Daily Brief · October 29, 2026
Fed holds rates at 3.75%–4%, with two favoring increase
The October 28 decision passed 10–2, with Lisa Cook and Beth Hammack favoring a quarter-point increase. The Fed said inflation remained elevated. It continued its policy of maintaining ample reserves in the banking system.
Source: Federal Reserve Board
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Rates and bank supervision
OCC and FDIC diverge on compulsory fixes for cyber weaknesses
American Banker reports the OCC permits mandated plans for serious IT gaps without likely material financial harm. The FDIC expects to use that authority only rarely. The difference concerns implementation of their joint supervision rule, reported as taking effect November 2. The FDIC generally requires a connection to likely material financial harm or a legal or regulatory violation to compel remediation.
Source: American Banker
Quarterly earnings
Raymond James reports record quarterly revenue and earnings
Fiscal fourth-quarter revenue rose 15% year over year to $4.27 billion; diluted EPS rose 15% to $3.40. Domestic Private Client Group net new assets totaled $22.8 billion. Combined net interest income and third-party bank deposit-program fees reached $674 million, up 3% year over year and 2% from the preceding quarter.
Source: SEC 8-K
Coastal Financial returns to profit after second-quarter loss
Third-quarter net income was $13.8 million, or $0.89 a share, versus a $42.1 million second-quarter loss. Banking-as-a-service program fees rose 17.6% quarter over quarter to $14.1 million. Management said its review of the affected partner relationship, including expected credit losses and collectability under the partner’s indemnification arrangement, substantially supported its June 30 estimates. Year-earlier net income was $13.6 million.
Source: SEC 8-K
Bank acquisitions and their economics
First Community agrees to buy Main Street for $243 million
The proposed acquisition would add 21 branches and $1.6 billion in assets, extending operations into Ohio. At June 30, 2026, First Community Bank’s deposit cost was 0.78%, versus a 2.20% peer median. The companies said the combination pairs Main Street’s loan growth with First Community’s low-cost core deposits and liquidity. Closing is expected in the second quarter of 2027; combined assets would be approximately $5.2 billion before transaction adjustments.
Sources: SEC 8-K, Banking Dive
UMB agrees to acquire El Dorado for $506 million
The pending deal would add $2.1 billion in core consumer deposits. At June 30, 2026, El Dorado Savings Bank’s deposit cost was 1.10%, versus a 2.07% peer median. October 28 reporting describes UMB’s plan to use that funding for loan growth, following the agreement announced October 27. Consideration is 52% cash and 48% stock, and the transaction requires regulatory and El Dorado shareholder approval.
Sources: American Banker, SEC 8-K
Renasant agrees to acquire Commercial, targeting trust growth and savings
Commercial has $1.2 billion in assets under management, concentrated in trust. Renasant projects savings of 25% of Commercial’s $31.3 million 2025 expense base. October 28 reporting identifies the trust franchise as a major reason for the acquisition announced the prior day. The approximately $142 million aggregate transaction value includes Renasant stock and a $35.7 million special dividend to be paid by Commercial before closing. Closing is expected in the first quarter of 2027, subject to regulatory and Commercial shareholder approvals.
Sources: American Banker, SEC 8-K
Mortgage-business sale
CMG Mortgage signs definitive agreement to buy Northpointe’s mortgage channels
CMG Mortgage will pay 0.15% on first-lien originations closed through the channels until December 31, 2028. CMG will assume associated leases where possible. The agreement, signed October 26 and announced October 28, replaces the previously disclosed nonbinding letter of intent for Northpointe’s distributed retail and consumer-direct mortgage origination channels. Completion is expected by November 30, 2026, subject to customary closing conditions.
Source: SEC 8-K