For those banks considering the acquisition of a failed bank, changes to the terms of a number of FDIC-assisted transactions announced in the second quarter of 2010 should be considered prior to the preparation of bids. Summarized below are a few of the changes in terms that have surfaced in recent transactions:
Several interesting issues have emerged related to these changes and should be considered if your institution is pursuing a failed bank.
To discuss the key considerations in pre- and post-acquisition or to discuss your institution’s specific situation in greater detail, contact Andy Gibbs (email@example.com) or Jay Wilson (firstname.lastname@example.org) at 901.685.2120. Complete confidentially is assured.
1 “FDIC: Changes to Loss-Share Structure Will Take Effect in April,” by Nathan Stovall and Joe Mantone. Published by SNL Financial, LC, March 26, 2010.
2 “FDIC Moves Ahead with Creative Thinking, Cheaper Failures” by Nathan Stovall. Published by SNL Financial, LC, April 20, 2010.
Reprinted from Mercer Capital's Bank Watch, June 2010.