Nearly 20 acquisition deals have recently been negotiated by U.S. financial institutions. But despite the increase in activity this year, one analyst predicts that the pace of bank mergers will pick up substantially in the second half of next year. Some of the recent deals involve investment firms.
In a report this month from The Wall Street Transcript, Raymond James & Associates Equity Research executive Anthony Polini expects to see an increase in bank merger activity in the second half of 2010, while 2011 could be very good for such activity.
“A lot of these banks are just beat-up,” Polini stated. “Even in the Northeast, banks had a really rough time with the economic and regulatory environment. Their boards are getting elderly. These are boards of directors that have been to the dance before, so to speak, and may have decided not to hook up in the past at much higher price levels.”
Bank of America Corp. announced on Oct. 21 an agreement to sell First Republic Bank to a group of investors including Colony Capital LLC and General Atlantic LLC. The investment group is led by First Republic’s management. The deal to sell the $19 billion bank, which BoA inherited with its Jan. 1, 2008, acquisition of Merrill Lynch & Co., is expected to close in the second-quarter 2010.
U.S. Bank N.A., will purchase around $800 million in deposits from BB&T Corp.’s Nevada banking operations, an Oct. 13 press release indicated. In addition, U.S. Bank is also acquiring branches. BB&T ended up with the assets as a result of its August acquisition of failed Colonial Bank.
U.S. Bank expects to close on the acquisition early next year.
EverBank Financial Corp. announced last week that it has reached an agreement to acquire Tygris Commercial Finance Group Inc. in a $470 million stock-for-stock deal. The acquisition is expected to close by December and is subject to regulatory approvals and other customary conditions.
The assets of Corus Bank, N.A., which was closed last month by the Office of the Comptroller of the Currency, were placed in a limited liability company by the Federal Deposit Insurance Corporation. Out of eight bidders, a group of investors managed by Starwood Capital Group and including TPG Capital, Perry Capital and WLR LeFrak agreed to acquire a 40 percent equity stake in the company.
The assets include around $4.5 billion in predominantly performing and non-performing construction loans and real estate owned assets, the FDIC said.
An Oct. 17 report from the Chicago Tribune suggested that Cole Taylor Bank and Midwest Bank are discussing a possible merger.
The Federal Reserve Board reported that it has received applications for the following merger transactions.
| Acquirer | Acquisition Target | Regulator | Overview |
| Baker, Roger and Mary Angela, individually as husband and wife, and as a group acting in concert with Bruce and Janice Anderson; The Elizabeth K. Dummermuth Revocable Trust, Elizabeth K. Dummermuth, Trustee; Kay S. Hill; Kent M. Hill; Brian C. and Molly E. Scott; Thomas C. and Clare L. Slattery; Monica W. Vernon | City State Bancorporation Inc., M.S.B. Corp., City State Bank | Federal Reserve Bank of Chicago | Acquire control. |
| BancFirst Corp. | First Jones Bancorporation Inc., First State Bank | Federal Reserve Bank of Kansas City | Acquire 100 % of voting shares. |
| Ellison, Thomas A. and Maureen Sue | Foundation Bancorp Inc., Foundation Bank | Federal Reserve Bank of San Francisco | Acquire additional voting shares. |
| Geiger, Earl E., acting in concert with the Geiger Family Group | Heritage Bancshares Group Inc., Heritage Bank, NA | Federal Reserve Bank of Minneapolis | Acquire voting shares. |
| Jossi, Philip Eugene and Marian Joanne Hardin; James Andrew Bodyfield; Keith Weldon Carlson | Riverdale Bancshares Inc., State Bank of Riverdale | Federal Reserve Bank of Kansas City | Acquire voting shares. |
| Latterall, Darin J. | Kelliher Bancshares Inc., Citizens State Bank of Kelliher | Federal Reserve Bank of Minneapolis | Acquire 25% or more of voting shares. |
| Rasmussen, Belva H., 2009 Grantor Retained Annuity Trust; Eva B. Rasmussen; Pamela M. Harris; Teresa Rasmussen Trangsrud, trustees, to join a group acting in concert with Belva H. Rasmussen, individually, and with Belva H. Rasmussen, Teresa Rasmussen Trangsrud and Lyle Delwyche, trustees of the Walter C. Rasmussen Marital Trust Under Agreement dated Dec. 26, 1985, and the Walter C. Rasmussen Family Trust Under Agreement dated Dec, 26, 1985 | Northeast Securities Corp., Northeast Bank | Federal Reserve Bank of Minneapolis | Acquire voting shares. |
| Scherber, Craig E. | American Eagle Financial Corp., Riverview Community Bank | Federal Reserve Bank of Minneapolis | Acquire 10% or more of shares. |
| Stockmens Financial Corp. | Valentine Bancorporation, First National Bank of Valentinecisco | Federal Reserve Bank of Kansas City | Acquire 100% of voting shares. |
| Vivar, Alma Medina, as part of a group acting in concert including Rommel and Ruell Medina | MNB Holdings Corp., Mission National Bank | Federal Reserve Bank of San Francisco | Acquire voting shares. |
Last month, the Office of the Comptroller of the Currency notified MB Financial Bank, N.A., that it approved the Rosemont, Ill., bank’s application to purchase assets and assume liabilities of failed InBank in Oak Forest, Ill, and Chicago’s failed Corus Bank, N.A.
Also last month, the OCC approved an application by Hamilton, Ohio, First Financial Bank, N.A., to acquire assets and liabilities of failed Irwin Union Bank and Trust and Irwin Union Bank, FSB — both in Columbus, Ind.
The OCC also said it received an application for Louisiana’s Parish National Bank to merge with, into and under the title and charter of Whitney National Bank in New Orleans, La.
