Former TCF exec hired to lead S&T in Pennsylvania

S&T Bancorp in Indiana, Pa., will soon have a new leader.

The $9.3 billion-asset company said in a press release Monday that Christopher McComish will become its CEO on Aug. 23.

McComish will succeed David Antolik, who has been interim CEO since April. Antolik will remain the company’s president, a position he has held since January 2019.

Antolik filled in as interim CEO following Todd Brice's March 31 retirement.

McComish previously served as senior executive vice president of consumer banking at TCF Bank. Before that, he was president and CEO of Scottrade Bank.

“Following a comprehensive search process that considered internal and external candidates, the board concluded that Chris is the right leader for S&T,” Christine Toretti, S&T’s chairman, said in the release.

“We are delighted to welcome an experienced banker like Chris to S&T and thrilled that he will lead our company in its next era,” Christine Toretti, S&T’s chairman, said in the release.

Lakeland entering three N.J. counties with latest deal

Lakeland Bancorp in Oak Ridge, N.J., has agreed to buy 1st Constitution Bancorp in Cranbury, N.J.

The $7.8 billion-asset Lakeland said in a press release Monday that it will pay $244.4 million in stock for the $1.3 billion-asset 1^st Constitution. The deal, which is expected to close by early 2022, priced 1st Constitution at 157% of its tangible book value.

The acquisition will give Lakeland its first branches in New Jersey’s Mercer, Middlesex and Monmouth counties.

The acquisition “provides attractive financial attributes to shareholders of both Lakeland and 1st Constitution,” Thomas Shara, Lakeland’s president and CEO, said in the release. “This merger is consistent with our recent initiatives to expand into desirable markets.”

Robert Mangano, 1st Constitution’s president and CEO, will join Lakeland’s board.

The deal is expected to by 10.1% accretive to Lakeland’s earnings per share. It should take a little more than three years for Lakeland to earn back a projected 3.9% dilution to its tangible book value.

Lakeland said it plans to cut about 44% of 1st Constitution’s annual noninterest expenses, or roughly $18.2 million. The company expects to incur $18 million of merger-related expenses.

"The deal certainly makes sense strategically as [1st Constitution] represents one of the last good franchises of any size left in New Jersey," Frank Schiraldi, an analyst at Piper Sander, wrote in a note to clients.

"Bottom line, we like the deal strategically but look at it as a bit expensive and [we] do see some risk to the 10% accretion," Schiraldi added.

Keefe, Bruyette & Woods and Luse Gorman advised Lakeland. Raymond James and Day Pitney advised 1st Constitution.

BNY Mellon buying fintech that serves fund managers

Bank of New York Mellon in New York has agreed to buy Milestone Group, a company that provides fund management technology.

The $460 billion-asset BNY Mellon said in a press release Thursday that it expects to complete the acquisition in the second half of this year. The company did not disclose the price it will pay. 

BNY Mellon and Milestone formed an alliance more than a year ago to create a suite of oversight and contingent net asset value services for asset managers and other clients.

The acquisition “is the latest demonstration of BNY Mellon's commitment to support clients across the investment lifecycle and provide clients with open and flexible digital solutions that enable them to optimize, scale and grow their businesses," Roman Regelman, CEO of asset servicing and head of digital at BNY Mellon, said in the release.

"We gain both industry-leading technology as well as the expertise that Milestone is known for globally,” Regelman added. “This is a significant step in our continuous evolution — blending leading edge technologies and services to deliver greater efficiency and value for our clients."

Heritage Commerce discloses $4M legal settlement

Heritage Commerce in San Jose, Calif., has set aside $4 million to cover a legal settlement.

The $5 billion-asset company said in a regulatory filing Wednesday that the settlement addresses claims its bank was negligent in handling, supervising and managing depository accounts for DC Solar debtors and related investment funds. 

The settlement must be approved by the bankruptcy court.

Heritage Commerce said the settlement will run through noninterest expenses for the second quarter and that it will pursue reimbursement from its insurance carriers.

DC Solar filed for bankruptcy protection in February 2019. Heritage Commerce disclosed a month later that its bank had two unsecured commercial real estate loans, with a total balance of $3.3 million, to entities affiliated with the company.

United Bancorp. in Alabama announces CEO retirement

The CEO of United Bancorp. in Atmore, Ala., has retired.

The $949 million-asset company said in a press release Wednesday that Bob Jones, 69, also retired as president, effective July 2. He had been the company’s president and CEO since 1992.

David Swift, the company’s chairman, will serve as interim CEO. Mike Vincent, United’s chief credit officer, was named interim president.

Gwen Braden was named chief operating officer of United Bank, returning to a post she held from 2013 to January 2021. She had spent recent months serving as a consultant to the bank.

“This is a great time for United Bank especially because we have the opportunity to advance superb talent from within the company,” Swift said in the release.

North Carolina banking commissioner retires

Ray Grace has retired as North Carolina’s commissioner of banks.

Gov. Roy Cooper announced in a recent press release that he had appointed Katherine M.R. Bosken to serve as interim commissioner, pending approval from the state’s General Assembly.

Bosken, who joined the North Carolina Office of the Commissioner of Banks in 2013, previously served as an associate at Gebhardt & Smith in Baltimore.

Grace had been in charge of banking oversight in North Carolina since 2013. He joined the agency in 1974 as an examiner trainee.

Investor pushes Codorus Valley to consider selling

Codorus Valley Bancorp in York, Pa., is facing calls from an activist investor to find a buyer. 

Driver Management in New York said in a Tuesday regulatory filing that it wants the board of the $2.3 billion-asset Codorus Valley to “immediately hire a financial advisor and conduct a comprehensive review of all available options for increasing shareholder value, including a sale.”

Driver, which has a roughly 6.3% stake in Codorus Valley, said it wants to have a “full and frank discussion of the options available to the board and the [company] to increase shareholder value.”

The investor said it offered on June 29 to enter into a confidentiality and standstill agreement, as long as it was allowed to nominate candidates to run as directors during the company’s 2022 annual meeting.

Driver recently resolved a longstanding dispute with First United in Oakland, Md.

The $1.7 billion-asset First United disclosed in April that it would buy about 361,000 shares of its stock from Driver for $6.5 million. First United and Driver also agreed to a cooperative agreement, with the banking company paying the investor $3.3 million to settle outstanding litigation.

Driver agreed to back off a plan to nominate Abbott Cooper, a managing member, to stand for election to First United’s board at the company's next annual meeting. The investor also agreed to withdraw any other shareholder proposals, stop soliciting proxies and refrain from buying First United stock.