On March 14, 2018, the Senate passed, 67-31, the Economic Growth, Regulatory Relief and Consumer Protection Act, or S. 2155. While it may lack a catchy name, its substance is of potentially great importance to community banks.
The following summary focuses on the impact of the bill for depository institutions with less than $10 billion in consolidated assets. The bill would also
Jonathan and I discuss deal protections and considerations – from the initial emotions of deciding to sell through deal signing in this latest episode of The Bank Account.
This episode has, in my opinion, some great information for banks looking to undertake M&A activity, from either the buyer or seller’s perspective. But, I’m most impressed with our smooth transition from friendly banter about our upcoming Ragnar race to our substantive discussion. (Of course the
Jonathan and I are back in our studio, and took this opportunity to talk a little about what we’re seeing from our clients, particularly as it comes to reinvesting their tax savings into future opportunities. Before digging into substance, we first take a little time on the therapist’s couch to address Jonathan’s experience at the College Football National Championship Game. Only 190 days until college football is back!
For the next several The Bank Account episodes, we’re on the road at Bank Director’s Acquire or Be Acquired (AOBA) Conference. In our first installment from AOBA, we highlight our respective take-aways from the first day of AOBA and then sit down with Rory McKinney, Managing Director and Head of Investment Banking for D.A. Davison & Co. to discuss Rory’s outlook for bank M&A activity in 2018.
It looks like we’ll end 2017 with a total of 263 bank and thrift transactions, representing a slight increase in the number of deals over 2016 (250), but well below 2014 and 2015 levels (307 and 294, respectively). However, in light of the decline in total number of banks (and the dearth of de novo activity), 2017 basically equaled 2014 and 2015 transaction activity, with approximately 4.5% of institutions at the beginning of the year exiting through a business combination. (2016’s 250 transactions represented approximately 4.0% of the outstanding banks at the beginning of 2016.)
We are looking forward to running the M&A Simulation at Bank Director’s 2018 Acquire or Be Acquired Conference with our friends at FIG Partners. This is the second year we’ve teamed up with FIG Partners to present a simulation of the community bank merger and acquisition sale process. We’ve identified the basics of
We are looking forward to running the M&A Simulation at Bank Director’s 2018 Acquire or Be Acquired Conference with our friends at FIG Partners. This is the second year we’ve teamed up with FIG Partners to present a simulation of the community bank merger and acquisition sale process. We’ve identified the basics of this year’s fictional banks, and are looking forward to another exciting simulation.
The simulation is an exclusive session at Acquire or Be Acquired, is open to 45 bank attendees only and fills up quickly. If you’re planning to attend AOBA and want to ensure your spot in the simulation, please contact us. If you’re interested in attending and haven’t already registered the conference, please contact us to receive our sponsorship code for a $400 discount.
The 2017 simulation involved competing bidders for a billion dollar community bank, identified as Bank A. Bank B, a $1.3 billion institution, offered a merger of equals opportunity, hoping that one plus one could equal three, while Bank C, a $6 billion institution with strong organic growth, was able to win the hearts and minds of Bank A with a strong all stock offer. The simulation ultimately mirrored what we often see, small buyers must be very creative or seek opportunities that are not coveted by larger, more highly valued public buyers. See our write-up of the 2017 M&A Simulation for additional information.
For potential buyers and sellers, the M&A simulation offers a unique ability to “look inside” the minds of buyers and sellers in a competitive, but low stakes, situation. We encourage everyone to join us in Phoenix in January.
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