Bank Buys Calif. Wholesaler

Clearfield Bank and Trust Co. acquired five Pennsylvania branch offices and one drive-thru location from First Commonwealth Bank, according to an announcement by First Commonwealth’s parent.

First Commonwealth, which disclosed selling $130.7 million in mortgage-backed securities portfolio to reduce its interest rate risk and improve net interest income, said the move is part of its branch optimization initiative and business strategy to focus operations in higher-growth markets.

Roark Capital Group, an Atlanta, Ga.-based private equity firm, recently announced it acquired a majority position in Ace Mortgage Funding, an Indianapolis, Ind.-based retail mortgage broker.

Ace, which last year reportedly generated residential mortgage volume of over $3 billion, said “Roark’s expertise in financial services and access to additional capital will help accelerate” its growth plans.

The Fed on Tuesday disclosed it approved the deal for Cathay General Bancorp, Los Angeles, Calif., to acquire New York-based Great Eastern Bank.

A commenter of the merger proposal expressed concern that Great Eastern 2004 Home Mortgage Disclosure Act data “were ‘homogenous’ and showed approved and originated loans but no loans that were denied, withdrawn, or approved but not accepted,” the Fed reported.

However, the Fed noted Great Eastern received an overall “satisfactory” rating in its evaluation and that examiners “reported that the bank’s overall record of lending to borrowers of different income levels, including [low-to-moderate income] individuals, and businesses of different sizes was outstanding.”

In the Fed’s review of the proposal for New York Community Bancorp Inc. to acquire Long Island Financial Corp., a commenter opposed the merger because 2004 HMDA data allegedly showed New York Community denied mortgage and refinance applications of African-American and Hispanic borrowers more frequently than those of non-minority applicants.

However, the Fed announced Wednesday its approval of the acquisition, noting that New York Community’s lending programs and its overall performance, as well as that of Long Island Financial, demonstrated that “the institutions are active in helping to meet the credit needs of their entire communities.“

On Thursday, the Fed gave Bank of America the green light to acquire MBNA Corp., which operates MBNA Mortgage and says it is the largest independent credit card lender in the world.

In the review process of this proposed merger, several commenters expressed concern about BoA’s relations with unaffiliated third parties engaged in subprime lending, among other activities, and asserted the bank performed inadequate due diligence to screen for “predatory” loans, according to the Fed’s approval order.

Also, some commented that HMDA data showed BoA and MBNA, which says it is the largest independent credit card lender in the world, engaged in disparate treatment of minority individuals. The commenters cited the bank’s d denying home loan applications from African-Americans and Hispanics more frequently than for non-minorities, as well as placing such groups in higher-cost loans more frequently.

The Fed concluded, however, that both banks’ Community Reinvestment Act lending programs and overall lending performance records demonstrated they were active in helping meet the credit needs of the communities they serve.

With the merger, BoA should remain the nation’s second largest depository organization, with total consolidated assets of approximately $1.3 trillion.

All three of the recent, Fed-approved merger deals must be consummated by or prior to mid-March 2006.

In Charlotte, N.C., Wachovia Corp. recently announced it completed acquiring AmNet Mortgage Inc.

AmNet’s nationwide network with over 7,000 brokers and mortgage origination capabilities “creates enhanced opportunities for revenue generation in our securities business,” Wachovia said in the statement.

AmNet, which expects to push volume up to $15 billion from last year’s $9 billion and says the merger has initiated its “journey to be among the top wholesale bankers in the nation,” will retain its name, as well as its San Diego, Calif.-headquarters, and operate as a subsidiary of Wachovia Bank, according to the announcement.