Tuesday Topic: Merger Mania?

Barb, I'm always a little skeptical of mergers being a solution to making an FI better prepared for the future. But I know the pressure for growth in the short-term will certainly drive more M&A activity as will the temptation for higher compensation for the executives of the acquiring FI! I think the dynamics of the industry will result in more shareholder loss in value than previous M&A waves. Color me a skeptic!

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John Tyson
CFO/SVP
Altamaha Bank & Trust Company
Vidalia, GA
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Original Message:
Sent: 04-19-2021 14:23
From: Barb Rehm
Subject: Tuesday Topic: Merger Mania?

The much-predicted M&A wave finally seems to be building, doesn't it? The pursuit of scale efficiencies, desire to enhance product portfolios, and the need to bolster digital capabilities will drive deals in 2021, according to Deloitte. So far this year, there have been 38 deals including Bancorp South's $6 billion deal for Cadence Bancorp. followed by Eastern Bancshares' tie up with Century Bancorp. On Monday we got the $5 billion Webster-Sterling deal. Home BancShares in Arkansas announced it is returning to the acquisition game after nearly four years on the sidelines. "We're working on one (deal) as we speak, and we'll see that will resolve itself in the next two or three weeks," Home's CEO said last week. "And then we'll move to the next one and the next one."

Do you think this surge will be sustained?

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Barb Rehm
Senior Managing Director
IntraFi Network
Arlington VA
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