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.”