A hat tip to the family-owned bank

While it is difficult to nail down exact numbers, it is safe to say that the number of banks owned by one or two families is declining. The family-owned bank is a venerable niche of the community bank arena. Family-owned institutions experience pressures other banks avoid. As the family group grows with generations, fewer of the shareholders retain direct bank involvement. More of the shareholders in these families see their shares as solely an investment. As they weigh the value of their shares against other investment options, they may press the other members of the family to sell.  [Continue]

What about post-merger tech?

Equally important to the merger of the bank’s assets and people is the merger of technology. And this is an aspect that is often treated as an afterthought. Some banks come with teams and a clear vision for the merged technology. Some have an idea about where to begin but need guidance to ensure everything runs smoothly. And some contact their technology vendors about three weeks before the merger is scheduled to take place to say, “By the way, we’re merging.” (Hint: Don’t take this approach.) [Continue]

Smaller deals lagging in M&A arena as stock prices set pace

As the pandemic moves from phase to phase, the banking sector has seen dramatic swings in public stock valuations and M&A prices. While the volatility of the markets is closely tied to health trends, which remain difficult to predict, a study of the past 18 months provides insights into future community banking performance and value prospects, which can be invaluable for strategic planning in the boardroom and for setting shareholder expectations. [Continue]

Bankers cry foul over CU acquisitions

After a lull due to the Covid-19 pandemic, credit unions are pursuing banks and thrifts with renewed vigor, picking up where they left off in 2019, which set a record for credit union-bank deals. In buying community banks, credit unions are leveraging their financial heft to break into new markets, gain new members and become a force in commercial lending. For their part, many bank owners find it difficult to turn down a handsome offer from a credit union, despite the complexity of such sales and the stigma associated with them. [Continue]

Resilience is that invaluable intangible

Did you happen to catch Charles Woodson’s Pro Football Hall of Fame induction speech last month? The inductee class of 2021 included some big names such as Drew Pearson and Peyton Manning. But it was Woodson — the Heisman Trophy winning defensive back who began and ended his career with the Raiders but who also wore the green-and-gold for the Packers for seven years — who carried the ceremony with an impassioned speech focusing on family and overcoming adversity. [Continue]

Bankers may find project to identify racist deeds intriguing

U.S. Sen. Tina Smith (D-Minn.) is seeking support for a bill she wrote which would provide grant money to organizations that help identify property deeds containing racist covenants. Some deeds written in the early 20th century contained provisions prohibiting the sale of land to Black people and other minorities. More research needs to be done to determine the impact of decades-old racist covenants on today’s patterns of homeownership. Perhaps Sen. Smith’s legislation could result in additional understanding. [Continue]

Customers want self-serve options — including appointment scheduling

We all know the feeling of trying to schedule a meeting. The back-and-forth via emails to determine availability, the no-shows, the rescheduling. Busy bankers likely felt this pain, and then it was magnified when Covid-19 hit and lobbies closed. Suddenly everything happened via appointment, from account opening to loan inquiries. Walk-ins — temporarily — not welcome.  [Continue]

Day One: Set the Right Tone After Close

The team has worked hard to get the deal done. It looks like the close is imminent. Day One sets the tone for integration and your ability to realize the intended deal thesis. Have you properly prepared for this day and the days that follow? Being very clear on how this transaction will impact the organizations involved is extremely important. While you do not need to share in great detail, if you are clear up front, it can help alleviate many concerns and distractions, as well as allow individuals to identify opportunities to enhance the synergies. [Continue]