Smaller banks targeted for their deposits

Liquidity is becoming an issue at many community and regional banks, says Sterne Agee's Matthew Kelley, noting growing loan-to-deposit ratios. Bank runs are not the worry, but keeping loan pipelines well funded is, and a number of smaller players could be acquisition targets for lenders looking to boost deposits.

Kelley's list of 12 possibilities in the Northeast: Westfield Financial (WFD +0.1%), Century Bancorp (CNBKA -0.9%), Hudson Valley Holding (HVB +0.1%), Republic First (FRBK +1%), Metro Bancorp (METR +0.4%), Suffolk Bancorp (SUBK +3.3%), Citizens and Northern (CZNC +0.3%), Sun Bancorp (SNBC), First Niagara (FNFG +1.7%), Orrstown Financial (ORRF +0.4%), Camden National (CAC +0.5%), Cambridge Bancorp (CATC +0.2%).

Under pressure to raise deposits? Susquehanna Bancshares (SUSQ -0.6%) - whose loan-to-deposit ratio rose to 105.5% in Q4 from 102.5% a year earlier. Investors Bancorp (ISBC) with a ratio of 120%, New York Community Bancorp (NYCB), Astoria Financial (AF +0.8%), and People's United (PBCT +0.2%).

Comments (2)
  • InvestingForFuture
    , contributor
    Comments (116) | Send Message
    Don't know how FNFG can be considered a "smaller bank" takeover target with market cap of $3 billion. That $3 billion dollar market cap is after falling over 20% from it Oct 2013 high.
    7 Feb 2014, 05:31 PM Reply Like
  • linkdonald
    , contributor
    Comments (2027) | Send Message
    Smaller is a relative term with banks though the absolute number is certainly acknowledged. If anyone wants to make a run at a bargain, FNFG should definitely be considered. Selling below book and just emerging from a disruptive search for a new CEO, the basic strengths appear undisturbed and its branching network could provide a real opportunity for another bank bordering on its territory and looking to expand.
    9 Feb 2014, 08:23 PM Reply Like
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