BNY, Mizuho sign 'non-competing alliance'; Kapitus acquires Ten Oaks

October 25, 2024 4:00 PM

In this week's banking news roundup: The Bank of New York Mellon and Japan's Mizuho Bank entered an agreement to grant their corporate clients access to the other's international trade network; New York-based lender Kapitus acquired Ten Oaks Commercial Capital; North Carolina's First Carolina Bank agreed to acquire Pennsylvania's BM Technologies; and more.

BNY, Mizuho Bank sign ‘non-competing alliance’ on trade

The Bank of New York Mellon and Japan's Mizuho Bank will each provide their corporate clients with access to the other bank's international trade network under an agreement that's being billed as the first of its kind.

The two companies described the agreement in a press release as a "non-competing alliance." The deal is expected to enable both BNY and Mizuho to enhance their offerings for corporate clients in Asia without either bank making significant investments in their trade infrastructure.

BNY and Mizuho explained the rationale for the agreement by pointing to rising costs tied to know-your-customer compliance requirements.

Corporate customers of banks can see their trade opportunities limited by the fact that their own bank doesn't have a correspondent banking relationship with financial institutions in other countries. The deal between BNY and the banking arm of Mizuho Financial Group expands the size of both banks' international networks. —Kevin Wack

Kapitus’ acquisition allows expansion into equipment finance

Kapitus has acquired Ten Oaks Commercial Capital as the small and midsize business lender expands into equipment finance.

"Securing equipment finance has become increasingly difficult as both traditional and online lenders have tightened requirements, and many independent equipment finance companies have been absorbed into the banking system," Chief Operating Officer Ben Johnston said in a press release Friday.

The New York-based lender is launching an equipment finance arm with the acquisition of Ten Oaks, Kapitus said. The company aims to use Ten Oaks' vendor and direct origination channels to grow its third-party funding capabilities.

Kapitus said it would begin funding transactions in early 2025. The terms of the deal were not released.

Kapitus said it has provided more than $6.5 billion in growth capital to nearly 55,000 small businesses in the United States. Its products include term loans, sales-based financing, SBA loans, equipment leases and revolving lines of credit.—Mary de Wet

First Carolina Bank to buy BM Technologies

First Carolina Bank in Rocky Mount, North Carolina, agreed to acquire BM Technologies in Radnor, Pennsylvania. The $3.1 billion-asset First Carolina said in a press release that the $67 million cash deal was expected to close in the first quarter of 2025.

Notably, BM Technologies had in 2021 announced a deal to buy First Sound Bank in Seattle, but that transaction later fell through.

BM Technologies would operate as a wholly owned subsidiary of First Carolina and keep its name. Jamie Donahue, its president and chief technology officer, would lead the fintech.

"This transaction not only delivers a significant premium to our stockholders but will also bring enhanced banking services and technology" to the bank's customers, Luvleen Sidhu, BM Technologies' chair and CEO, said in a separate press release.

BM Technologies stockholders would receive $5 per share, which represented a 55% premium to BM Technologies common stock on Oct. 24. —Jim Dobbs

JPMorgan hires NOAA chief scientist to advise clients on climate

JPMorgan Chase has hired a senior climate scientist to advise its corporate and investment banking clients on how to navigate the impacts of climate change.

Sarah Kapnick, appointed by President Joe Biden in 2022 as chief scientist for the National Oceanic and Atmospheric Administration, will join JPMorgan as global head of climate advisory, according to an internal memo seen by Bloomberg News.

As JPMorgan's clients "seek to realize the economic opportunities of the transition to a low-carbon economy, and build resilience to extreme weather and climate events," they will benefit from Kapnick's expertise and perspective, Troy Rohrbaugh, co-chief executive officer of the firm's commercial and investment banking unit, said in the memo.

Rama Variankaval, global head of corporate advisory in commercial and investment banking, added that corporate efforts to decarbonize their operations "are major trends influencing capital formation." Kapnick's insights "will help our clients see around corners and advance" their strategies in this area, he said. —Alastair Marsh, Bloomberg News

Astrid Vermeer joins MBA as senior vice president and CFO

Astrid Vermeer has joined the Mortgage Bankers Association as senior vice president, chief financial officer, the industry group said this week. Vermeer will oversee MBA's managerial accounting and financial operations, including financial reporting, budgeting, forecasting and risk management.

"Astrid is an accomplished leader who comes to MBA with vast experience and an exceptional track record of providing executive-level leadership and financial management at top organizations," President and CEO Bob Broeksmit said.

Most recently, Vermeer served as chief financial and administrative officer at the Perkins School for the Blind. Prior to the Perkins School, she served as CFO for both the International Foundation for Electoral Systems and the International Services for the American Red Cross and has held finance roles at the World Wildlife Fund. —Editorial Staff