
With Debt Cheaper, Expect Bank M&A Rebound
The fall opened with flurry of bank M&A in Massachusetts, and more deals could be on the horizon as the Federal Reserve follows through on promised rate cuts.
The fall opened with flurry of bank M&A in Massachusetts, and more deals could be on the horizon as the Federal Reserve follows through on promised rate cuts.
Worcester’s $534 million-asset community bank Bay State Savings Bank announced a new team of executives this month, with bullish ambitions for growth, but are these dreams warranted given an interest rate environment that’s pressuring banks?
While the level of turmoil will likely vary with each of the five major mergers planned by banks based locally or with significant presence here, mutual bank leaders see opportunities to gain customers and skilled employees.
Rockland Trust Co.’s acquisition of East Boston Savings Bank will give it the size needed to stay competitive and opportunities to increase revenue, analysts say, allowing the bank to keep pace with growing rival Eastern Bank.
While M&T’s entry into the market will change the state’s banking landscape, analysts believe the well-run institution will not disrupt the local industry – and it could even open a few opportunities for competitors.
Eastern Bank’s transformation will affect more than its place in the banking landscape. It could reverberate throughout the state’s banking industry.
Two community banks have gone fully public so far this year but going forward, mutual conversions in New England are likely to remain modest, according to experts, who say consolidation is the main culprit behind the new trend.
The rate of consolidation in the banking industry has lately been a cause for concern, as fewer banks typically means reduced access to banking services and small business loans.