BRENTWOOD, TENN., November 26, 2013 – Fifty-two percent of bank executives and directors plan to purchase a healthy bank in 2014, according to a survey of 231 senior executives and directors of U.S. banks conducted by Bank Director and public accounting and consulting firm Crowe Horwath LLP. While the number of bank directors and senior executives interested in an acquisition continues to grow, just 5 percent of survey respondents indicate they’re willing to sell.
Key findings include:
- Fifty-eight percent of respondents think it is harder to get regulatory approval for an acquisition than it was five years ago.
- Forty-one percent of respondents think Basel III capital rules will cause M&A activity to increase, while 32 percent think they will not have an impact. Conversely, 54 percent of respondents think the Basel III capital rules will have little impact on their own M&A plans.
- For 35 percent of participants, coming to an agreement on price is the single greatest challenge their boards face when considering an acquisition or merger of equals. Sixty-three percent of potential buyers say that pricing expectations are too high, while 42 percent of potential sellers say that current pricing is too low.
- Assessing credit quality issues at the acquired institution is cited as one of the most difficult aspects of the acquisition by 53 percent of respondents. Post-merger integration, at 45 percent, and cultural compatibility, at 43 percent, also continue to be problematic for buyers.
The survey results are available online at BankDirector.com, and will be featured in the 1st quarter 2014 issue of Bank Director magazine. The survey was conducted by email in September.
ABOUT BANK DIRECTOR
Since 1991, Bank Director has served as a leading information resource for the directors and officers of financial institutions. Through its quarterly Bank Director magazine, executive-level research, annual conferences, and its website, BankDirector.com, Bank Director reaches the leaders of the institutions that comprise America’s banking industry. Bank Director is headquartered in Brentwood, Tennessee.
ABOUT CROWE HORWATH LLP
Crowe Horwath LLP (www.crowehorwath.com) is one of the largest public accounting and consulting firms in the United States. Under its core purpose of “Building Value with Values®,” Crowe uses its deep industry expertise to provide audit services to public and private entities while also helping clients reach their goals with tax, advisory, risk and performance services. Crowe and its subsidiaries have offices coast to coast with more than 3,000 personnel. The firm is recognized by many organizations as one of the country’s best places to work. Crowe serves clients worldwide as an independent member of Crowe Horwath International, one of the largest global accounting networks in the world, consisting of more than 150 independent accounting and advisory services firms in more than 100 countries around the world.
Contact: Emily McCormick, director of research, (615) 777-8471, [email protected]