The hidden jewel of value investing, community banking covers the latest developments in America’s consolidating financial sector.
As part of the conversion and reorganization, the Bank would become a wholly-owned subsidiary of a new holding company. Shares of common stock of the Company held by persons other than the MHC (whose shares would be canceled) would be converted into shares of common stock of the new holding company pursuant to an exchange ratio generally intended to preserve the percentage ownership interests.
Get Daily Updates
Subscribe to DailyAlts Today to get Alternative Investment news, insight, and commentary delivered straight to your inbox every day.
More Stories on Community Banking
Tinker Federal Credit announced Thursday that it will purchase “substantially all of the assets and operations” of Prime Bank in Edmond, Oklahoma. The target has roughly $285 million in assets, according to a press release.
“We’re excited about the prospect of providing expanded services to TFCU members and to customers of Prime as well,” announced TFCU President and CEO Michael Kloiber.
Gulf Capital Bank just announced the formation of the first de novo bank in Houston, Texas in more than a decade. The formation of Gulf capital is also the largest de novo raise in Texas state history. Gulf Capital has said they intend the personal relationship touches of a traditional community bank combined with the ease of state-of-the-art banking technology and global connections provided by a group of Houston’s business and civic leaders. The bank is located on the first floor at One Riverway, at the corner of Woodway and South Post Oak Lane.
Fintech firm Reich & Tang has reached a deal with Smiley Technologies, a developer and provider of core banking solutions to U.S community banks.
Community banks typically struggle to keep up with their larger competitors on high technology solutions. Smiley Technologies has worked with smaller banks to modernize and streamline core banking applications and services. These services help improve the efficiency of data management.
Pacific Premier Bancorp (NASDAQ: PPBI), the holding company of Pacific Premier Bank, announced plans to purchase and Opus Bank (NASDAQ: OPB). Terms of the deal set the value at about $1.0 billion, or $26.82 per share. Pacific Premier expects the transaction to be 14% accretive to EPS in 2021 with a 1.8-year earn back period to tangible book value per share based. Opus is headquartered in Irvine, California with $8.0 billion in total assets, $5.9 billion in gross loans and $6.5 billion in total deposits as of December 31, 2019.
Tim Melvin is attending the conference in Phoenix this week. At the top of the list is competition form fintech firms and big tech companies. Millennials are more focused on technology than one-on-one discussions in a branch. They have emerged as the target market for fintech companies and big tech companies like Amazon (AMZN) and Apple (AAPL). It is a top concern that fintech will disrupt commercial banking in the same way it did to consumer banking in recent years.
Tim Melvin is attending the Bank Director Magazine Acquire or Be Acquired Conference in Phoenix, AZ this week. Over 1,000 bankers have gathered to talk about M&A and growth strategies in the current low growth economy.
The American Banking Association has released its outlook for merger and acquisition activity in the banking sector in 2020.
The ABA finds that the forces contributing to the consolidation of the industry show little to no sign of dissipating. Larger banks have an advantage as they can spread the costs of things like cybersecurity and regulatory compliance over a more extensive asset base. That gives them a significant advantage over smaller banks. The numbers bear out that theory as larger banks, in aggregate, have higher returns on assets and equity than smaller institutions.
Online bank Marcus from Goldman Sachs Group has finally come to mobile devices. The Wall Street financial giant launched its long-awaited app for customers last week. The lack of an app has been an ongoing source of frustration for customers who could only see balance transfers, account information and make payments on loans with their phones and other devices.
The deal creates a new firm with $21 billion in assets. Bancorp South Bank announced the completion of its acquisition of Texas First Bancshares, the parent company of Texas First State Bank. Following the deal, Bancorp South now has $21 billion in assets. It operates approximately 310 full-service branch locations as well as additional mortgage,…
Evans Bancorp announced this week plans to purchase FSB Bancorp (FSBC) for approximately $34.7 million.
The price of $17.80 per share for FSB Bancorp will be paid 50% in cash and 50% in the stock.
The transaction is subject regulatory and shareholder approval and is expected to close in the second quartered 2020
Cambridge Financial Group is acquiring Melrose Bancorp (MELR) for $25 a share in cash. The mutual holding company for Cambridge Savings Bank will receive quite a boost after this deal. Cambridge would have assets of approximately $4.7 billion and a branch network of 17 full-service offices. The transaction is subject to regulatory and shareholder approval and should close in the second quarter of 2020.
Kearney Financial announced it will purchase MSB Financial, the holding company for Millington Bank, for approximately $94 million. The price will be paid in either 1.3 shares of KRNY common stock or $18.00 in cash.
Japanese regional banks are starting to look for new capital as it becomes increasingly challenging to grow in a low-interest-rate environment.
In a move similar to what we saw happen in the United States back in 2010. The regional banks tend to be located outside the major population centers and have been dealing with a demographic issue as the population ages and declines. They also face problems with the rising costs of technology and cybersecurity, like those driving U.S.-based consolidation.
Black Tuesday: Banks on Both Sides of the Atlantic Announce Major Job Cuts. On Tuesday, December 3, Unicredit, Italy’s largest lender, said it planned to cut 8,000 bank jobs as part of a strategic, four-year restructuring plan. The same day, the Bank of Montréal announced the deepest job cuts in the Canadian banking industry in years. It said it would cut 5% of its workforce, or about 2,300 jobs.
The FDIC Quarterly Banking Profile arrived last week.
For the first time in several years net income fell. Net Income is the nation’s banks totaled $57.4 billion during the three months ended September 30, a decline of $4.5 billion (7.3 percent) from the third quarter of 2018.
Earnings season is pretty much behind us now, and the Federal Reserve issued its latest minutes. While Wall Street is celebrating the fact that a historically high number of companies exceed the estimates, they are ignoring the fact that earnings were down quarter year over year.
BB&T and Suntrust received approval for their merger of equals by the Federal Reserve System and the Federal Deposit Insurance Corporation.
Simplifya executive John Vardaman says that the Federal status of cannabis laws make it one of the most transparent industries for banking.
Are community banks alternative investments? That question requires a deeper understanding of liquidity, structure, and broader market correlation. Before we start, it’s worth noting that the Chartered Alternative Investment Analyst (CAIA) Association has a specific definition for alternative investments.
During last week’s Fed-sponsored conference, new data emerged from the Community Banking in the 21st Century survey.
In the survey introduction, Bret Afdahl Chairman, Conference of State Bank Supervisors, wrote:
“For the first time in years, compliance costs are not the top financial concern for community banks. Instead, it is funding.”
And the risk they fear most?
Fed Governor Michelle Bowman spoke at the opening of the” Community Banking in the 21st Century” 2019 Community Banking Research and Policy Conference sponsored by the Federal Reserve System this week. She discussed takeover activity in the sector.
Community Banks Back Cannabis Financial Services Bill The Independent Community Bankers of America sent a letter to the leadership of the House and the Senate urging them to pass the SAFE banking bill. The bill would allow for cannabis companies to use banks and banking services. The letter noted that “The SAFE Banking Act would…
“Here’s the Latest on the New Community Bank Leverage Standards New community bank leverage standards will reshape the industry. The FDIC approved a different measure of leverage for community banks to avoid the complexity of Basel III regulations. Banks with under $10 billion in assets can now use the Community Bank Leverage ratio instead of…