The 2008 Sub Prime Mortgage Crisis did not take place on just one day – the experts can point to deteriorating financial figures going back to 2005. The Texas Bankers Association’s 5th Annual Strategic Opportunities and M&A Conference (November 6 to 8, 2016) addressed growth opportunities. How many banks have failed in the beginning of 2017? Are any of these prime mergers & acquisitions (M&A) opportunities?
“Failed Banks Beginning of 2017”
During the Sub Prime Mortgage crisis, there were 140 failed banks in the year of 2009. These were “received” by the Federal Reserve, which determined what to do with the remaining assets. In 2016, there were only 5 failed banks. For the beginning of 2017 up to May, the following 5 banks have failed: Harvest Community (NJ), Seaway (IL), Proficio (UT), First NBC (LA) and Guaranty (WI).
It is interesting to note that the 5th Annual Strategic Opportunities and M&A Conference actually took place in Louisiana, so the First NBC Bank failure and acquisition by Whitney Bank might have been a discussion topic. Which banks might merge to fend off insolvency or grow?
“Finding Strategic M&A Opportunities”
While the primary topic for the Texas Banking Conference was exploring “strategic opportunities through M&A activity as well as through organic growth and branching,” a new topic was added. This additional topic was called “Reinventing Community Banking: Perspectives on Competing by Innovation.” NexBank CEO John Holt was a featured panelist.
Dallas based NexBank had assets of $4.6 billion as of December 31, 2016 with healthy financial ratings from some of the top industry watchdogs. The bank specializes in commercial banking, mortgage banking and institutional services. While 2017 is not 2009, it has started out with about an average of a bank failure each month. The industry should take note.