Bank M&A: After the Honeymoon

February 15, 2013 1:05 PM

What lies ahead for the top 10 bank marriages and engagements of 2012?

(Image: Thinkstock)

(Source: KBW)

Short-Term Pain

Buyer: M&T Bank (MTB)

Seller: Hudson City (HCBK)

Deal Value: $3.8B

Target's Assets: $44B

Announced/Completed: Aug. 27/ 2Q 2013 (est.)

M&T forecasts a "small negative impact" on net interest margins this year and $120 million in merger-related expenses, but 24% cost savings and "high single-digit" earnings accretion next year, CFO Rene Jones recently said.

Long-Term Ambition

Buyer: UnionBanCal

Seller: Pacific Capital Bancorp (PCBC)

Deal Value: $1.5B

Target's Assets: $6B

Announced/Completed: March 9/Dec. 1

UnionBanCal spent heavily on its biggest deal in more than 15 years so it could expand along the coveted central coast of California, and it is widely viewed to be eyeing more acquisitions.

Related Articles: UnionBanCal's Earnings Fell in 4Q on Higher Spending

Union Bank to Close 15 Calif. Branches after Pacific Capital Deal

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