Travillian’s Post

The announced acquisition of Independent Bank Group by SouthState Corporation is a significant development in the banking sector. This all-stock transaction, valued at approximately $2 billion, will result in the creation of a $65 billion regional bank with a presence across the Southeast, Texas, and Colorado. Independent Bank Group, with its $18.9 billion in total assets, $15.7 billion in total deposits, and $14.6 billion in total loans as of March 31, 2024, will significantly bolster SouthState's financial standing. The combined company will have pro forma total assets of $65 billion, deposits of $55 billion, and gross loans of $48 billion upon the completion of the transaction. This merger is a strategic move that will enhance the operational efficiency and market reach of both entities. The CEOs of both SouthState and Independent Bank Group have expressed their excitement about the merger, highlighting the alignment in culture, business model, and credit discipline. The transaction, which is expected to close by the end of the first quarter of 2025, is subject to customary closing conditions, including receipt of required regulatory approvals and the approval by shareholders of Independent Bank Group and SouthState. This merger represents a significant opportunity for growth and expansion, and it's a positive development for stakeholders of both organizations. #banking #mergersandacquisitions

💳"𝗪𝗲 𝘄𝗶𝗹𝗹 𝗵𝗼𝗽𝗲𝗳𝘂𝗹𝗹𝘆 𝗵𝗮𝘃𝗲 𝗮𝗽𝗽𝗿𝗼𝘃𝗮𝗹 𝗯𝘆 𝘁𝗵𝗲 𝗲𝗻𝗱 𝗼𝗳 𝘁𝗵𝗲 𝘆𝗲𝗮𝗿" said Capital One's EVP, Andres Navarrete, in an August 9th interview with Delaware Business Times. Catch up on the fifth-largest bank merger in U.S. history - Capital One's $35bn acquisition of Discover Financial Services - by reading our article linked below! 🔍📊 #Banking #Finance #MergersAndAcquisitions #CapitalOne #DiscoverFinancialServices #Credit

Interesting news today for the financial sector, with the Australian Competition Tribunal giving the green light to the ANZ-Suncorp merger, overturning the ACCC's initial decision. This decision ultimately determined that the merger would not be likely to lessen competition in national mortgage lending, SME finance and agri-lending, the latter of which is relevant for Queensland. The Tribunal stated that the players were not big enough in size to materially reduce competition, noting that the competitive effect that brokers provide the lending market is improving access and distribution. They wrote, "while the home loans market is 'conducive to coordination', this risk has recently reduced and is likely to continue to reduce in the foreseeable future due to 'material asymmetry in the market shares of the major banks, the emergence of Macquarie as a maverick in the market, and the increasing use of brokers that has reduced consumer choice frictions and facilitated greater customer switching.'" Source: The Advisor, https://lnkd.in/gFw8F47w Grant Whinnett, Tony Ruellan, Jae Choi, Christopher H., William Kim

Toorak Capital Partners is excited to announce the successful closing of the first-ever rated residential transition loan (“RTL”) securitization. The $240 million deal, Toorak 2024-RRTL, was rated by Morningstar DBRS.     Morgan Stanley led the offering and served as initial purchasers along with Deutsche Bank, J.P. Morgan, Performance Trust Capital Partners, and KKR Capital Markets.     Toorak CEO and Founder John Beacham noted: "This development is a pivotal moment for our industry and a significant step forward in the institutionalization of the RTL market.”    Read the full announcement here: https://lnkd.in/e-gaXx47 #rtl #fixandflip #realestatefinance #capitalmarkets #realestatelending

The all-stock deal is among the largest announced in 2024. It would create a bank with nearly $40 billion of assets. For daily news and analysis subscribe to the https://lnkd.in/grcK6QEX newsletter. #Payments #Finance #Fintech

