Bank mergers and acquisitions: Many deals to come, but most will be small - Boenning & Scattergood
Boenning & Scattergood notes investment bankers and lawyers appear excited about a busier 2014 as more banks consider the potential sale of their institution. Because banks are sold and not bought, the pace of bank consolidation is largely determined by potential sellers' commitment to accept acquisition prices relative to trading values. They opine that the number of deals will increase from 2013's moderate pace but transactions will be smaller in size given fewer banks with the capacity or desire to buy larger institutions. Banks that appear to be near term acquirers: BMTC, WSBC, NYCB, PBCT... Cos with strong franchise values in our universe would readily attract buyers: AF, FCF.