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Bank M&A Transactions Remain Brisk in First Quarter of 2018 According to New Research from Integrated Legacy Solutions.
Regulations drive M&A for small banks
But analysts at Compass Point Research & Trading LLC called the legislation "substantially bullish for banks and bank M&A." Bankers at recent conferences have said the law will trigger more large-bank M&A. There could be more small-bank deals too, as the legislation expands the small bank holding company policy statement to banks with $3 billion of assets, enabling them to take on more leverage, which provides more ammunition for acquisitions.
M&A to secure deposits is the name of the game
Ryan said sellers, particularly those with strong core deposit franchises, might find even more motivated buyers knocking on their doors as they seek to build their funding bases. They might present some banks a good time to sell and avoid living through another credit cycle, he said.
"I think you may see an uptick in activity because of people wanting to get out," Ryan said at the event.
Daniel Goldfarb, senior portfolio manager at AlphaOne Capital Partners, offered a similar viewpoint.
"On the seller side, maybe it's FOMO," Goldfarb said, referring to the “fear of missing out”—"I was here last cycle and the cycle before that."
Yet, there is reason to be optimistic about banking and securities M&A in 2018. Virtually all of the same drivers remain in place and are being bolstered by ...