Archive for February 23, 2010
American Banker Offers Tips for Community Banks to Acquire Failed Banks
Today’s American Banker online has an article (available here, subscription required) by Kate Davidson in which she recites tips from community bank officers on how to submit a successful bid package for failed banks. Among the more noteworthy tips for community banks are the following:
- Realize from the outset that small banks are at a competitive disadvantage in the bidding process.
- Track potential targets by monitoring regulatory actions every month.
- Raise capital well before making a bid. It demonstrates stability.
- Target fewer and smaller banks.
- Demonstrate that experienced management will be in charge of the failed bank after the acquisition.
