BankTown Banking & Finance News

[RANYC]

In case anyone wishes to indulge me, here's an exercise I'll put in front of the Group: 

• regardless of whether you believe Charlotte is a top banking center or not, brainstorm reasons why outsiders might doubt Charlotte's status as such AND what might Charlotte do to address those reasons...

[ArchiCLT]

Wells Fargo announces $500 million worth of improvements in the Charlotte area. Includes a new parking deck and other renovations at the Customer Information Center in University City.

https://www.wsoctv.com/news/local/wells-fargo-announcing-500-million-worth-improvements-charlotte-area/32KUKV45Q5CW5IRXV3S4XA7OQA/

[kermit]

Chase is adding 500 teach jobs and expanding Buckhead office space by 40,000 sq ft in Atlanta. They already had a big Atlanta presence, I am not suggesting we could have landed them, but it is interesting they are adding office space in Atlanta. 

https://www.bizjournals.com/atlanta/news/2023/04/06/jpmorgan-chase-to-add-500-jobs.html

Edited April 6, 2023 by kermit

[SydneyCarton]

I’m surprised that they didn’t send those jobs to Dallas


Sent from my iPhone using Tapatalk

[CLT2014]

The most prominent Wells Fargo leader based in Charlotte, Mary Mack, Head of Consumer and Small Business Banking, will retire this summer.

The role will move to Sam Van Beurden who leads technology, is based in New York City, and joined from Chase.

With Sam's move to a business lead, Tracy Kerrins will become the Head of Technology. Tracy is based in Charlotte and currently leads Consumer Bank Tech.

Edited April 14, 2023 by CLT2014

[SydneyCarton]

Wells’ leadership is pretty much all based in NY, but I think that Clt has the most Wells’ employees. That’s still pretty good for Clt.


Sent from my iPhone using Tapatalk

[kermit]

It looks like JP Morgan Chase’s purchase of the First Republic stump has resulted in it exceeding the 10% deposit cap that has prevented large acquisitions by BoA for more than a decade now. While I certainly can’t predict what regulators and the BoA C-suite will do, I wonder if we are about to enter a new growth phase for BoA? Certainly seems like the price is right on a bunch of regionals, although I am not sure what BoA would really gain in the absence of another fire sale like First Republic.

Isn’t it also time for the punitive choke chain to come off of Wells?

EDIT (after CLT2014 post below):

This doesn't really tell us anything about BoA's participation in the auction but the WSJ does say this:

Quote

... JPMorgan was willing to do what it took to win what the FDIC called a “highly competitive bidding process” for First Republic.

https://www.wsj.com/articles/with-first-republic-jpmorgans-dimon-gets-over-financial-crisis-laments-6d19041f

EDIT 2: and CNBC reports:

Quote

Bank of America opted not to make a final bid after being involved in earlier discussions, CNBC has learned, according to other people with knowledge of the situation.

https://www.cnbc.com/2023/04/29/first-republic-frc-jpmorgan-chase-bank-of-america-asked-for-bids.html

Edit 3: And from CBJ: https://www.bizjournals.com/charlotte/news/2023/05/01/analysts-take-bofa-opted-out-first-republic-bid.html

(they speculate BoA market presence on the West Coast might have discouraged a bid)

Edit 4: sounds like the 10% cap has never applied when purchasing a failed bank

”JPMorgan was allowed to bypass a restriction that normally would prevent it from buying other banks because it holds more than 10% of all U.S. deposits. The rule doesn’t apply for the purchase of a failing bank.”

https://www.wsj.com/articles/how-washington-got-on-board-with-a-big-bank-deal-for-first-republic-609188aa

Edited May 2, 2023 by kermit

[CLT2014]

2 hours ago, kermit said:

It looks like JP Morgan Chase’s purchase of the First Republic stump has resulted in it exceeding the 10% deposit cap that has prevented large acquisitions by BoA for more than a decade now. While I certainly can’t predict what regulators and the BoA C-suite will do, I wonder if we are about to enter a new growth phase for BoA? Certainly seems like the price is right on a bunch of regionals, although I am not sure what BoA would really gain in the absence of another fire sale like First Republic.

Isn’t it also time for the regulatory leash to come off of Wells?

I believe Bank of America was specifically invited to the party by the FDIC to bid on First Republic and declined to participate in final bids. My assumption is regulators will argue BofA had the opportunity to grow above the 10% cap by participating in a bid... but by removing themselves and JPMorgan continuing to bid with a willingness to take on the risk / potential losses of a failed bank to help stabilize the banking system.. they don't owe BofA any favors. If BofA put in a final bid... might be a different story of making it "fair." 

Edited May 1, 2023 by CLT2014

[KJHburg]

Bank of America owned First Republic at one time as they were formerly owned by Merrill Lynch and when BofA bought them they r sold it but in the long run they would have been better keeping it.   So now the 2nd 3rd and 4th largest bank failures in US history have happened since March 1 2023.  Only Washington Mutual was bigger.  #2 First Republic, #3 Silicon Valley Bank #4 Signature Bank.

