Happy Friday!!!
WHEW – there is a lot to unpack this week, so let’s jump right in! Here is the Uncle Sean Update for 7/28/23:
Absolutely LOVE this♥️!!! DCI announced a partnership with RiskScout, a leading BSA/AML tech company. “Partnering with RiskScout will give our banks the opportunity to bring on new customers in higher-risk markets,” said Sarah Fankhauser, DCI President and CEO. “RiskScout brings a proven track record of helping financial institutions serve those customers and navigate the surrounding regulatory landscape effectively.” NICE!!!! 🤘👏By the way…. Congratulations to DCI President and CEO Sarah Fankhauser as she recently celebrated 30 years at DCI of dedicated leadership and support of community banking! WOW – that is impressive!!!! 😎
It’s Fed Week! It was pretty much written in stone so no big surprise that the FOMC unanimously voted to raise the Fed Funds Rate by 25 bps bringing the target range to 5.25% – 5.5%, which is the highest in 22 years. CNBC has a pretty good summary. Additional detail if you want to dig in:Chairman Powell Press Conference transcript (23 pages)Chairman Powell Press Conference video (44 minutes)Worth noting, the next FOMC meeting is in Sept (and will accompany a Summary of Economic Projections), so the Fed will have a couple of months worth of economic date to digest before the next interest rate decision.
Meanwhile, second quarter GDP came in at a strong 2.4% annualized rate for the April – June time period (+2.0% consensus estimate from Dow Jones, +2.0% previously).
Cable gets the double whammy in news this week: Shout out to Cable as the latest innovative institution to join the BaaS Association!!!!!Grasshopper Bank (leading sponsor bank) has partnered with Cable to leverage Cable’s next-level automation and technology for financial crime assurance, testing, and oversight for Grasshopper Bank’s direct customers as well as their industry-leading BaaS platform.
Merger Mania (not lost on me is the fact that this comes on the heels of the proposed draft merger guidelines by the FTC and DOJ last week….):Banc of California, Inc. (NYSE: BANC) and PacWest Bancorp (Nasdaq: PACW) announced a merger of equals. After the deal closes, the combined bank is expected to have about $36.1 billion in assets, $25.3 billion in total loans, $30.5 billion in total deposits and over 70 branches in California (which includes paydown of approx. $13B in wholesale borrowings funded by assets sales and excess cash). Check out the Investor Deck.Warburg Pincus and Centerbridge are also investing $400 million into the combined business for about a 19% stake.Banking Dive is reporting that JPMorgan is the buyer of about $1.8B of single-family residential loans from Banc of California at a discount.Atlantic Union Bankshares Corporation (NYSE: AUB) entered into an agreement to acquire American National Bankshares Inc. (Nasdaq: AMNB). The combined company will have total assets of $23.7 billion, total deposits of $19.1 billion and gross loans of $17.3 billion, based on financial data as of June 30, 2023.Upgrade is acquiring Uplift for $100M.LPL Financial LLC to acquire the wealth management business of Crown Capital Securities, L.P..
A lot going on in the Payments Space:Visa Direct transactions soar 20% to 1.8B for the quarter on a global basis driven by P2P and B2B cross-border payments.NACHA reported same-day ACH transactions up 7.7% to 199.4M transactions for the quarter. The value of those payments was $612.6 billion, an increase of 26.1%.Mastercard announced the launch of Mastercard Receivables Manager, a safe and cost-effective automated solution for businesses to accept and process virtual card payments.Cross River expands their partnership with Plaid to allow instant payments across multiple payment rail options including ACH, RTP®, and soon the FedNowSM Service. For more info – check out Instant Payouts on Plaid Transfer.
Finastra partners with MX to integrate MX PFM, Insights, and Account Aggregation solutions with Finastra’s Fusion Digital Banking solution in order to enable financial institutions to better guide consumers toward financial wellness.
👀 The regulatory bodies released their anticipated interagency Basel III Endgame for banks with $100B in assets. Quick note that this is a 5 year phase in by July 1 2028; and the comment period is now open through November 30, 2023. A quick link to supporting docs (fact sheets, overview, etc.) if you want to get into the weeds:Federal Reserve proposed rules to strengthen capital requirements for large banksFDIC Basel III proposed capital rulesOCC proposed rules to strengthen capital requirements for large banks
The OCC fined American Express National Bank $15 million for failing to oversee a third-party affiliate’s call monitoring and process for tracking customer complaints, an announcement that comes as regulators have zeroed in on banks’ efforts to supervise third-party relationships.
