Retail
The Treasury Department announced Tuesday that Bank of America will pay more than $1.21 billion in penalties for violating anti-money laundering and sanctions laws. The penalties include a $1.2 billion fine from FinCEN—the third-largest in Treasury history—and a $750 million civil penalty from the OCC, the largest in its 163-year history. The bank admitted to willful violations of the Bank Secrecy Act, including failures in its AML program, due diligence for correspondent accounts, and suspicious activity reporting for $5 billion in transactions. OFAC also announced an $11.6 million settlement over sanctions violations related to Iran, Russia, global terrorism, and narcotics. Bank of America CEO Brian Moynihan said the bank is committed to resolving the issues.
Upgrade has applied for an industrial loan company charter with the FDIC and the Nevada Financial Institutions Division. The fintech plans to establish Upgrade Bank, with Virginia Varela as proposed CEO. Varela, a former regulator and SoFi executive, brings over 40 years of banking experience. Upgrade, which has delivered about $53 billion in credit to roughly 8.5 million customers, currently partners with Cross River and Celtic Bank. An ILC charter would reduce that dependence. The application comes amid a surge in new charter applications, but some lawmakers and the ICBA oppose ILC charters, citing regulatory gaps.
Omaha-based Pinnacle Bancorp will acquire Southern Bancshares, the parent company of Moulton, Texas-based SouthStar Bank. SouthStar has about $1.4 billion in assets, 16 branches and a loan production office across Austin and central Texas. Terms were not disclosed, and the transaction is set to close in January 2027. Pinnacle, with about $20.9 billion in assets and 164 branches across eight states, will expand its Texas presence beyond the Dallas-Fort Worth area. SouthStar CEO David Kapavik said the bank will continue operating under the SouthStar name through 2027 and that management and staff will remain.
Citi has appointed about 12 new private bank leaders in approximately 15 months, signaling its intent to rise in the North America private banking rankings. Chris Biotti, named head of North America for Citi Private Bank in May 2025, said the bank aims to capture more of its clients' assets and drive higher returns. Citi's wealth client assets exceed $1 trillion globally, with about $3 trillion in North America not held at Citi. The private bank has added 43 bankers or investment counselors since Biotti started, and plans to add about 100 more worldwide. Citi's private bank revenue rose 5% year over year to $769 million in Q2.
Online banks and fintechs are winning over younger consumers, achieving the highest rates of checking account customer satisfaction among both millennials and Gen Z, according to a JD Power survey of more than 23,000 U.S. adults. Among millennials, the average overall satisfaction score for online banks and fintechs is 699 on a 1,000-point scale, versus 672 for national banks. For Gen Z, online banks and fintechs score 701, outpacing national and retail banks. These institutions account for 20% of existing primary checking relationships among millennials and Gen Z, but 28% of newly opened accounts, indicating growth. High satisfaction is driven by fee fairness, real-time account visibility, and proactive communication. American Express, SoFi, and Chime rank highest among millennials, while OnePay and SoFi rank highest among Gen Z.
TowneBank's $154 million acquisition of Blueharbor Bank is set to close in Q1 2027, reducing the pool of North Carolina banks with over $500 million in assets to about 17. The deal, priced at 2.2 times book value and a 17% deposit premium, underscores the scarcity value of remaining targets. Blueharbor, with $628 million in assets, operates five locations and will add to TowneBank's Charlotte metro presence. The transaction is 75% stock and includes board and regional leadership roles for Blueharbor executives.
Houston-based Third Coast Bancshares has agreed to acquire Oklahoma City-based Great Plains Bancshares and its subsidiary, Great Plains National Bank, for roughly $239.6 million in stock. The deal, expected to close in Q1 2027, will create a combined company with approximately $9 billion in assets and 43 branches across Oklahoma and Texas. Great Plains National Bank, which reported $1.9 billion in assets in June, operates 23 branches and entered the Dallas market in 2018. The merger will expand Third Coast into Oklahoma and deepen its presence in Dallas. Great Plains CEO Mark Russell will continue in a leadership role, and two Great Plains representatives will join the boards of Third Coast and Third Coast Bank. Pro forma ownership will be approximately 78% Third Coast shareholders and 22% Great Plains shareholders. The deal follows Third Coast's $123 million acquisition of Keystone Bancshares, which closed in February.
Ally Financial CEO Michael Rhodes says strategy is about choices, and sometimes the best strategy is to do less, not more. Since taking the top post in April 2024, Rhodes has narrowed Ally's focus to three businesses: consumer banking, corporate finance and auto dealer financial services. The bank exited mortgages and sold its credit card program in early 2025, citing interest rate risk and a customer segment mismatch. Ally's full-year net income jumped about 28% from 2024 to 2025, to $852 million, and its core ROTCE was 11.8% in the second quarter. Rhodes acknowledges headwinds from the K-shaped economy, consumer stress and a recent Federal Reserve hike that pressures deposit costs, but he believes the focused model will continue to win.
Banking conferences in 2027 will offer leaders a chance to gauge the industry's direction amid anticipated changes such as increased M&A and tailored regulation, while areas like cryptocurrency frameworks remain uncertain. Events like Acquire or Be Acquired, ABA Conference for Community Bankers, Fintech Meetup, ICBA Live, ABA Washington Summit, CBA Live, The Financial Brand Forum, National Credit Union CEO Roundtable, and ABA Risk and Compliance Conference provide opportunities to connect with peers, explore emerging technologies like AI, and navigate evolving compliance expectations.
After taking the CEO post at Amerant Bancorp in November 2025, Carlos Iafigliola embarked on a credit turnaround. The bank conducted a third-party review of its loan portfolio, retooled its credit team, appointed a new chief credit officer, and revamped credit practices. Nonperforming assets, which had jumped to $140 million in Q3 2025, rose further to about $187 million in Q4 before dipping to $186.6 million in Q2 2026. The bank simplified its structure, trimmed expenses, and is now focusing on growing its commercial segment, particularly serving companies in logistics, education, and professional services in south Florida and Tampa. Amerant is also pursuing growth in Venezuela, where deposits increased to $2.5 billion in Q2.