Ten Banks Creeping Up on $10 Billion
March 23, 2016 11:00 AM
A number of banks are on pace this year to surpass $10 billion in assets, which would subject them to heightened regulatory requirements such as stress tests and interchange fee caps . Several institutions have already announced big deals to cross that threshold. Here are 10 banks that could do the same.
Capital Bank Financial
Capital, run by CEO Eugene Taylor, will have about $9.84 billion in assets once it completes its acquisition of CommunityOne Bancorp in Charlotte, N.C. The company, backed by private equity investors, has said it will shed lower-yielding loans and assets to stay below $10 billion until the right deal comes along.
Banner Corp.
The Walla Walla, Wash., company made sure to remain comfortably below the $10 billion mark during the fourth quarter, ending 2015 with $9.8 billion in assets. This will give the company, run by CEO Mark Grescovich, another year to figure out how to catapult over the threshold.
Pinnacle Financial
Pinnacle's pending purchase of Avenue Financial will get the Nashville, Tenn., company, led by CEO Terry Turner, to $9.7 billion in assets. The company has said that by 2018, it could lose nearly $8 million in annual revenue and have more than $2 million in added compliance costs as a result of hitting $10 billion in assets.
United Community Banks
CEO Jimmy Tallent oversaw a remarkable comeback at United in Blairsville, Ga., that included a return to bank acquisitions . Tallent and his team have said they are looking for a big deal to offset the hit the $9.6 billion-asset United would take from crossing the next regulatory threshold.
Eastern Bank
The nation's biggest mutual bank – Eastern has $9.6 billion in assets – has grown significantly since 2007, largely through acquisitions. The institution, led by Richard Holbrook, has recently been focused on technology since creating Eastern Labs in 2013.
Home BancShares
Johnny Allison, chairman of Home BancShares in Little Rock, Ark., loves hammering out deals , so it would be no surprise to see the $9.29 billion-asset company cross $10 billion with a big acquisition. Then again, it has been only nine months since Home announced its last bank acquisition .
Capitol Federal Financial
The Topeka, Kan., banking company keeps a relatively low profile. Still, it disclosed in its fourth-quarter earnings release that total assets decreased 7% during the quarter, to $9.13 billion, due to a decline in cash and a reduction in the size of its securities portfolio.
Glacier Bancorp
The $9.09 billion-asset Glacier is another bank that has grown significantly from acquisitions in recent years. It is unclear whether retiring CEO Mick Blodnick , or a possible successor, will oversee the Kalispell, Mont., company's efforts to cross $10 billion in assets.
Northwest Bancshares
The $8.95 billion-asset Northwest has shown more interest in adding sources of fee revenue than in bank takeovers, buying five insurance agencies since 2010, though it did acquire LNB Bancorp in August. The Warren, Pa., company, which is interested in expanding in northeastern Ohio, also plans to cut costs by closing 24 branches by the middle of this year.
Columbia Banking System
Columbia, led by CEO Melanie Dressel, has shown an interest in acquisitions in the past, though the $8.95 billion-asset company hasn't announced a deal since agreeing to buy Intermountain Community Bancorp in 2014. The Tacoma, Wash., company still has plenty of time to decide its next move.
