A wave of M&A activity is expected to sweep the Northeast & Mid-Atlantic banking sector over the next few years, with big banks riding the crest and their smaller counterparts being swallowed by it, according to Richard D. Weiss, the director of financial services at Janney Montgomery Scott LLC.
“[Banks are] raising capital both in anticipation of higher regulatory standards and to take advantage of the forthcoming round of mergers and acquisitions,” Weiss said, adding, “I think that the next wave will be, like, massive.”
Heeding capital requirements won’t be easy for everyone, though, Weiss says. While big banks prepare to take offensive measures, some smaller banks will face the blunt end of Dodd-Frank regulatory reform and become prime acquisition targets.
“The challenges for small banks, especially those under a billion dollars in asset size or so, will be particularly daunting,” Weiss said. “As the compliance costs go up, the larger banks can spread the fixed costs over earnings assets, but a smaller bank will have trouble doing the same thing, so I think it’s going to lead to a lot of mergers and acquisitions.”
Report Overview: Northeast, Mid-Atlantic and Southeast Banks
January 03, 2017
Interview Highlights: Richard Bove of Rafferty Capital Markets on Northeast, Mid-Atlantic and Southeast Banks
January 03, 2017
Interview Highlights: Mike Rizvanovic of Veritas Investment Research Corporation on Northeast, Mid-Atlantic and Southeast Banks
January 04, 2017
Cutting Costs Key for Northeastern & Mid-Atlantic Banks
January 20, 2012
Northeastern, Mid-Atlantic Banks Offer Appealing Dividends
April 04, 2012
