Bank capital, acquisitions and credit decisions meet policy uncertainty

BCB Bancorp completed a $92.4 million net capital raise. Its 12.65 million-share offering included the full over-allotment option. BCB also expects a third-quarter net loss and is marketing problem-loan portfolios and cannabis-focused business lines for sale; the disclosure gives no loss estimate or cause.

Consumer-credit exposure prompted different disclosures, not a shared trend. Truist agreed to sell $5.5 billion of Regional Acceptance auto loans for expected net proceeds of $5.2 billion, supporting its near-prime auto exit; nonperforming indirect-auto loans were $569 million in the second quarter. Separately, American Express filed monthly U.S. consumer and small-business card statistics, but the supplied excerpt has no figures from which to assess its credit trend. Its June rates reflected proceeds from sales of previously written-off balances.

Bank7 agreed to buy Century; Colony secured merger approval; First Bancorp has an acquisition plan. Bank7 agreed to acquire Century Financial Services for $70 million in cash and 1,232,657 Bank7 shares; Century Bank is to merge into Bank7 after closing. Colony Bankcorp secured regulatory approvals for its First Reliance Bancshares merger and expects a November 1 closing, subject to shareholder votes. A market report says First Bancorp plans to acquire First Carolina Bancshares for $166 million, but gives no announcement date or transaction terms.

Chime is preparing to own a bank. American Banker reports that Chime is buying a bank as it prepares to compete more directly with large banks. The supplied reporting identifies neither the target nor transaction terms or timing, limiting conclusions about the acquisition's scope.

Fed Vice Chair Michelle Bowman previewed stress-test changes affecting large-bank capital planning. Vice Chair for Supervision Michelle Bowman previewed public comment on stress-test models and scenarios and averaging the two most recent tests to reduce capital-buffer volatility. The Fed also plans to seek comment on a revised noninterest-income model for the 2027 test; these changes are proposed or forthcoming, not completed.

The FOMC raised rates while Huntington described existing earnings headwinds. The unanimous 25-basis-point increase took the federal funds target range to 3.75%–4%, its first rise since 2023. Separately, Huntington said higher deposit costs and weaker loan originations had already carried into the third quarter, more than offsetting fee growth and cost cuts. Those reported pressures were not effects of the newly announced increase.

House proposals advanced or drew hearings; the Senate stalled crypto legislation. A House committee voted 28–21 to advance a bill changing CFPB funding and unfair, deceptive or abusive practices authority. Separately, a subcommittee heard a proposal for a permanent two-year capital phase-in for new banks and a 120-day deadline for agency decisions on bank merger and acquisition applications. Neither proposal is enacted. The Senate's 49–50 procedural vote failed to advance the CLARITY Act, delaying proposed bank digital-asset permissions and leaving stablecoin-yield policy unresolved. A revised draft called for a Treasury determination within 18 months of enactment on whether the stablecoin-interest loophole substantially harmed smaller banks; banking groups argued intervention under that approach could come only after substantial deposit flight.