SCRAPPING AWAY: MARKET CONDITIONS MAKE FOR A ROUGHER RIDE FOR THE STATE'S HOMETOWN BANKS AND CREDIT UNIONS.

North Carolina's financial institutions were challenged in the past year by escalating interest rates that slowed home loans and boosted the cost of funds. Still, more than half of the institutions on Business North Carolina's annual list of the state's 50 biggest banks and credit unions based in the state reported a return on assets of more than 1%, which is a traditional industry benchmark.

Revenue also increased at most institutions, boosted by higher rates charged on loans amid the increased inflation. The gains were more modest than in 2021, when many banks benefited from record activity in home loan originations and refinancings, along with robust fee income from Payment Protection Program lending. In 2022, and early this year, the housing market has lost much of its luster, while memories of the PPP are fading.

Only one N.C.-based left the list in the last year because of a takeover: Greenville-based Union Bank was bought by Pittsburgh-based FNB Corp. for $117 million.

The rankings are based on information supplied by New York-based S&P Global Market Intelligence.

10 INSTITUTIONS THAT MADE NEWS IN THE LAST YEAR

[2] Truist Financial

Being a big super-regional bank with branches in 17 states has its upsides. But Truist faced major pressure this spring amid the collapses of Silicon Valley Bank and First Republic Bank. Investors feared that deposits of big regionals would move to the megabanks because of unrealized losses in Truist's bond portfolio, along with concerns over real estate credit quality. The company raised about $3 billion by selling a minority stake in its insurance brokerage. Its dividend yield was 7.7% in mid-May.

[3] First Citizens BancShares

It occurred this year, not in 2022, but Deal of the Year honors go to the Holding family-controlled bank after it bought the failed Silicon Valley Bank in a negotiated deal with the Federal Deposit Insurance Corp. The company's market value increased 70% to $14 billion following the deals closing in March. Investors believe that First Citizens can profit handsomely from the California-based company's operations. The move followed a solid 2022 in which the bank's revenue and profit doubled after the purchase of specialty lender CIT Group.

[4] State Employees' Credit Union

It's not your grandfather's SECU. The second-largest U.S. credit union is undergoing major changes in policies and corporate culture, two years after the board hired Jim Hayes as CEO. SECU now uses credit scoring...