And the commercial mortgage issues are just beginning.  All of this causes nervousness in BankTown.  I do believe lenders will restrict loans even further now.  

[RANYC]

5 minutes ago, KJHburg said:

Bank of America owned First Republic at one time as they were formerly owned by Merrill Lynch and when BofA bought them they r sold it but in the long run they would have been better keeping it.   So now the 2nd 3rd and 4th largest bank failures in US history have happened since March 1 2023.  Only Washington Mutual was bigger.  #2 First Republic, #3 Silicon Valley Bank #4 Signature Bank.

And the commercial mortgage issues are just beginning.  All of this causes nervousness in BankTown.  I do believe lenders will restrict loans even further now.  

Unless cash has settled in bank accounts, I don’t know if any arranged financing is completely finalized or secured.  Any pre-launch commercial project has a measure of uncertainty.

[kermit]

Should we be worried about Truist? Feels (to me) like they are caught in the general downdraft for regionals but otherwise well positioned to weather the storm. Seems like they have relatively few uninsured deposits and lots of sticky customers so interest rates on their bond portfolios shouldn't be a big issue for them? Commercial RE lending also appears to be a non-issue for TFC in particular (but FNB may be of concern locally)

Having said that, the market is certainly suggesting that I am overlooking something.

#Idontworkatabank

 

Edited May 4, 2023 by kermit

[KJHburg]

Call this one and Visa one missed for Charlotte.  I heard rumors of VISA Inc. looking in Charlotte for an office about a year ago  but they opening an office in Atlanta.  In fairness ATL is considered Transaction Alley due to all the credit card processing companies in that metro area. 

From ATL Business Chronicle:

""Financial services giant Mastercard Inc. plans to open office space in Atlanta as corporations slow office expansions or cease them altogether.

Mastercard (NYSE: MA)is seeking around 63,000 square feet of space at Ponce City Market, one of the most in-demand and priciest office developments in the city, according to city permit filings and sources with knowledge of the market. With this size, Mastercard's offices could house around 300 to 350 employees, according to real estate estimates. Mastercard is the latest financial services giant to seek opening an office in Atlanta — and the latest to look into space at Ponce City Market. In March of last year, Capital One Financial Corp. announced it was opening a 15,000-square-foot office at Ponce. In September 2021, Visa Inc. confirmed it was opening up a 123,000-square-foot office at Promenade Central, where it would house 1,000 jobs. That space opened in February.""

[J-Rob]

This seems like good news, though the article notes they don't expect increased staffing levels. Per CBJ, TIAA Trust will move headquarters from Jacksonville to Charlotte. Better Charlotte than New York.  I didn't know that TIAA is selling TIAA Bank already.  They just bought it a few years ago didn't they?

Does anyone know if TIAA is hybrid? Do they require some time in the office?

https://www.bizjournals.com/charlotte/news/2023/05/23/tiaa-moving-trust-business-to-charlotte-campus.html

[KJHburg]

18 minutes ago, J-Rob said:

This seems like good news, though the article notes they don't expect increased staffing levels. Per CBJ, TIAA Trust will move headquarters from Jacksonville to Charlotte. Better Charlotte than New York.  I didn't know that TIAA is selling TIAA Bank already.  They just bought it a few years ago didn't they?

Does anyone know if TIAA is hybrid? Do they require some time in the office?

https://www.bizjournals.com/charlotte/news/2023/05/23/tiaa-moving-trust-business-to-charlotte-campus.html

My nephew works for TIAA and they work or at least he is told to 3 days in the office 2 remote.  Yes TIAA is selling that bank after owning it a few years not sure I know the back story on it. 

[ClassicColtrane]

2 hours ago, KJHburg said:

My nephew works for TIAA and they work or at least he is told to 3 days in the office 2 remote.  Yes TIAA is selling that bank after owning it a few years not sure I know the back story on it. 

Goodness it would be amazing if we could use them to kick off that Carson & Tryon tower by Crescent. I want that project to happen so bad.

[CLT2014]

I'd be curious how much of TIAA Bank's assets after the sale will stay with the new TIAA Trust bank. I'd think it will be a smaller share and be a very small team / banking entity that would easily fit in TIAA's existing office square footage. TIAA Bank is only #61 by assets and #71 by deposits. After being split with the sale, TIAA Trust probably won't even by a Top 100 bank by either metric. 

Edited May 23, 2023 by CLT2014

[J-Rob]

24 minutes ago, CLT2014 said:

I'd be curious how much of TIAA Bank's assets after the sale will stay with the new TIAA Trust bank. I'd think it will be a smaller share and be a very small team / banking entity that would easily fit in TIAA's existing office square footage. TIAA Bank is only #61 by assets and #71 by deposits. After being split with the sale, TIAA Trust probably won't even by a Top 100 bank by either metric. 

