Did you know there are almost 5,000 different banks in the United States? With so many institutions of varying sizes, bank acquisitions are as common as they’ve ever been.
The reasons why acquisitions take place are as plentiful as the benefits they provide. When a larger bank acquires another bank, the result is advantageous for both parties. From gaining access to new staff members to saving a struggling business, the benefits of acquisitions are massive.
Discover five of the most recent bank acquisitions and explore some of the details regarding how and why they happened.
1. United Fidelity Bank Acquires Community Banks of Shelby Co.
A major bank acquisition was just completed in September of 2022. Fidelity Federal Bancorp purchased the Community Banks of Shelby County, Illinois. The banks were both headquartered in an overlapping area that includes Indiana and Illinois.
The CEO of Fidelity Bank, Don Neel, spoke about some of the reasoning for the merger:
“It has been our continued goal to move into markets with stable core deposits and where the management and staff have an exceptional reputation for sewing their communities. As part of our opportunistic growth strategy, we also seek out prime locations and opportunities to join forces with highly experienced and talented staff.”
While the CEO credited the increase in staff, the result of the bank acquisition improved their finances as well. After the merger, Fidelity is now worth $4.7 billion with 23 banking centers throughout the country.
2. Vision Bank Begins Acquisition of Legacy Bank
In another major acquisition involving two banks that serve central Iowa, Vision Bank of Iowa announced that it will acquire Legacy Bank. This indicates a significant change for a longstanding bank as Vision Bank of Iowa has been in business since 1884.
Citing a significant similar vision and values, CEO Heather Miller comments on the acquisition of Legacy Bank:
“Legacy’s leadership team and colleagues not only mirror the VisionBank mission, vision and values, they also offer exceptional consumer and commercial banking services.
We are confident that the powerful synergies, additional market coverage and financial strength this partnership creates will drive long-term success, and we are excited about combining the outstanding legacies of two strong, customer-and community-focused organizations.”
One of the fascinating aspects of this bank acquisition is the emphasis on having a similar culture, and how both banks have the same values. That serves as a testament to the advantage that a matching corporate culture can be when it comes to a bank or any other business acquisition.
3. Harmony Bank Purchases the Texas Brand Bank of Dallas
In early September, 2022, Harmony Bank announced it would merge with Texas Brand Bank of Dallas. While the deal is awaiting approval from shareholders, it’s expected to close by the end of 2022. Sharing a similar culture in Texas, this merger is expected to increase the market share and assets of Harmony Bank.
Previously known as the First National Bank of Kemp, a former senator purchased it in 2015. Last July, former Texas state Senator John Carona bought First State Bank of Rice and merged it with First National. The result was a new institution called Harmony Bank.
4. BankFirst Capital Corporation Acquires Mechanics Bank
BankFirst is a massive bank in Mississippi that holds $2.2 billion in assets. It will merge with Mechanics Bank, an institution in the same area that holds $330 million in total assets. The acquisition is likely to lead to significantly greater market share for both banks.
Addressing everyone who is benefitted by the bank acquisition, CEO Cameron Tyler comments on his decision to merge with BankFirst Capital:
“This is a great opportunity for our shareholders, customers, employees and communities. We look forward to joining the BankFirst team as they share our core values centered on community banking. This merger will expand the portfolio of financial products and services we are able to offer our customers while preserving our team and the relationships built over many years.”
5. Nevada State Bank Buys City National Bank
In a case of a state bank purchasing multiple branches of a national bank, Nevada State Bank is purchasing three Northern Nevada locations of the City National Bank. Although the locations will continue to operate as City National Bank, Nevada State Bank will have access to all accounts.
A Strategic Bank Acquisition
The decision to buy three bank branches within their primary market should prove fruitful for Nevada State Bank. As a state bank, their interests lie in Nevada, so purchasing all branches of City National wouldn’t have helped their goal of controlling the North Nevada market.
Since Nevada State Bank currently owns 17 locations throughout North Nevada, so the acquisition will bring that total to 20. Not only will the purchase give more market share to Nevada State Bank, but it also will benefit from high-net-worth partners of City National including the T-Mobile arena in Southern Nevada.
Bank Acquisitions and New Technologies
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