Frank Sorrentino, CEO of ConnectOne, says bankers who are unwilling, or unable, to invest in technology upgrades may have to find buyers as competition heats up.
The Columbus, Ga., company ramped up its business and consumer lending even as it scaled back lending on construction and commercial real estate projects.
On paper, conditions would seem favorable for regional banks to pursue acquisitions in order to overcome organic growth challenges. But executives have poured cold water on that idea in recent days.
Commercial and industrial lending rose 8% in the third quarter at the Cleveland bank, but other factors drove its double-digit gain in profits as overall loan growth was modest.
Many community banks face the same challenges that drove AJS Bancorp to become a seller, but few if any would go to the lengths that it did to seek a buyer.
