The AOBA's "Acquire or Be Acquired" conference is the financial industry's premier bank M&A conference for bank CEOs, senior management and board members. The annual event brings together key leaders from across the country to explore merger and acquisition strategies and financial growth opportunities.
Adam Maier and Bob Monroe were featured speakers in a bank M&A break-out session entitled "Case Studies to Enhance a Community Bank's Value". The discussion highlighted the complex issues involved in a bank sale by a seller with an ESOP as a minority shareholder, including the process of complying with ESOP laws and regulations, escrow requirements, corporate issues and family dynamics. The presenters also commented on the surprising timing, intense regulatory scrutiny, bargain purchase gain concerns and management retention issues associated with a distressed bank transactions forced into sale by TruPS holders.
Our conference attendees also shared a few key topics that were recurring throughout the conference:
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The consolidation of community banks will continue.
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Past dues and asset quality were at acceptable levels in 2015, but most experts anticipate an increase in past dues and a decrease in asset quality in 2016.
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There will be continued pressure on the global economy, which may lead to a recession.
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FinTech will continue to play a role in the future of community banks.