BM Technologies (BMTX – fka BankMobile) disclosed delays on the regulatory review process in the transfer of their Higher Education business to their new sponsor bank, First Carolina Bank.
The NCUA has conserved Yonkers Postal Employees Credit Union (charter 63918; Total Assets of $6M; 458 members).
Notable FinTech funding for the week:Immediate (EWA platform) raised $16M in Growth Capital.Mercury Financial (credit card platform) closed a $200M Debt Facility to expand their credit card business.Effectiv (real-time fraud and risk management platform for Fis and FinTech companies) raised an additional $4.5M in Seed funding bringing the total seed round to $9M; as well as the launch of DeviceAI.
Random Uncle Sean stuff:
The IRS has halted the decades long practice of showing up unannounced at your doorstep… Am I the only person who did not know that they still did that??? I thought that was one of those urban myths!!! 😮😬UPS reached a tentative labor deal with the 340k-worker union that includes $30B in new pay and benefits, potentially preventing a strike that could have been brutal for, well, pretty much everybody.Here they are – Dad Jokes!!!The heat down here in Texas has everyone looking like those gas station hot dogs!!!Aging is best represented as the inevitable reduction of time between dinner and bed time….Frogs have more lives than cats because they croak every day! 🐸This one was sent in to me by Mr. Cal Roberson over at Integris Financial Institution Division (great people doing great work over there):I learned there is a medical term for when you can’t sleep and eat instead. It’s called insomnomnomnia!!! 🍕🤣😂 Thanks Cal!!!! 😊
Have a GREAT weekend and please stay safe!!!
Uncle Sean
Sometimes known as Sean Mayo – contact me directly for scope and pricing of custom reports / analysis projects at smayo@fedfis.com | 214-604-6961 – or you can contact FedFis Sales Team at 512-960-0911 | info@fedfis.com #FedFisHasTheData FedFis
FedFis, LLC disclaimer – The views and opinions of Uncle Sean are of his own and may not necessarily represent the views, endorsements, and/or opinions of FedFis, LLC – we all know he’s a little bit different; but that’s why we love him.
WHEW – there is a lot to unpack this week, so let’s jump right in! Here is the Uncle Sean Update for 7/28/23:
Absolutely LOVE this♥️!!! DCI announced a partnership with RiskScout, a leading BSA/AML tech company. “Partnering with RiskScout will give our banks the opportunity to bring on new customers in higher-risk markets,” said Sarah Fankhauser, DCI President and CEO. “RiskScout brings a proven track record of helping financial institutions serve those customers and navigate the surrounding regulatory landscape effectively.” NICE!!!! 🤘👏By the way…. Congratulations to DCI President and CEO Sarah Fankhauser as she recently celebrated 30 years at DCI of dedicated leadership and support of community banking! WOW – that is impressive!!!! 😎
It’s Fed Week! It was pretty much written in stone so no big surprise that the FOMC unanimously voted to raise the Fed Funds Rate by 25 bps bringing the target range to 5.25% – 5.5%, which is the highest in 22 years. CNBC has a pretty good summary. Additional detail if you want to dig in:Chairman Powell Press Conference transcript (23 pages)Chairman Powell Press Conference video (44 minutes)Worth noting, the next FOMC meeting is in Sept (and will accompany a Summary of Economic Projections), so the Fed will have a couple of months worth of economic date to digest before the next interest rate decision.
Meanwhile, second quarter GDP came in at a strong 2.4% annualized rate for the April – June time period (+2.0% consensus estimate from Dow Jones, +2.0% previously).
Cable gets the double whammy in news this week: Shout out to Cable as the latest innovative institution to join the BaaS Association!!!!!Grasshopper Bank (leading sponsor bank) has partnered with Cable to leverage Cable’s next-level automation and technology for financial crime assurance, testing, and oversight for Grasshopper Bank’s direct customers as well as their industry-leading BaaS platform.
