Bank M&A's Bumpy Road
April 17, 2013 11:54 AM
Stubborn regulators. Delays and cancellations. Unpredictable shareholders. Those are just some of the stomach-churning obstacles that have made guts and a bit of luck key ingredients in successful bank dealmaking.
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(Image: Thinkstock)
Damage Control
M&T (MTB) has delayed the closing of its purchase of Hudson City Bancorp (HCBK) until as late as Jan. 31 to fix compliance problems flagged by the Federal Reserve. "We will do whatever we need to do to see it through ," M&T CFO Rene Jones said.
Regulatory Stop Sign
Customers Bancorp (CUUU), led by Chairman and CEO Jay Sidhu, canceled its $65 million agreement to buy Acacia Federal Savings Bank because regulators were said to be too worried about its rapid growth to sign off on the deal.
Love Triangle
The sale of Premier Service Bank (PSBK) was called off after the buyer, First California Financial Group (FCAL), agreed to sell itself to PacWest Bancorp (PACW). (Image: Thinkstock)
Credit Complications
Two soured loans at NCAL Bancorp (NCAL) and other problems led to the cancellation of its sale to a larger L.A. rival, Grandpoint Capital. (Image: Thinkstock)
Backup Plan
Troubled U.S. Century in Doral, Fla. was foiled in its attempted sale to C1 Bank by its difficulty exiting Tarp. U.S. Century settled for raising $140 million from local investors.
Try, Try Again
Umpqua Holdings (UMPQ) CEO Ray Davis ended up getting outbid for American Perspective Bank. Wasting no time, Davis bought Circle Bancorp in Northern California last fall.
Dead in the Desert
Sunrise Bank of Albuquerque, N.M. was blocked from selling itself to Westar Mortgage when the Federal Deposit Insurance Corp. refused to lift a cease-and-desist order.
Sigh of Relief
Starbuck Bancshares, the parent company of AmericanWest in Spokane, Wash., needed persistence to buy PremierWest Bancorp (PRWT) in Medford, Ore. The deal was finalized last week after Starbuck raised its offer and twice extended the voting deadline before winning shareholder support. (Image: Bloomberg News)
