Jackie Stewart is the executive editor of American Banker Magazine. Previously, she covered breaking news, community banks and mergers and acquisitions for American Banker before being named as the managing editor of the Credit Union Journal. After graduating from Northwestern University in 2006, Jackie taught for two years in the Bronx, N.Y., through Teach for America.
Royal Bank of Canada and CIBC have plunked down $9 billion in the past year to buy U.S. banks, ending a brief lull from Canadian banks. Expect more activity from those banks and others.
The Canadian company took its time before making a bank acquisition in the U.S. The wait allowed management to address internal performance, assess the market and find the right bank to buy.
The Canadian company is determined to rely on low-cost deposits, lending prowess and cross-selling to justify the price it will pay for PrivateBancorp. Each of those strategies could backfire, highlighting why most acquirers emphasize cost-cutting when pitching a deal.
Suffolk Bancorp said increased oversight of commercial real estate contributed to and may have accelerated its decision to sell to People's United. Other banks could make a similar choice.
First Bancorp in Southern Pines, N.C., has agreed to buy Carolina Bank Holdings for $97.3 million, or $19.26, in cash and stock.
More institutions are willing to pursue small acquisitions, or rely on organic growth, to cross over a regulatory threshold that includes interchange fee caps and stress testing. A big reason is that bankers are becoming more comfortable with the financial toll of such regulation.
Bankers are donating money and promoting blood drives in the wake of the deadliest mass shooting in U.S. history. However, a long-term strategy to stay involved with the issues that the tragedy has brought to light is also considered important.
The financial crisis, and its aftermath, created a new layer of regulation to consider. A growing need to fund technology projects and an uncertain rate environment have only made it harder to forecast revenue and expenses.
Bankers have long complained that customers are fee averse. Aspiration, a nonbank that is working with a Boston bank, has a model that is proving that some clients will voluntarily pay fees.
A number of banks have faced pressure from shareholders to ditch plurality voting, where directors can keep their seats even if they fail to receive majority support from investors.