Jan 22, 2020
Increasing scarcity of both buyers and sellers will drive bank
mergers and acquisitions in 2020, a top bank deal lawyer says on
the latest episode of the ABA Banking Journal Podcast. In the
episode, Rob Klingler — an Atlanta-based partner at Bryan Cave
Leighton Paisner — outlines what
to expect in the year ahead, including:
- Scarcity of selling banks, driven by a strong M&A pace in
previous years and a paltry de novo pipeline. Banks that are less
than 20 years old represent less than 10% of remaining charters,
while banks that are over 100 years old — and thus less likely to
sell — account for nearly half of charters.
- Increasing scarcity of buyers, as many fast-growing acquisitive
banks have reached sizes where their interest in absorbing smaller
community banks declines.
- Growth in non-traditional transactions, such as quasi-de novo
organizers acquiring an existing charter.