These banks could end up on the block
June 8, 2017 1:46 PM
Marek Uliasz/Marek - stock.adobe.com
Here are 10 banks the investment banking firm KBW says are ripe M&A targets because they are in hot markets, face various growth challenges that make them vulnerable or have private-equity owners looking to cash out.
Associated Banc-Corp (Green Bay, Wis.)
It might be hard to believe that a bank the size of the $29 billion-asset Associated, led by CEO Philip Flynn, would be on a potential list of sellers. Yet revenue headwinds and rising credit costs are said to be hampering return on assets, and the company could be attractive to an in-market buyer keen on cutting costs.
beeboys - stock.adobe.com
Banc of California (Irvine)
The $11 billion-asset company has endured a rocky period that included the resignation of CEO Steven Sugarman, pressure from activist shareholders and claims of dubious insider dealings. Banc of California, which operates in attractive markets in Southern California, recently put several activist investors on its board, prompting KBW to characterize it as a potential seller.
boscorelli - stock.adobe.com
BankMutual (Milwaukee)
BankMutual is the third-largest bank based in Wisconsin, with branches in most of the state’s best markets. But the $2.7 billion-asset company’s profits are said to have lagged Midwest peers as it contends with slower loan growth and higher expenses.
hikdaigaku86 - stock.adobe.com
Boston Private Financial Holdings
Anyone keen on entering the Beantown area would have to consider a run at the $8.2 billion-asset Boston Private. Its big asset management business is a plus, and the company is nearing the $10 billion-asset threshold where it would be subject to mandatory stress testing, caps on interchange fees and other regulatory strictures.
GKSD - stock.adobe.com
FCB Financial Holdings (Weston, Fla.)
Another bank approaching $10 billion of assets is FCB Financial. It has won praise for organic growth and acquisitions that place it in many fast-growing Florida markets. Those accomplishments could lure a buyer.
Steve Lovegrove - stock.adobe.com
Guaranty Bancorp (Denver)
The $3.4 billion-asset Guaranty is one of the few available options in a coveted market. Private-equity firms Patriot Financial Group and Castle Creek Capital Partners each own more than 5% of Guaranty’s stock and could eventually look for an exit strategy at some point.
fimg - stock.adobe.com
Investors Bancorp (Short Hills, N.J.)
The $24 billion-asset company is three years removed from its second-step conversion, making it eligible to sell. A buyer could deliver value to Investors’ shareholders by closing branches, making more commercial loans and reducing redundant compliance costs.
Alexander Ozerov - stock.adobe.com
Pacific Mercantile Bancorp (Costa Mesa, Calif.)
Funds affiliated with Carpenter & Co. own about a third of Pacific Mercantile’s shares, and, like Banc of California, the company has an attractive footprint in Southern California.
Sun Bancorp (Mt. Laurel, N.J.)
The $2.3 billion Sun returned to steady profitability last year, part of an amazing turnaround under CEO Thomas O’Brien. Still, the company could find interest from buyers that have made the Philadelphia and New York markets a priority. And remember: W.L. Ross & Co. owns about a fifth of Sun’s stock.
Sean Pavone/SeanPavonePhoto - stock.adobe.com
Atlantic Capital Bancshares (Atlanta)
Atlantic Capital has more than a dozen branches in Georgia and Tennessee and a loan-production office in Charlotte, N.C. While total loans at the $2.8 billion-asset company fell by 4% in the first quarter from Dec. 31, it has ramped up in specialty areas such as Small Business Administration lending.
Her Hakki Hasan EROGLU'na aittir/HasanEROGLU - stock.adobe.com
No guaranty, but …
There’s no way to know how many of the banks on KBW’s 2017 list will sell themselves, or when, but the firm has a solid track record making predictions. Recent sellers Park Sterling , WashingtonFirst Bankshares and Astoria Financial have appeared on the firm’s lists.
