Bank acquisitions expand scale as capital rules change

FDIC directs Old Glory Bank to address its capital shortfall. The bank’s Tier 1 leverage ratio was 2.69% as of June 30, and it failed to respond to an earlier FDIC capital warning. The formal corrective action directive constrains growth, with regulators able to require new capital, a sale or liquidation; continued operation remains uncertain.

California regulators close Nano Banc; Sunwest Bank agrees to assume deposits. The FDIC became receiver for the Irvine bank, which reported $736 million in assets and $686 million in deposits as of June 30. Sunwest agreed to assume substantially all deposits and purchase about $476 million of assets. The FDIC’s preliminary $114 million Deposit Insurance Fund loss estimate may change as retained assets are sold.

Truist agrees to sell auto loans as it narrows consumer lending. The agreement covers $5.5 billion of Regional Acceptance Corporation auto loans, with expected net proceeds of $5.2 billion, supporting an exit from near-prime auto lending. Truist had $569 million of nonperforming indirect auto loans in the second quarter, about one-third of non-accruing assets. It previously stopped marine and recreational-vehicle originations and reduced indirect auto lending, accepting lower near-term net interest income to pursue better profitability and efficiency.

Fed finalizes stress-test transparency and capital-buffer averaging rules. The September 30 rules require annual public input on stress-test scenarios and material model changes, with proposed scenarios disclosed by January 10. Starting in 2028, capital-buffer calculations for firms tested in both years will average the two most recent annual supervisory stress-test results. The averaging is intended to reduce volatility; Governor Michael Barr warned that public disclosure could make tests less responsive to emerging risks.

Fed proposes reserve and application requirements for stablecoin issuers. The GENIUS Act proposals would require Fed-supervised payment stablecoins to remain fully backed by permissible reserve assets and establish an application process for state member banks seeking issuing subsidiaries. The proposed framework includes capital and risk-management standards for bank subsidiaries and other Fed-supervised issuers.

Judge allows Epstein-related claims against FirstBank Puerto Rico to proceed but dismisses an obstruction claim. Julia Molchonova’s surviving claims invoke the Trafficking Victims Protection Act and New York City Gender-Motivated Violence Protection Act. The lawsuit alleges the bank ignored warning signs and facilitated banking connected to Jeffrey Epstein’s trafficking network; FirstBank Puerto Rico and its parent, First BanCorp, deny the allegations. The dismissed obstruction claim may be reconsidered depending on a separate New York appeal, leaving legal and compliance exposure unresolved.

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. That takes Peoples above the $10 billion threshold tied to debit interchange limits and heightened supervision, while adding Capital’s specialty-deposit capabilities. Closing is expected in the first half of 2027, and the transaction is expected to be immediately accretive to 2027 earnings.

HomeTrust’s proposed Blue Ridge merger would give Blue Ridge shareholders approximately 35% ownership. Blue Ridge shareholders would receive 0.086 HomeTrust shares for each share held under the all-stock merger. Completion is anticipated in early 2027, subject to shareholder and regulatory approvals. The roughly $448 million acquisition would bring HomeTrust Bank to about $7 billion in assets and 60 Southeast locations.

First Bancorp signs a roughly $166 million merger agreement for First Carolina Bancshares. The agreement provides for stock-and-cash consideration, with closing expected in the fourth quarter of 2026 or early 2027. These are the agreed transaction economics and anticipated closing timing reported in First Bancorp’s July filing.

Goldman Sachs agrees to buy NEOS for up to $2.25 billion. The acquisition would expand Goldman’s actively managed exchange-traded fund franchise and lift its ETF assets to about $130 billion. The announced transaction is expected to close in the first quarter of 2027, so the added asset-management scale remains a prospective benefit.

Peoples Bancshares of TN applies to acquire First Peoples Bancorp. The September 18 application follows the agreed acquisition, with completion expected by early 2027. The buyer owns the $456.1 million-asset Peoples Bank of East Tennessee, and the target owns the $219.5 million-asset First Peoples Bank of Tennessee. The application is a step in the approval process rather than a completed ownership transfer.

Westamerica Bancorporation reports Q2 profit and returns capital through dividends and repurchases. Second-quarter 2026 net income was $27.4 million. Westamerica paid a $0.48 per common share dividend and retired 753,000 shares under its repurchase plan, pairing quarterly profitability with cash distributions and a reduction in shares outstanding.