Wed, Jul. 22, 3:01 PM
- The OCC yesterday gave the green light to CIT Group's $3.4B purchase of OneWest Financial, and earlier this month regulators approved BB&T's $2.5B acquisition of Susquehanna Bancshares.
- Possibly lifted now is concern nearly any sizable deal would get nixed (or delayed to death) by D.C. a la M&T's attempt to purchase Hudson City Bancorp (originally announced three years ago).
- Both the CIT and BB&T deals, however, were approved within a year of their announcement, maybe making the M&T/Hudson experience the outlier rather than the norm.
- While it still appears unlikely much bigger deals could win approval, the path could be clear for smaller-to-medium sized lenders to do business. Drexel Hamilton's David Hilder believes the CIT approval is a "positive catalyst" for acquisitions of lenders with up to $25B in assets.
- Previously: CIT Group gains after winning regulatory green light for OneWest purchase (July 21)
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, IAT, SEF, IYG, FXO, FNCL, KBWB, FINU, QABA, KRU, KBWR, RWW, RYF, PSCF, FINZ, KRS
Nov. 12, 2014, 11:03 AM
- Regulatory headwinds in banking are "plateauing," says BB&T (BBT -2.5%) chief Kelly King, appearing on CNBC after his bank's agreement to purchase Susquehanna Bancorp (SUSQ +32.1%) for about $2.5B. The issues being talked about today are quickly become yesterday's news, he says.
- Speaking with analysts/investors on a conference call, King says the two lenders had been in talks for several months. One wonders if the deal's announcement one week after last week's Republican landslide is just a coincidence.
- BB&T, says King, is very interested in other opportunities, but naturally the price has to be right. Texas? Not interested, he says, as those lenders are asking 2x-3x book (SUSQ looks like it's being purchased for about 1.7x tangible book).
- A move further up the East coast? King says BB&T could eventually move into NYC and Boston, but for now will focus on the Mid-Atlantic and Southeast.
- Possibly helping to push Susquehanna into a sale (and no doubt on the minds of other smaller lenders) are the compliance costs associated with the Bank Secrecy Act and Anti-Money Laundering rules, and King notes SUSQ can now fold those costs into BB&T's.
- Previously: First Niagara on the move after BB&T/Susquehanna deal
- Regional and small-cap bank ETFs: KRE, KBE, IAT, KBWB, RKH, QABA, KRU, KBWR, PSCF, KRS
May 24, 2013, 7:11 AMRemember M&T Bank's (MTB) proposed purchase of Hudson City Bancorp (HCBK)? Regulators have put the merger on ice and it's sending a chill through the executive suites of other regional banks (KRE) who were considering doing deals, but now figure it's not worth the regulatory scrutiny. In the past, conditions such as we're in - slow economy, weak loan growth - have prompted waves of bank mergers (it's happening in community banks). "I am not buying another bank for as long as I can see," sees one unnamed top executive. | May 24, 2013, 7:11 AM | Comment!
Aug. 27, 2012, 9:49 AMMore on the M&T/Hudson City deal: There isn't much action in other regional bank shares as M&T (MTB +4.8%) - by the market's verdict - picks itself up a steal, buying Hudson City (HCBK +16.2%) at about 80% of tangible book value. Hudson City finds itself in this vulnerable position by recent costly balance sheet restructurings and continuing barely-visible net interest margins. | Aug. 27, 2012, 9:49 AM | 3 Comments
IAT vs. ETF Alternatives
The iShares Dow Jones U.S. Regional Banks Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Select Regional Banks Index.
See more details on sponsor's website
See more details on sponsor's website
Other News & PR