Merger Mania (not lost on me is the fact that this comes on the heels of the proposed draft merger guidelines by the FTC and DOJ last week….):Banc of California, Inc. (NYSE: BANC) and PacWest Bancorp (Nasdaq: PACW) announced a merger of equals. After the deal closes, the combined bank is expected to have about $36.1 billion in assets, $25.3 billion in total loans, $30.5 billion in total deposits and over 70 branches in California (which includes paydown of approx. $13B in wholesale borrowings funded by assets sales and excess cash). Check out the Investor Deck.Warburg Pincus and Centerbridge are also investing $400 million into the combined business for about a 19% stake.Banking Dive is reporting that JPMorgan is the buyer of about $1.8B of single-family residential loans from Banc of California at a discount.Atlantic Union Bankshares Corporation (NYSE: AUB) entered into an agreement to acquire American National Bankshares Inc. (Nasdaq: AMNB). The combined company will have total assets of $23.7 billion, total deposits of $19.1 billion and gross loans of $17.3 billion, based on financial data as of June 30, 2023.Upgrade is acquiring Uplift for $100M.LPL Financial LLC to acquire the wealth management business of Crown Capital Securities, L.P..
A lot going on in the Payments Space:Visa Direct transactions soar 20% to 1.8B for the quarter on a global basis driven by P2P and B2B cross-border payments.NACHA reported same-day ACH transactions up 7.7% to 199.4M transactions for the quarter. The value of those payments was $612.6 billion, an increase of 26.1%.Mastercard announced the launch of Mastercard Receivables Manager, a safe and cost-effective automated solution for businesses to accept and process virtual card payments.Cross River expands their partnership with Plaid to allow instant payments across multiple payment rail options including ACH, RTP®, and soon the FedNowSM Service. For more info – check out Instant Payouts on Plaid Transfer.
Finastra partners with MX to integrate MX PFM, Insights, and Account Aggregation solutions with Finastra’s Fusion Digital Banking solution in order to enable financial institutions to better guide consumers toward financial wellness.
👀 The regulatory bodies released their anticipated interagency Basel III Endgame for banks with $100B in assets. Quick note that this is a 5 year phase in by July 1 2028; and the comment period is now open through November 30, 2023. A quick link to supporting docs (fact sheets, overview, etc.) if you want to get into the weeds:Federal Reserve proposed rules to strengthen capital requirements for large banksFDIC Basel III proposed capital rulesOCC proposed rules to strengthen capital requirements for large banks
The OCC fined American Express National Bank $15 million for failing to oversee a third-party affiliate’s call monitoring and process for tracking customer complaints, an announcement that comes as regulators have zeroed in on banks’ efforts to supervise third-party relationships.
BM Technologies (BMTX – fka BankMobile) disclosed delays on the regulatory review process in the transfer of their Higher Education business to their new sponsor bank, First Carolina Bank.
The NCUA has conserved Yonkers Postal Employees Credit Union (charter 63918; Total Assets of $6M; 458 members).
Notable FinTech funding for the week:Immediate (EWA platform) raised $16M in Growth Capital.Mercury Financial (credit card platform) closed a $200M Debt Facility to expand their credit card business.Effectiv (real-time fraud and risk management platform for Fis and FinTech companies) raised an additional $4.5M in Seed funding bringing the total seed round to $9M; as well as the launch of DeviceAI.
Random Uncle Sean stuff:
The IRS has halted the decades long practice of showing up unannounced at your doorstep… Am I the only person who did not know that they still did that??? I thought that was one of those urban myths!!! 😮😬UPS reached a tentative labor deal with the 340k-worker union that includes $30B in new pay and benefits, potentially preventing a strike that could have been brutal for, well, pretty much everybody.Here they are – Dad Jokes!!!The heat down here in Texas has everyone looking like those gas station hot dogs!!!Aging is best represented as the inevitable reduction of time between dinner and bed time….Frogs have more lives than cats because they croak every day! 🐸This one was sent in to me by Mr. Cal Roberson over at Integris Financial Institution Division (great people doing great work over there):I learned there is a medical term for when you can’t sleep and eat instead. It’s called insomnomnomnia!!! 🍕🤣😂 Thanks Cal!!!! 😊
Have a GREAT weekend and please stay safe!!!
Uncle Sean
Sometimes known as Sean Mayo – contact me directly for scope and pricing of custom reports / analysis projects at smayo@fedfis.com | 214-604-6961 – or you can contact FedFis Sales Team at 512-960-0911 | info@fedfis.com #FedFisHasTheData FedFis
FedFis, LLC disclaimer – The views and opinions of Uncle Sean are of his own and may not necessarily represent the views, endorsements, and/or opinions of FedFis, LLC – we all know he’s a little bit different; but that’s why we love him.
Recent Comments