Bank M&A Update: Modernizing bank merger competition, quality deposits, and Credit Unions

The industry is currently seeing a few trends in mergers and acquisitions. Recent M&A transactions suggest that quality deposits are in high demand and commanding a market premium. Acquirers are seeking banks with strong low-cost deposit franchises. Additionally, the FDIC is seeking to modernize the bank M&A process by updating competition analysis. The goal is to overhaul part of the process and make it easier for banks to get deals done. Critics say the proposal does not go far enough, and they would like additional competitors added such as online banks, fintechs, and other nonbank providers. Finally, bank acquisitions by credit unions are starting to heat up again with multiple recent transaction announcements. It appears this trend is ready to pick up speed again. This episode reviewed multiple articles from S&P Global Market Intelligence (subscription required) and Bank Director. The article from Bank Director is titled “Why more credit union and bank mergers are on the horizon.” A link to the Bank Director article is included below.

Link: Why More Credit Union and Bank Mergers Are on the Horizon | Bank Director