After the meltdown, the public and policymakers devoted extensive attention to the risks posed by too-big-too-fail banks and the plight of community banks. But a lot less has been said about the hit sustained by midsize banks and its implications.
From 2005 to 2010, assets at such banks, loosely defined as having $10 billion to $100 billion of assets, shrank nearly 30%, to $2.6 trillion. Such companies were once hardy lenders who fueled regional economies.
In this series, American Banker examines the disappearance of this once important class of banks, the prospects for a new crop of smaller banks to expand by merger and acquisition and take their place, the challenges of adding economies of scale while not losing local touch and the vow by some existing midtier banks to remain independent. Editor at Large Barbara A. Rehm also weighs in on whether the midtier group, new or old, can survive the unique regulatory burden placed on them by the Dodd-Frank Act.
Editor at Large
Not Too Big to Fail, But Big Enough for 'Enhanced' Fed Oversight
American Banker | May 19In specifying that all banks with assets of more than $50 billion be subject to "enhanced supervision," the Dodd-Frank Act leaves big-but-not-that-big banks in limbo.
Root Strength: Can Local Ties Help Midsize Banks Stay Independent?
American Banker | May 18With the market trying to peg who's a buyer and who's a seller, some analysts consider a handful of midsize banks as being in a category all their own: Highly unlikely to ever be sold.
Growing Banks Seek to Balance Bigger Scale With Old Community Feel
American Banker | May 17Large community banks that aspire to the next rung face a critical challenge: expanding in size and scope while maintaining their small-bank identity.
M&A Could Replenish Fading Class of Midsize Banks
American Banker | May 16The midtier bank seemed destined for the endangered species list after the meltdown, but a fresh crop of small-bank survivors are eager to fill the void.
Data Analysis
The Nation's Most, and Least, Competitive Banking Markets
American Banker | May 10As merger and acquisition activity revives, the intensity of competition in particular markets can provide important context for the merits of a deal.
