[Article] How High Interest Rates Changed Bank M&A.
A recent article from BankDirector looking at fair value discount in the new rate environment as it relates to deal pricing strategies. The note offers perspectives on how two recent acquirers approached fair value discounts for potential benefits for the pro-forma banks going forward. Read Article >>
[Article] Talent flight: Overlooked risks during M&A. How to retain talent during acquisition and integration to preserve deal value.
A brief but good review of M&A talent management from KPMG. While many banking institutions understandably play up the integration of all employees into the new organization, this summary give some valuable perspectives on how we might think about aligning the right acquired talent to the new organization - without needing to make short-term promises at the expense of whether that talent/role combination makes sense over the long-term. Read Article >>
[Article] 2024 Banking and Capital Markets Outlook.
A big picture view from Deloitte on global banking issues, highlighting the divergence of perspectives on what the rate environment in the US will look like in 2024 and beyond and the impacts. Clearly a challenge to model out when banker assumptions for rate cuts will hit and the potential lag effect for repricing that could be a benefit in the right scenario. Read Article >>
[Article] Capturing the Full Value of Generative AI in Banking.
An interesting follow-up from McKinsey to our last quarter highlight of AI perspectives in Banking. This highlights three elements that all banks need – a plan, a solid understanding of your own data and talent. Without these, the road will be rough for those hoping to compete for profitable business beyond the stragglers. Read Article >>
[Article] Regional Banks Need to Prepare Now for More Earnings Pressure in 2024.
Summary readout from a Fitch Ratings webinar – and a mention of the late November M&A outlook from KBW - on the outlook for large/mid-tier US banks which foreshadows the potential impacts from shifting deposit mixes, C&I lending challenges and conflicting nature of need vs. likelihood of M&A to enhance competition. Read Article >>
[Research] US Bank Mergers of Equals Making a Comeback with Largest Such Deal Since 2021.
S&P Global Market Intelligence looks at MOE’s based on the rise in activity in 2023 over prior periods. We feel it does raise some interesting questions going forward for smaller bankers trying to stay afloat and compete when looking at partners. Read Study >>
[Survey] Bank Director’s 2024 Bank M&A Survey.
An annual favorite at BMM due to the candor that Bank Director uncovers each year. 80% of the respondents indicating either being active or open to M&A, speaks to the pent-up need as well as a dose of reality that is taking place in the industry. If you can’t make their conference in January (among the best in the industry), at least give this a read. Read Survey >>
[Survey] 2023 CSBS Annual Survey of Community Banks.
A survey of state bank regulators focused on institutions under $10B in assets – mostly on the smaller side. While coming with some statistical and geographic challenges, it is an interesting perspective to scan for how this cohort views those they cover. Speaks to what we feel is going to make sustainability for many institutions significantly difficult in the time ahead. Read Survey >>
