KS Bancorp disclosed in a legal filing that an takeover effort by First Citizens is spooking lenders and prompting prospects to delay and cancel plans to move deposits and lending relationships.
The company has agreed to pay $89 million for Premier Commercial Bancorp. The acquisition would significantly increase its branch presence and lending in the Portland area.
If community banks fail to keep up with higher rates offered by online banks, credit unions and (soon) big banks, their liquidity may deteriorate even faster.
With interest rates rising, corporate tax rates declining and regulatory relief likely on the way, now is actually a pretty good time to be a bank. That could be why sellers are holding out for more.
The Golden Contract Coalition, formed in mid-2016 to get community banks better deals with the “big three” core systems vendors, said banks need help with buying from fintech sellers as well.
Howard Bancorp and Bryn Mawr Bank are trying different approaches to reach out to underserved markets they’ve entered via acquisitions. Creative in-house initiatives may take on added importance as regulators move to "dial back" Community Reinvestment Act rules.