Uncle Sean's Update - 8/28/26

​Happy Friday!!!
 
Here is the Uncle Sean Update for 8/28/26 (subscribe here for free):
 

• The BEA released July PCE coming in flat over last month showing an annual 3.7% (June was 3.7%) with Core PCE coming in at 3.3% (June Core PCE was 3.3%).
  • Worth noting that spending on Goods was actually down again (ref Table 2.8.7 - driven mostly by a 2.7% decrease in gas and other energy as well as a 0.9% decrease in furnishings and durable household equipment). 
  • The personal savings rate was back up to 3.0% (June was very low at 2.7%).

 

• The BEA also released 2nd Quarter GDP (second estimate) and was the same as the first estimate of 1.5%.  Minimal adjustments reflect an upward revision to consumer spending that was partly offset by an upward revision to imports (negative to GDP).
  • The upward revision to consumer spending reflected an upward revision to services that was partly offset by a downward revision to goods.
    • Real final sales to private domestic purchasers was revised up from 3.9% to a robust 4.2% reflecting continued consumer strength.

 

• With inflation still running well above the Fed 2% target, many eyes are focused on the Jackson Hole Economic Symposium from Aug 27-29, “Financial Innovation: Implications for Payments and Policy."
  • Here are the Keynote remarks by Chairman Warsh at the 2026 Jackson Hole Economic Policy Symposium - Federal Reserve Board which I found to be slightly on the hawkish side with Chairman Warsh stating, “…I would be hard pressed to describe broad financial conditions as restrictive.”  CNBC has a good summary.
    • The next rate-setting FOMC meeting is scheduled for Sept 15-16 and includes a Summary of Economic Projections.

 

• The FDIC released their Quarterly Banking Profile report for 2Q2026 displaying another very strong quarter.  Some key updates:
  • Higher earnings with an ROA of 1.37% percent. Domestic deposits increased for the eighth consecutive quarter and loan growth was strong citing strong capital and liquidity levels.
  • Unrealized Losses on Securities still total $326.7B rising slightly from $325.1B the prior quarter.  This was really the only slightly negative indicator I saw.  With earnings and loan growth so strong, I’m surprised that more institutions haven’t sold their lower yielding securities yet.
  • Provisions declined while asset quality metrics improved.
  • DIF Reserve Ratio climbs to 1.48% ($161.1B) up from 1.43% ($157.4B) in 1Q2026 and up considerably from 2Q2025 of 1.36% ($145.3B).
  • The number of “problem banks” (CAMELS composite rating of 4 or 5) declined from 54 to 47.

 

• 👀 Another CU acquisition of a bank (this makes 6 announced deals so far for 2026)…  Gulf Winds Credit Union (charter 68694; total assets $1.4B) to acquire Madison County Community Bank (FDIC 35056; total assets $212M) from Madison Community Bancshares Corporation (PCO FR 3619702).
  • This is a highly stereotypical CU acquisition of a bank (data based on Jun 2026 call report – source: FedFis - FinTech | Banking | Data):
    • Much larger CU (total assets $1.4B) acquiring a small bank (total assets $212M); Bank has low-cost deposit base of $197M at a Total Cost of Deposits of only 1.67%.
    • Bank loan portfolio is mainly on the commercial side - consists of CRE (37.44% of total loans) of $44M; Construction & Land Development (18.87% of total loans) of $22.3M; and C&I (11.96% of total loans) of $14M with Yield on Total Loans of 7.4%.

 

• Unfortunately, we had our fifth bank failure for 2026 last week.  Tioga-Franklin Savings Bank (FDIC 33802; total assets $68M; total deposits $67M) was closed on Aug 21. The bank had a FedFis Rating© of 4.72 as of Jun 2026 placing them in the lowest possible percentile of all U.S. banks.  Second Federal Savings and Loan Association of Philadelphia (FDIC 29627; total assets $46M), to assume all deposits and purchase substantially all assets of Tioga-Franklin Savings Bank.  For more info, check out the FedFis Bank Failure Alert here - http://www.fedfis.com/bulletin/bank-failure-alert-tioga-franklin-savings-bank.
  • 👉 In a rare move, Second Federal Savings and Loan Association of Philadelphia will also be converting to Tioga-Franklin Savings Bank core processor.  While rare from a bank failure perspective, if you look at this akin to a merger of equals (MOE) type of transaction then it makes much more sense (especially considering Second Federal is smaller than the failed Tioga-Franklin Savings Bank).

 

• De Novo watch…
  • Itaú Bank, National Association has gained preliminary conditional approval from the OCC with the understanding that the proposed Bank will apply for stock in a Federal Reserve Bank in accordance with 12 USC 2221 and will obtain deposit insurance from the FDIC.  Per the decision - Itaú Bank, National Association will be headquartered in Miami and will focus on high- and ultra-high net worth individuals with Brazilian and Latin American connections; and will open with $507 million in capital.
  • VALT Bank, National Association has obtained FDIC approval (initial capital requirement of $25M and 9% Leverage ratio) to establish a proposed national bank to be headquartered in Eagle, Idaho.  The Bank plans to operate as a fully digital business bank focused on serving small to midsized businesses (SMBs) in the U.S.  This Banking Dive article has a very good summary - VALT Bank gets FDIC’s nod | Banking Dive.
  • Nissan Motor Acceptance Corp has withdrawn its application to form Nissan Bank US (a Utah ILC) and confirmed on the Utah DFI website -  dfi.utah.gov/general-information/application-status/.

