabilities as an attraction. The deal is expected to close in the first half of 2027 and be immediately accretive to Peoples’ 2027 earnings, while expanding its Washington, D.C.-area presence.

Goldman Sachs agrees to acquire NEOS to expand its active ETF franchise. August reporting valued the cash-and-equity deal at up to $2.25 billion, with closing expected in the first quarter of 2027. NEOS had about $32 billion in assets across nearly two dozen options-based income funds; the acquisition would bring Goldman’s ETF assets to about $130 billion.

Ally Financial reduced deposit costs while retaining and growing its customer base. An American Banker profile reports that Ally’s strategy shift begun in 2025 lowered deposit costs by 60 basis points, or about $850 million, through lower account rates. Its customer base grew 5%, with 95% retention. The reported combination shows lower funding costs without customer-base contraction; the article says the savings helped contribute to 62% year-over-year earnings-per-share growth.

OCC conditionally approves Mission Lane’s limited-purpose credit-card bank. Mission Lane plans to transition its existing card program to the bank over three years, making it the sole issuer of Mission Lane-branded cards. FDIC approval to insure deposits above $100,000 remains pending. The conditional charter therefore provides a path toward direct card issuance, but does not establish a final bank launch or completed deposit-insurance approval.

FCC approves narrower consent-revocation rules for customer calls and texts. The September 30 vote was 3-0. Under the revised Telephone Consumer Protection Act rule, callers may treat a revocation as applying only to the message category addressed, with notice to the recipient explaining that treatment. The order modifies the provided-number condition for certain exempt financial-institution calls; the existing exemption covers specified time-sensitive messages, including suspected-fraud alerts.