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.
Bankers need to let investors know in advance what types of deals they are willing to pursue, along with the financial parameters. Doing so is a critical step in managing shareholder expectations at a time when consolidation is heating up.
The Oregon company is disinclined to pursue acquisitions or buy back stock anytime soon, though it still would consider opening offices in new markets if the numbers work out.
Umpqua Holdings in Portland, Ore., posted stronger quarterly earnings because of an increase in mortgage banking fees and lower costs.
The company no longer feels the need to sell loans since it has a deal in hand to confidently cross a key regulatory threshold. Still, management said it likes the revenue opportunities from occasionally selling off originations.
New York Community Bancorp in Westbury, N.Y., posted a fourth-quarter loss after incurring a large charge from prepaying $10.4 billion in wholesale borrowings.
More than half of the deals announced so far this year have involved sellers from the Midwest. Expect activity in the region to rise as more banks mimic Huntington Bancshares and Chemical Financial by becoming acquirers.
The $13.8 billion-asset company said Monday after the market closed that it earned $21.2 million, down roughly 26% from a year earlier.
Ag lenders enjoyed solid credit metrics and an increase in farms loans in 2015. Those results could come under pressure this year, requiring bankers to become more vigilant in talking to their agricultural clients.
At least five regional banks on Thursday discarded concerns about the global economy, stocks, interest rates and credit quality, forecasting loan growth for the rest of this year.
KeyCorp believes it can surpass cost-cutting projections tied to its purchase of First Niagara Financial, while BB&T believes market duress could present it with more acquisition opportunities.