Global Credit Union acquires First Financial Northwest Bank for $231 million. Global Credit Union, originally Alaska-based, has announced a definitive agreement to acquire First Financial Northwest Bank for a substantial $231.2 million in an all-cash transaction. This deal represents a significant shift in the financial landscape of the United States, particularly in the western Washington region. The transaction is structured as a purchase and assumption agreement, where Global Credit Union will acquire most assets and assume liabilities of First Financial Northwest Bank. Post-acquisition, First Financial Northwest Bank and its parent company are set to wind down operations. Shareholders are expected to receive around $23.18 to $23.75 per share upon liquidation, with adjustments. This acquisition aligns with Global Credit Union's strategy to broaden its business and commercial services. It also aims to enhance its branch presence across western Washington, providing a more extensive service network for its members. The deal is projected to close in Q4 2024, pending regulatory approvals, consent from First Financial Northwest’s shareholders, and customary closing conditions. Global Credit Union, founded in 1948 and operating in five US states, boasts 750,000 members and over $11 billion in assets. First Financial Northwest Bank, established in 1923, is a full-service community commercial bank with significant assets and deposits. Geoff Lundfelt, president and CEO of Global Credit Union, emphasizes that this merger will fortify service delivery and growth in the market. He highlights First Financial Northwest Bank's technology-forward branch network as a key factor in advancing Global's transformation for future business conduct. The article on FinTech Futures in the first comment. Want to stay up to date with the market? Here my newsletter: - Linkedin: https://t.ly/s541W   - Substack: https://lnkd.in/dzfGJzmW

Huge decision for the industry. Will be interesting to see if this leads to further acquisitions of regionals by the Big 4.

🔮 Prediction: The divestiture of the $5 billion loan portfolio by New York Community Bancorp to JPMorgan Chase is just the beginning of a larger trend in the banking industry. Here's why: ➡️ As regulatory pressures increase, more banks may follow suit and retreat from lending to nonbank home lenders. ➡️ This move by New York Community Bancorp could set a precedent for others looking to streamline their operations and reduce risk exposure. ➡️ The debate sparked by this deal highlights the evolving landscape of financial institutions and their strategic decisions. 💡 General Commentary: ➡️ It's not surprising that investors are reacting negatively to this divestiture, as it introduces an element of uncertainty in the market. ➡️ However, challenges often pave the way for innovation and new opportunities, so it's crucial for banks to adapt to changing conditions. ➡️ Keep an eye on how other banks respond to this development, as it could signal a significant shift in the lending landscape. In conclusion, while change can be unsettling, it also presents possibilities for growth and adaptation. The banking industry is no stranger to transformation, and this latest move by New York Community Bancorp may be a sign of things to come. What do you think - will more banks follow suit in retreating from nonbank lending, or will we see a different trajectory unfold? Share your thoughts below!

Did the Fed just signal a change in its merger review policy? The OCC and FDIC both recently proposed changes to their guidelines for reviewing bank mergers. The OCC indicated that any merger resulting in an institution with over $50 billion in assets would likely be “inconsistent with approval,” as would any acquisitions by a GSIB or subsidiary of a GSIB. The FDIC proposed to apply “heightened scrutiny” to mergers resulting in an institution over $100 billion in assets. The Fed has not formally proposed any changes to its merger review processes. However, in a recent order approving an application by VersaBank (a $3.3 billion Canadian bank) to form a holding company to buy $78 million Stearns Bank, the Fed writes: “The Board’s experience has shown that proposals involving an acquisition of less than $10 billion in total assets, or that result in a firm with less than $100 billion in total assets, generally are not likely to pose systemic risks.” Does that mean the Fed views mergers resulting in banks over $100 billion are presumed to pose systemic risks? They do not say. However that section also contains the following footnote: “Notwithstanding this presumption, the Board has the authority to review the financial stability implications of any proposal. For example, an acquisition involving a global systemically important bank could warrant a financial stability review by the Board, regardless of the size of the acquisition.” As the Bank Policy Institute has pointed out (see link in comments), the Fed has in the past actually found that some acquisitions by GSIBs can *increase* financial stability (for example, when Goldman acquired GE Capital Bank). Does the Versa order signal a shift in Fed policy? Curious for other views. https://lnkd.in/emH6PjHa

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