Yeah, they already have a nice big campus that may very well be underutilized in a hybrid world. And they stated they don't anticipate an increase in headcount because of TIAA Trust. Besides, if for some reason they decided to expand footprint in Charlotte, it might make sense to go across the street from their current campus to the abandoned Centene campus at a highly discounted rate. 

[kermit]

Doubt this will get much traction since there was no precipitating event in the news  (that I know of) but BoA is being targeted for its ‘wokeness’ in a tweeter ad I was just served (most of my twotter ads these days are from cheesy Chinese tool and gadget makers). Their concerns seem awfully vague for this sort of effort (how many Americans have ever heard of a social score? Anyone with a phone already has their driving monitored…). I don’t want to link to them but it is being pushed using BankofUnAmerica urls.

Anti-business (pro-regulation) republicans puzzle and amuse me. 

Edited June 11, 2023 by kermit

[go_vertical]

It's so frustrating how "wokeness" has become a blanket term for things some people don't like or understand.

[KJHburg]

In a story about a retirement of an US Bank exec in Charlotte a few nuggets of information.

""Kelligrew, U.S. Bank's top Charlotte-based executive, is slated to retire on June 30. He joined the Minneapolis-based bank in 2009 and was promoted to vice chair and head of corporate and commercial banking in 2016. The division serves middle-market, large corporate and commercial real estate businesses.  When he joined U.S. Bank 14 years ago, the company had 100 employees here. It currently has more than 1,200 locally.  Kelligrew said U.S. Bank's bond business went from $0 in revenue in 2009 to now a few $100 million a year, and it continues to grow. Prior to U.S. Bank, he helped expand corporate bond businesses at Wachovia and BofA.""

https://www.bizjournals.com/charlotte/news/2023/06/22/us-bank-jim-kelligrew-retiring.html?

[kermit]

Fintech hubs are like… noses… everybody’s got one:

https://www.wsj.com/articles/WP-WSJ-0000956050. [probably paywalled]

Quote

A multistate race

Other cities and states share Salt Lake City’s ambitions to be a fintech hub, from regional financial centers like Atlanta and Charlotte to places not currently associated with bases for fintech or financial services, like West Virginia and Wyoming. For its part, the Salt Lake City metro area attracts such investments due to its low costs and a talent pool that has grown in recent years, thanks largely to graduates from nearby universities.

 

[KJHburg]

Wells Fargo will occupy 95% of the former Duke Energy Center that they have always owned since built.  

""Wells Fargo & Co. (NYSE: WFC) plans to invest upwards of $200 million into two uptown Charlotte office towers that will eventually house its East Coast headquarters.

The San Francisco-based bank filed building permits with Mecklenburg County last week for the renovation of the top three floors at 550 South Tryon, the former Duke Energy tower. Richard Henderson, Wells Fargo head of corporate properties, said construction is underway on floors 46, 47 and 48 with work expected to be completed by the end of this year. That work will total $12.8 million.

Wells Fargo is in the process of assuming space vacated by Duke Energy Corp. (NYSE: DUK) and will eventually occupy 95% of the tower at 550 S. Tryon St. It and Three Wells Fargo Center will undergo major renovations to offer its uptown employees a more modernized workspace with upgraded amenities.

Henderson said the 48th floor will provide Wells Fargo employees with a series of functional, drop-in work stations that will act like coworking space, whereas the 46th and 47th floors will become new meeting and event spaces.

"Just in thinking about people coming back into the office, our goal, as we rightsize our space, is to make sure we have the right amenities for our employees," he said. "People are working flexibly, and they’re looking for variety in the workplace. (The top floor) also has amazing views of the city, so we wanted to have that shared so everyone can access it."""

https://www.bizjournals.com/charlotte/news/2023/06/29/wells-fargo-former-duke-energy-building-uptown.html?

[SydneyCarton]

Banking is one of the few industries that expects people back in the office, so Charlotte still seems to have  strong demand for new office space.

Edited June 29, 2023 by SydneyCarton

[KJHburg]

20 hours ago, SydneyCarton said:

Banking is one of the few industries that expects people back in the office, so Charlotte still seems to have  strong demand for new office space.

I know someone who deals with Hundreds of Millions of dollars in investment and he could not wait until get back to the office.  When talking to people a dog in the background or doorbell at home does not cut it.    Finance in general wants people back in the office at least 3 days a week if not 5. 

Edited June 30, 2023 by KJHburg

[SydneyCarton]

1 hour ago, KJHburg said:

I know someone who deals with Hundreds of Millions of dollars in investment and he could not wait until get back to the office.  When talking to people a dog in the background or doorbell at home does not cut it.    Finance is general wants people back in the office at least 3 days a week if not 5. 

Hopefully, the Enterprise office building will get a tenant.