p17io4skd8kuh1tbsi6jid618g43.jpg
Problem assets, rival bids, unyielding regulators - these are just a few things that spell disaster in bank mergers and acquisitions. The highlights and lowlights of canceled deals in recent years. (Image: Thinkstock)
p17io4skd913ft1dn5bma1asfdpe8.jpg

Collateral Damage

BUYER: Home Depot

SELLER: EnerBank USA

TERMINATED: January 2008

Home Depot's bid for a Utah industrial loan company fell victim to a political fight over the divide between banking and commerce triggered by Wal-Mart.

Related Article: ILC Debate's New Twist: Home Depot Drops Its Bid

(Image: Bloomberg News)
p17io4skd9ij156s50jn8r157t6.jpg

Searching for Stability

BUYER: CapitalSource

SELLER: TierOne

TERMINATED: March 2008

CapitalSource, a specialty finance company then led by John Delaney, sought more stable funding than the troubled (and later failed) TierOne could provide. CapitalSource bought an ILC that it plans to convert to a bank this year.

Related Articles: CapitalSource Soldiers On with Slow Transformation

Congressman-Elect Delaney Leaves CapitalSource, Named to Banking Panel
p17io4skd918ut1amr1ngkd4f1hhc.jpg

Investors' Ire

BUYER: Integra Bank

SELLER: Peoples Community Bancorp

TERMINATED: February 2008

Integra CEO Mike Vea saw a chance to expand in Cincinnati on the cheap, but its investors saw a troubled target. Both banks eventually failed.

Related Article: Integra Bank Tops Week's Failures as '11 Tally Hits 61
p17io4skd9qf0pe916tnkke1ukrb.jpg

Thwarted by Writedowns

BUYER: FBOP

SELLER: PFF Bancorp

TERMINATED: Nov. 2008

FBOP's acquisition of PFF was stunted by FBOP's $1 billion in losses on Fannie Mae and Freddie Mac securities. PFF failed in 2008, and FBOP's banks failed in 2009.

Related Article: Illinois' FBOP Has 9 Banks, But How Many Lives ...

(Image: Thinkstock)
p17io4skd91qpv11tp6be14rm1mrtd.jpg

One for the History Books

BUYER: Citigroup

SELLER: Wachovia Corp.

TERMINATED: October 2008

Citi agreed to buy the troubled lender with a safety net from the Federal Deposit Insurance Corp., but days later Wells Fargo said it could do the deal on its own. Wells, of course, won.

Related Article: Wells to Pay $100M Settlement to Citi

(Image: Bloomberg News)
p17io4skd91gon1tfofjhj1kolna.jpg

Bigger is Better

BUYER: WL Ross

SELLER: First Bank and Trust Co. of Indiantown

TERMINATED: August 2009

Billionaire Wilbur Ross eyed the $88 million-asset Florida bank before joining up with other private-equity firms to buy the failed $12.8 billion-asset BankUnited in May 2009.

Related Article: Ross Buying Stake in Small Florida Bank

(Image: Bloomberg News)
p17io4skd91iq41rfkg3dl2hj7l9.jpg

Aid from Abroad

BUYER: Woori Finance Holdings

SELLER: Hanmi Financial

TERMINATED: June 2011

Woori, a South Korean banking giant, wanted to help the then-struggling Hanmi, but regulators never approved it. A now-healthy Hanmi is for sale. Woori is a possible buyer.

Related Article: Hanmi Could Spark Bidding War, Reshape Korean-American Banking

(Image: Thinkstock)
p17io4skd91fdgje51lev8mf1857.jpg

Something in Common

BUYER: Metro Bancorp

SELLER: Republic First Bancorp

TERMINATED: March 2010

Former Commerce Bank CEO Vernon Hill was a shareholder in both, and observers say bad blood between Hill and regulators doomed the deal.

Related Article: Metro: Back to De Novo Roots in Pennsylvania

(Image: Bloomberg News)
p17io4skd915121safh721gfa146i5.jpg

More Cash is Better

BUYER: Umpqua Holdings

SELLER: American Perspective Bank

TERMINATED: April 2012

Umpqua agreed to pay $45 million in cash. Three weeks later, PacWest agreed to pay $58 million. American Perspective did the math.

Related Article: PacWest Swoops In, Steals American Perspective from Umpqua
p17io4skd9ec81qqt17fi17tm1ri64.jpg

A Few Still Fall Through the Cracks

Cancellations slowed last year to 5% of all deals announced. Premier Service Bank, NCAL Bancorp and U.S. Century Bank were among the sellers in terminated deals.

Related Article: M&A Cancellations Slow, But Still a Risk for Banks
M&A
MORE FROM AMERICAN BANKER