 

• Nacha logs a couple of new preferred partners:
  • Flagright is now a Nacha Preferred Partner for ACH Compliance, Fraud Monitoring, and Risk and Fraud Prevention.
  • Finastra becomes a Nacha Preferred Partner for ACH Experience, ISO 20022, and Risk and Fraud Prevention.

 

• After years of serving credit unions, Movemint announced the launch of its embedded personalization technology to the banking sector enabling banks to create campaigns that drive engagement by presenting personalized experiences to its customers.

 

• 💥 Another BIG win for InvestiFi as Stanford Federal Credit Union (charter 13392; total assets $4.6B) partners with InvestiFi to bring embedded investing to its 96,000 members directly within the CU’s existing online and mobile applications.

 

• WestStar Credit Union (charter 68227; total assets $273M) selects BOND.AI to enhance its member engagement and deliver more relevant products, services, and educational opportunities.
  • “WestStar will leverage BOND.AI’s agentic artificial intelligence platform, Autopilot, to analyze member financial activity and identify opportunities where a product, service or financial resource may be relevant to an individual member’s needs. By putting data-driven insights to work behind the scenes, WestStar can move toward a more personalized approach to member engagement delivering the right message, to the right member, at a more relevant time.”

 

• OMNICOMMANDER makes headlines again this week as Golden Triangle Federal Credit Union (charter 8298; total assets $38M) chose OMNICOMMANDER for its new website design to simplify access to online banking, loan rates, credit cards, online loan applications, payment options, financial calculators, and other commonly used resources. 🤙
  • Check out the redesigned website here - https://www.gtfcu.coop/

 

• 👉 Speaking of my friends at OMNICOMMANDER (veteran owned and operated) – check out this LinkedIn post where they recently donated several Macs and computer monitors to Tech For Troops, an organization that takes computers and other technology, refurbishes it and gets it into the hands of our veterans who can put it to use.  GREAT work!!! 👏🫡

 

• Tyfone unveiled nFinia® Reimagined, Tyfone's next-generation digital banking platform.  “Combining a modern, intuitive user experience with Fathom, Tyfone's native-AI intelligence woven throughout the platform, nFinia transforms how account holders interact with their financial institution while helping community financial institutions remain at the center of every financial relationship.”
  • iTHINK Financial Credit Union (charter 68663, total assets $2.4B) will be the first Tyfone customer to launch Fathom to its members, with the AI-powered experience expected to go live this fall.

 

• Notable FinTech funding for the week:
  • Imprint (modern co-branded cards and rewards, deposit accounts, and installment plans) announced $2B in new Debt Funding as institutional demand grows.
  • Pay.com.au (Australia’s largest business rewards platform) is launching in the US as PayRewards and has raised $28M in new Series E funding to support the US launch.  Check them out at Earn Credit Card Rewards On Vendor & Bill Payments | PayRewards.
  • Socure (AI-native trust infrastructure for global identity and risk intel) raised $156M in growth capital at a $5.2B valuation and announced the acquisition of Fravity, an agentic platform aimed at automating fraud, risk and compliance operations. 
    • The PR emphasized that Socure closed 2Q 2026 with $364 million in total ARR, 63% year-over-year ARR growth, 133% net dollar retention, and 0.01% logo churn across more than 3,000 customers. International volume has grown from near zero to a double-digit share of Socure’s network in the past two years. 🚀

 
 
Random Uncle Sean stuff:

• We lost the legendary Dolly Parton this week at the age of 80. Take a moment to view Remembering Dolly Parton | January 19, 1946 – August 25, 2026, in particular her bio section which is nothing short of amazing.
  • The best thing I read all week was a testimony on social media (I forgot the OP or I would source them - sorry).  Essentially said that Dolly Parton’s influence was so widespread that if you are in the Gen X generation – It’s highly likely that your grandparents knew and loved her, your parents knew and loved her, you knew and loved her, and your children knew and loved her.  A minimum of 4 generations of influence and fans.  And be sure to check out Dolly Parton - YouTube channel if you need a Dolly-fix 🥲❤️.
• 🤖 Highly impressive, somewhat terrifying, and sometimes hilarious…  Check out these Scenes From the 2026 Beijing World Humanoid Robot Games (Bloomberg) and these short video clips (AP News).
• Alright – let’s wrap this week up with some obligatory Dad / Bad Jokes:
  • Remember…  You’re never too old to learn something stupid!!! 🤠
  • Kale has negative calories because its caloric count is less than the energy expended throwing it up! 🤢😅  
  • What did the DNA say to the other DNA???  “Do these genes make me look fat?” 🧬😂
  • When studying chemistry, NEVER drink water…  Water dilutes concentration… 🤔😉
  • And my favorite this week…  Normalize booing in the office!!! 😀📣🙌

 
 
“The world needs good people - be one of them.”
 
Have a GREAT weekend and please stay safe!
 
Uncle Sean
 
Sometimes known as Sean Mayo – contact me directly for scope and pricing of custom reports / analysis projects at [email protected] | 214-604-6961 – or you can contact FedFis Sales Team at 512-960-0911 | [email protected] #FedFisHasTheData FedFis
 
FedFis, LLC disclaimer – The views and opinions of Uncle Sean are of his own and may not necessarily represent the views, endorsements, and/or opinions of FedFis, LLC and its affiliates – we all know he’s a little bit different; but that’s why we love him.