MOEs require a different mindset and attitude, particularly on the part of CEOs. See “What Makes MOEs Unique—and How to Avoid Their Pitfalls” in this issue. Here are some tips...
There’s a new $1.3 billion bank holding company in Georgia – and it’s the result of a merger of equals. Heritage Southeast Bancorporation came about as the result of a...
MOEs are not like typical acquisitions and cannot be approached in the same manner. They: • Comprise a very small fraction of transactions. • Have a high failure rate due to social/valuation/process...
M&A transactions initiated through an auction process have become de rigueur in the community banking marketplace. In the right situation, they have several advantages that include speed, limited due diligence...
Last December, Virginia Partners Bank, which has $410.1 million in assets, announced a strategic merger of equals (MOE) with Delmar Bancorp, a $737.9 million holding company that owns The Bank...
Virtually any financial institution with a high loan-to-deposit ratio or with funding challenges in today’s difficult and highly competitive environment for gathering and retaining deposits should at least explore M&A...
Community bank stock prices are down, and M&A transactions have dwindled, a reality that is troubling on many different levels. The drop in bank stock prices and the corresponding decline in...
Every community bank should assess its own situation and business model before deciding to opt in to the proposed new community bank leverage ratio (CBLR) framework, regulators advised banks in...
Rising interest rates are already causing pain in the community banking industry. The most visible sign is the increasing cost and diminishing supply of deposits. But there are additional problems...
Most community bankers know about quantitative easing (QE), the Federal Reserve’s unprecedented policy to reduce interest rates further out on the yield curve, helping stimulate an economic recovery from the...