Banks can define “core” deposits by identifying their ideal customers, leveraging data to assess deposit stability, and considering how behavior might change as rates move. But such analysis is easier said than done. The key is understanding deposit flows and the broader customer relationship, this article says.
“EverBank, WaFd to Merge in $3.9B Deal”
EverBank Financial and WaFd announced a reverse merger valued at approximately $3.9 billion. The combined entity would adopt the EverBank name and EVBK ticker and have roughly $75 billion in assets, making it one of the 50 largest U.S. banks.
In other M&A news, Chime announced it would buy its longtime partner Stride Bank for $590 million in cash, while Virginia-based John Marshall Bancorp agreed to buy Eagle Financial Services for $253 million in stock.
“How to Make Life Hard for Small Banks”
CECL imposes significant costs on community banks without materially changing loan-loss reserves, argues Fed Vice Chair Michelle Bowman. She says the standard can restrict lending during economic downturns and calls on FASB to allow smaller banks to return to the incurred-loss accounting method.
“Community Banks Win Big with Sports Sponsorships”
Partnerships with sports organizations and athletes can help community banks build brand awareness, support their communities, and in some cases, gain market share. This article offers four tips for building a successful sponsorship.
“The Homework Behind a Smart Capital Raise”
Many banks have seen their stock prices and valuations rise over the past year, prompting some to consider raising capital while the raising is good. This article explains why banks may want to act sooner rather than later and examines the trade-offs among issuing common equity, preferred equity, and subordinated debt.
“How to Navigate a Credit Card Market Polarized Between the Affluent and the Stressed”
Credit card issuers increasingly face a divided market: super-prime consumers want better rewards and benefits, while subprime borrowers need products that help them access credit, consolidate debt, or rebuild their credit. Read how card designers, marketers, and managers can better serve both groups.
“Block Applies to Establish Builders Bank & Trust”
Block applied to establish an uninsured national trust bank that would provide custody and fiduciary services for digital assets but not accept deposits or make loans. A number of fintech, crypto, and payment companies have sought to enter the regulated banking space in recent months.
In Other News
A researcher quit his job at Anthropic over fears artificial intelligence could destroy humanity, Hunter Biden launched his $LAPTOP meme coin, and Apple’s new CEO unveiled the company’s new foldable iPhone.