Weekly Brief · November 2, 2026
OCC and FDIC diverge on mandatory cybersecurity fixes
Warren sought a criminal probe of Bank of America; UMB agreed to pay $506 million for El Dorado; First Hawaiian secured shareholder approvals.
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Supervision and enforcement
OCC and FDIC diverge on compelling cybersecurity fixes
The agencies’ joint supervision rule takes effect November 2, but their approaches to serious technology deficiencies differ. The Office of the Comptroller of the Currency’s enforcement manual permits required remediation plans even when material financial harm is unlikely. The FDIC expects to use that alternative authority rarely, generally requiring a connection to likely material financial harm or a legal or regulatory violation before compelling a fix.
Source: American Banker
Warren seeks a criminal investigation of Bank of America
Senator Elizabeth Warren urged the Justice Department to investigate the bank following its $1.21 billion anti-money-laundering penalty and prosecute the bank or executives if warranted. Warren cited persistent compliance deficiencies despite prior enforcement orders. Bank of America said the penalty affected third-quarter earnings and that it is addressing compliance failures.
Source: Benzinga
FDIC and OCC propose narrower CRA exams and reporting
The July rewrite would focus retail assessments primarily on lending, exclude deposit services, raise the small-bank threshold to $1 billion and create an intermediate category up to $10 billion exempt from data collection and reporting. An October 27 American Banker analysis argued that reduced CRA-related investment could weaken demand for Low-Income Housing Tax Credits.
Source: American Banker
Acquisition funding and earnings economics
UMB agrees to buy El Dorado for $506 million
The proposed acquisition is 52% cash and 48% stock and would add $2.1 billion of core consumer deposits, $2.4 billion of assets and 35 branches in California and Nevada. UMB cited the deposits as a low-cost funding source for loan growth. At June 30, 2026, El Dorado Savings Bank’s cost of deposits was 1.10%, versus a 2.07% median for similar banks. The deal requires regulatory and El Dorado shareholder approvals.
Sources: SEC 8-K, American Banker
Valley’s pending Bluevine acquisition targets cheaper small-business deposits
The previously announced $340 million purchase is expected to close in early 2027, pending regulatory approval, with consideration of 75% cash and 25% Valley stock. October 27 reporting put the expected additions at $2.1 billion in low-cost digital deposits and 180 engineers. Valley executives have described the deal as a funding-cost play and projected 8% earnings accretion in 2028. At June 30, Valley National Bank’s cost of deposits was 2.98%, versus a 2.32% median for similar banks.
Sources: Startup Fortune, American Banker
First Mid agrees to acquire Evergreen for approximately $70.7 million
The stock-and-cash agreement would add American Bank of Freedom, which had $932 million in assets and $727 million in deposits at September 30. The transaction would strengthen First Mid’s Missouri and Illinois presence and establish full-service banking in greater Indianapolis. First Mid estimates 5% earnings-per-share accretion in 2028, including the anticipated impact of crossing $10 billion in assets, and 0.5% tangible book value dilution with an approximately half-year earnback. Consideration is expected to be approximately 80% stock and 20% cash, based on the announcement-date stock price.
Source: SEC 8-K
Merger approvals and remaining conditions
First Hawaiian and TriCo shareholders approve the acquisition
Both companies received all required shareholder approvals for First Hawaiian’s planned $2 billion acquisition of TriCo Bancshares. Closing remains expected later in 2026, subject to remaining customary conditions. The all-stock combination would create an approximately $34 billion-asset company and expand First Hawaiian’s mainland presence. TriCo said integration planning covers people, systems and operations.
Sources: SEC 8-K, Banking Dive
First Financial receives federal approval to acquire Finward
The company now expects the acquisition to close January 1, 2027. The previously announced $208 million stock deal would add about $2 billion in assets and 24 Chicago-area branches. First Financial’s third-quarter net income rose to $81.2 million from $76.5 million in the second quarter, while its fully tax-equivalent net interest margin increased nine basis points to 4.07%, reflecting higher asset yields partly offset by higher funding costs.
Sources: SEC 8-K, ABA Banking Journal, Banking Dive
Fed approves Bank of Nova Scotia’s U.S. bank acquisition
The Federal Reserve’s October 29 approval allows the Toronto bank to become a bank holding company by acquiring Dallas-based Maple Financial Holdings and indirectly acquiring MapleMark Bank in Tulsa.
Source: Federal Reserve Board
Completed combinations and competing offers
Columbia reports completion of its conversion and Northfield acquisition
Columbia Financial’s third-quarter results reported completion of its second-step conversion to a fully public structure and acquisition of Northfield Bancorp during the quarter. Total assets reached $17.6 billion. Net income was $5.2 million, down from $14.9 million a year earlier. At June 30, before the reported completion, Columbia Bank’s net interest margin was 2.42%, versus a 3.73% median for similar banks.
Sources: The Manila Times, SEC 8-K
Peoples Bancorp completes its Citizens National acquisition
The transaction became effective at the close of business October 30 and included Citizens Bank of Kentucky’s merger into Peoples Bank. Citizens brought approximately $646 million in assets, $344 million in loans and $551 million in deposits, measured at September 30. Its 12 branches will initially operate as a Peoples Bank division, with branch conversion scheduled after the close of business April 19, 2027. Citizens shareholders received 2.10 Peoples shares plus $8 in cash per share.
Source: SEC 8-K
Triad’s four proposals challenge the planned Optus–M&F combination
October 30 reporting said Triad Business Bank had sent M&F four proposals ahead of a November 4 shareholder vote. Those proposals aim to keep M&F in North Carolina and preserve its charter and minority depository institution status. Under the agreement announced in July, Optus Financial would acquire M&F Bancorp for more than $105 million in cash and stock, creating a $1.27 billion-asset company operating under the Optus name, subject to regulatory and shareholder approvals.
Sources: Banking Dive, American Banker