Mar. 4, 2014, 10:47 AM
- The fast pace of smaller bank roll-ups looks set to take a pause as acquirers shy away from higher prices and instead focus on integrating recent purchases. Deal prices this year have climbed to an average of 136.8% of TBV vs. 128.7% in 2013 and 120.3% in 2012, according to SNL Financial.
- Of course, higher stock prices make it easier to pay, with SNL's Bank & Thrift Index now trading near 170% of TBV from 145% about a year earlier.
- Speaking at a recent conference, BankUnited (BKU +1.9%)CEO John Kanas says a strong currency is of little use if the target bank can't grow its business at the same multiple as his bank. Further, any buyer should be prepared to spend a year distracted with regulators.
- Still on the hunt, Home BancShares (HOMB +3.3%) CEO Randy Sims takes note of frothy seller expectations, noting a number of deals where the seller has baked in 50% growth into its asking price.
- Hancock Holdings (HBHC +3.1%) chief Carl Chaney agrees prices are rising, but so too is the quality of the books he's looking at.
- Trustmark (TRMK +3.7%) CEO Gerard Host says growth is necessary now that the bank's passed $10B in assets and faces a whole host of new regulations and costs. "We're going to have to pay to do the deals we want to do ... It's not just about money."
- Old National Bancorp (ONB +2.5%) CEO Bob Jones says he spends nearly 20% of his time talking to CEOs and boards of potential targets and these things take time. The recently closed purchase of Tower Financial, he says, was 10 years in the making.
- Also presenting: BXS, FFCH, UBSH, PB
Dec. 18, 2012, 2:53 PMPNC Financial, TD Bank, BB&T (BBT) and BankUnited (BKU) are among the potential bidders as Spain's troubled Bankia looks to raise cash by putting its Florida unit - City National Bank of Florida - up for sale. With 26 branches, $4.3B in assets, and a loan book doing quite well for Florida, the business could fetch in the area of $500M. | Dec. 18, 2012, 2:53 PM
Aug. 17, 2012, 6:35 AM
BankUnited (BKU) is considering offers of around $25 a share from Toronto-Dominion Bank (TD) and BB&T (BBT), The NY Post reports, although the Florida-based firm is not in formal negotiations. The bids are below BankUnited's close of $25.70 yesterday and its asking price of $27-$29.| Aug. 17, 2012, 6:35 AM
Jan. 18, 2012, 6:04 PM
BankUnited (BKU) decides not to proceed with a possible sale of the company, and will “continue to pursue its original plan to build the premier bank throughout Florida as an independent institution." BKU -10.7% AH.| Jan. 18, 2012, 6:04 PM | 1 Comment
Jan. 18, 2012, 6:20 AM
Toronto-Dominion Bank (TD) and BB&T (BBT) reportedly submitted preliminary bids late yesterday to buy BankUnited (BKU), which was put up for sale last week and is expected to fetch over $2B. The suitors want to expand in Florida despite its real-estate turmoil and other problems.| Jan. 18, 2012, 6:20 AM
Jan. 17, 2012, 4:56 PM
Either BankUnited's (BKU) decision to put itself up for sale means its PE owners (BX, CARL, Wilbur Ross) were just in it for a quick flip, or, more troubling, a crummy economy, overregulation, and sellers holding out for delusional prices meant the dream of rolling up smaller banks into a $40B giant was just that. If these guys are giving up, "others may soon follow," writes Rob Cox.| Jan. 17, 2012, 4:56 PM | 1 Comment
Jan. 13, 2012, 2:01 PMMore on BankUnited (BKU): The company - with market cap around $2.25B - is said to be working with Goldman Sachs as it looks into a sale just one year after its PE owners took the bank public. Blackstone (BX) and Carlyle Group (CARL) are among the majority owners. Shares have come off their halt, now +5.6%. | Jan. 13, 2012, 2:01 PM | 2 Comments
Jan. 13, 2012, 1:54 PM
Jun. 2, 2011, 7:39 AM