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.
Regulators want to know how banks are planning for the future, particularly in the face of competitive threats such as marketplace lending and added scrutiny over the use of third-party vendors.
Changes to mortgage disclosures rules implemented in October continue to frustrate community bankers and is just another example of the struggle to stay independent.
Rebeca Romero Rainey, incoming chairman of the ICBA, would like to see the financial services industry add new banks and younger bankers in coming years.
Mergers of equals are hard to complete due to cultural issues, but a spike in consolidation paired with weary leaders and a lack of young talent could make such combinations more appealing.
Texas has had a fair share of M&A since the financial crisis, but deal volume has declined since oil prices began to plummet in late 2014. Uncertainty over sellers' exposure and depressed stock prices for aspiring buyers are largely to blame.
The company has linked compensation for its top 16 executives, along with several hundred other employees, to its ability to achieve certain cost savings. It has also been tracking its expense cutting on a monthly basis, executives said during a biennial investor day.
Hampton Roads Bankshares agreed to take Xenith Bankshares' name and move to the seller's Richmond, Va., headquarters as part of a recent deal. The move gives the surviving company heft in a growing market that is attractive to other potential acquirers.
There is a widening gap between the premiums paid for bigger institutions and those of smaller community banks. Economies of scale, scarcity value and earnings potential are more important than ever, and a return of larger acquirers has increased demand for bigger sellers.
A rough economy, regulation and evolving technology will keep forcing small banks to merge, said Richard Hunt, head of the Consumer Bankers Association. Hunt's position puts him at odds with bank advocates, including Camden Fine at the Independent Community Bankers of America, who believe small banks should ignore the drumbeat calling for more consolidation.
Bank of Missouri knew that using new technology was important in making its business processes more efficient. But its IT team also knew that it had to get buy-in from the employees actually completing the steps as well to see real results.