Bank M&A milestones, capital returns and policy changes

Santander-Webster and Independent-HCB advanced toward closing. The OCC approved the merger of Webster Bank into Santander Bank N.A. for the $12.3 billion Santander-Webster transaction, which still needs Federal Reserve Board and European Central Bank approvals and is expected to close in the second half of 2026. Independent Bank reported Federal Reserve Bank of Chicago and Michigan Department of Insurance and Financial Services approvals for its proposed HCB acquisition; HCB shareholders later approved the merger, with closing anticipated July 1, 2026.

ODNB-National Capital and MidFirst-Dallas added consolidation. ODNB Financial, the holding company of Old Dominion National Bank, and National Capital Bancorp, the holding company of The National Capital Bank of Washington, agreed to merge in a $97.8 million deal expected to create a $2.4 billion-asset bank with $1.9 billion of loans and $2 billion of deposits. MidFirst Bank agreed to buy Dallas Capital Bank for an undisclosed sum; closing is expected in the second half of 2026 and would bring $1.2 billion-asset Dallas Capital into $42 billion-asset MidFirst.

PNC completed FirstBank conversion as Morgan Stanley bought Metra Living. PNC Bank completed the conversion of FirstBank's 780,000 customers, more than 1,620 employees and 95 branches in Colorado and Arizona into its network. Morgan Stanley's real estate investing arm acquired London-based private-rental platform Metra Living for $1.4 billion, including a platform serving 3,200 households.

Metropolitan authorized a buyback and First Financial declared its dividend. Metropolitan Bank Holding Corp., parent of Metropolitan Commercial Bank, approved a new common-stock repurchase program for up to $50.0 million, replacing the prior authorization and using available cash. First Financial Bank parent First Financial Corporation declared a $0.56 quarterly dividend payable July 15, 2026, to shareholders of record July 1, 2026.

Norwood credit exposure and Ameris verdict added loss questions. Wayne Bank faces $22.0 million of loan exposure tied to two Chapter 11 borrowers, with more details expected in Norwood Financial's July 22, 2026 second-quarter earnings release. Ameris Bank plans to appeal a jury verdict for Patrick Byrne that awarded $16.525 million plus statutory penalties and about $62.9 million in punitive damages; Ameris said final resolution could have a material adverse effect and is evaluating whether an accrual is required.

CFPB rescinded special-purpose credit guidance. The bureau rescinded its 2020 advisory opinion on special-purpose credit programs, saying the document conflicts with recent fair-lending enforcement changes and raises serious constitutional concerns. The rescinded opinion had listed written-plan content for for-profit organizations implementing special-purpose credit programs under Regulation B of the Equal Credit Opportunity Act.

FDIC explored discount-window capacity in liquidity requirements. FDIC Chair Travis Hill said the agency is in early cross-agency discussions with the Federal Reserve on whether some discount-window borrowing capacity could count toward liquidity requirements. The idea would not replace high-quality liquid-asset requirements and is framed as an incentive for banks to maintain readiness to borrow during deposit-outflow stress.