Jon Winick, CEO of Clark Street Capital, was asked by American Banker to provide his views on Walmart offering checking accounts through its partnership with Green Dot Bank.
Fears exist that the GoBank account will be a direct competitor to banks, especially those with branches inside Wal-Mart stores, some experts said. In a traditional commercial real estate lease there are usually provisions that would bar a landlord from renting space to a tenant’s direct competitor, said Jon Winick, chief executive of Clark Street Capital.
“It’s very common in CRE for businesses to be sensitive to who their neighbors are,” Winick said. “Some banks may decide this is a bad idea since Wal-Mart is potentially backing a competing banking enterprise.”
Regional Banks Enter M & A Fray: SNL
Jon Winick, CEO of Clark Street Capital, was quoted in SNL regarding renewed interest of regional banks in acquiring community bank franchises, specifically BB & T’s acquisition of Bank of Kentucky.
“It looks like they [Bank of Kentucky] got a pretty good price,” Winick said, in what was a win for its investors. He added that BB&T has a proven M&A background and should have little trouble absorbing the target smoothly. “It’s very easy for them to pull it off.”
What’s more, Winick said, BB&T will clearly bring to Bank of Kentucky’s customers a broader array of products and services, providing further value to the seller.
Winick noted that others say it is too soon to call the beginning of a trend. He added that several regional banks this year have been publicly bearish on bank M&A, including SunTrust Banks Inc. and U.S.
Bancorp. But he said the BB&T announcement this week, coupled with rumblings about increasing M&A conversations among some regionals, “suggests attitudes are beginning to thaw.”
Jon Winick of Clark Street Capital was quoted in SNL on the M & A market in Chicago.
First Midwest Bancorp announced the acquisition of Great Lakes Financial Resources, a $582 million community bank in the south suburbs. We thought this acquisition was somewhat noteworthy, as it was the first open-bank acquisition by a non-Wintrust Bank of a bank less than $1 billion in assets.
Jon Winick, president of Clark Street Capital in Chicago, told SNL that First Midwest’s serious interest in M&A following the MB Financial-Taylor deal and Wintrust’s recent buying history “shows that there is competition for community bank franchises” in the Chicago area.
First Midwest said it is paying about 132% of tangible book value for Great Lakes. Winick called that “a modest premium” that appears to constitute a “fair deal” for both sides. The combination of seeing more buyers coming forth and Great Lakes fetching a reasonable price could motivate more sellers to step up to the deal table, he said.
“This shows sellers that there is activity going on,” Winick said.
Stay tuned – consolidation in Chicago is inevitable.
The $40MM Hotel & CRE Portfolio
The $40MM Hotel & CRE Portfolio
Clark Street Capital’s Bank Asset Network (“BAN”) proudly presents: “The $40MM Hotel & CRE Portfolio.” This exclusively-offered portfolio is offered for sale by one bank (“Seller”). Highlights include:
A total unpaid principal balance of $42,591,777, comprised of 21 loans and 13 relationships
Performing loans constitute 94% of the portfolio
Loans have a weighted average coupon of 5.61%, and nearly all mature within 5 years
All loans are whole loans secured primarily by first mortgages on real property
Geographically diverse portfolio
Collateral types include: Hotels (75%), C & I (12%), Assisted Living Facility (8%), and Retail (5%)
‘Bad Omen’ for Banks Holding Reworked Mortgages: American Banker
The American Banker asked Jon Winick, CEO of Clark Street Capital, to comment on a recent Moody’s report on Bank’s expected losses as they sell-off modified residential mortgages. Banks have been “putting out the spin” that they’re lending again and have recovered from the mortgage crisis, says Winick, but they are still sitting on large numbers of bad assets.
“If they’re not selling loans, it’s bad for the economy because it’s interfering with the natural recovery of the market,” he says.
Jon Winick on New SBA Head: NY Times
The New York Times asked Jon Winick, CEO of Clark Street Capital to comment on Maria Contreras-Sweet, the proposed head of the US Small Business Administration. “It’s been frustrating that there hasn’t been an S.B.A. administrator with banking experience for a very long time that I can recall,” Mr. Winick at Clark Street Capital said. “Getting somebody who has real-world banking experience and real-world S.B.A. experience is a big change for the agency.”
Clark Street Celebrates 5-Year Anniversary!
Late last year, we celebrated our five year anniversary. Starting a company in the absolutely lowest point of the financial crisis was not easy, but we have been fortunate and our business is stronger than ever. From our customers to folks that just enjoy this newsletter, all of you have made a difference and we are appreciative of your support!
Appearing in SNL, Jon Winick of Clark Street Capital, argued that Bank Regulators should allow new charters. Even though many banking markets are overbanked and will be consolidated, there are always markets that could benefit from new banks. “So I do think regulators should be more open to new charters,” Winick told SNL.
Clark Street CEO Interviewed on Dodd / Frank
Jon Winick, CEO of Clark Street Capital, was interviewed by Bob Coleman of the Coleman Report on the latest on Dodd/Frank, as well as its impact on community banks.