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Is 2014 the year of M&A for community banks?

February 8, 2014
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With 228 M&A deals announced in 2013 alone, it’s easy to see why the total number of banks is estimated to decrease by 20-30 percent during this decade, according to Craig J. Mancinotti and Rick Maroney, co-managers of Austin Associates investment banking practice’. Since last year marked the third consecutive year that an increase in M&A activity occurred, 2014 could be the year for community and regional banks to either acquire smaller institutions, join forces to bring sufficient returns to their shareholders, or succumb to the infamous buyout.

So what does this mean for your institution? If your revenue has seen minor decreases, or you’re even struggling to turn a profit, now is the time to turn things around and make sure you stand out to your target customers. Take a lesson from small businesses to make your firm more attractive with these simple, yet vital, steps:

Make sure you know precisely what you have to offer. You have to know what value added you’re bringing to your customers.

Don’t be a jack of all trades. There’s no reason your firm needs to try to make everyone happy all the time. Some services simply aren’t viable for smaller community banks to offer.

Know your niche. Identify which markets are not receiving the attention they desire from other firms.

To learn more on the current M&A environment, and whether it’s the right choice for you, download the whitepaper Bank Mergers and Acquisitions.

About Abrigo

Abrigo enables U.S. financial institutions to support their communities through technology that fights financial crime, grows loans and deposits, and optimizes risk. Abrigo's platform centralizes the institution's data, creates a digital user experience, ensures compliance, and delivers efficiency for scale and profitable growth.

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