A wave of fresh mergers and acquisitions (M&A) involving US banks has seen multiple deals announced over the past two weeks.
Many of the deals involve community banks. In a report published in late October , investment manager FJ Capital predicted a significant increase in M&A activity, with the total number of banks in US set to fall by up to 50% in the next 10-15 years.
Last week, shareholders in San Diego, California-based Seacoast Commerce Bank agreed to a merger with Enterprise Financial Services Corporation, owner of Missouri-based Enterprise Bank & Trust .
The proposed merger would create a $9.7 billion banking group with locations in 17 states.
Oregon-based People’s Bank of Commerce has signed an agreement with Willamette Community Bank which will see Willamette merge into People’s Bank.
The combined company will have $710 million in assets and nine branches across Oregon.
Joan Reukauf, president and CEO of Willamette Community Bank, said the combination would “be better positioned to meet the needs of our customers and communities and provide greater opportunities for our employees”.
Elsewhere, United Federal Credit Union , based in St Joseph, Michigan, has agreed to buy Edgewater Bank , also based in St Joseph.
The deal is expected to close in the second quarter of next year, subject to regulatory approval. The acquisition will increase United’s total number of branches to 41 and total assets to approximately $3.5 billion.
Edgewater Bank operates five bank branches in Southwest Michigan and had approximately $249.1 million in assets as of 30 September 2020.
New York-based Bridge Bancorp and Dime Community Bancshares have received regulatory approval for their planned merger.Bridge Bancorp, which owns BNB Bank , plans to merge Dime into BNB when the deal completes. The deal is still subject to shareholder approval.In Florida, $169 million community bank Anchor Bank has agreed a merger with the Home Federal Bank of Hollywood , also based in Florida.Home Federal Bank of Hollywood has $58 million in assets and one location. Following the merger, which is subject to regulatory and shareholder approvals, it will be rebranded as Anchor Bank.Back in New York, Rhinebeck Bank has acquired two leased branch offices in Orange County and their related deposits from ConnectOne Bank , based in New Jersey.The deal, which should add more than $50 million in deposits for Rhinebeck Bank, is expected to close late in the fourth quarter of 2020 or early in the first quarter of 2021, subject to regulatory […]
