KPMG Banking & Financing M&A Monthly


January 2010	SEARCH ANALYSIS ARCHIVE FEEDBACK

KPMG ANALYSIS

Meeting the Challenges of Acquiring Bank Assets

While the benefits of acquiring the assets of failing institutions can be significant, buyers are confronted with a myriad of issues and challenges, virtually overnight.

The Future of Fair Lending Examinations

KPMG surveyed senior industry executives on the current state of fair lending exams and the future implications of changing requirements.

Feature of the Month

Bank M&A Complicated by Failures

THE STREET.COMOther than FDIC-assisted deals for failed institutions, bank acquisitions have been slow to close due to heightened regulatory scrutiny.

NEWS FROM REUTERS

Banks May Shed Private Equity Assets in Obama Plan

Proposed plan to limit financial risk-taking could force banks to shed parts of their private equity operations.

Processing Deals Pick Up, NA Bancard on Sale

Deal activity has increased within the payment processing sector after a two-year lull.

Blackstone Chief Says Eyeing U.K. Banking Market

One of the world's leading buyout firms is examining the possibility of entering the U.K. banking market.

Major Global Banks Split on Regulation Battle

The world's top financiers are at odds about how to fight back against a global push for tougher financial regulation.

Ross Possibly Interested in Teaming on Northern Rock

Investor Wilbur Ross likes the Virgin Money model and may be interested in joining in a bid for Northern Rock.

Other News

'Too Big to Fail' Fix Gaining Traction?

THESTREET.COMRegulators should consider methods for breaking up financial firms considered 'too big to fail.'

More Certainty Around Regulations Will Lead to Pickup in Bank M&A Activity

THE CANADIAN PRESS [LEXISNEXIS]Canada's largest banks expect M&A activity to increase in 2010 as new rules come into effect.

Bank of America Chief Says LaSalle Bank Acquisition was Worth the Money

TENDERSINFO [LEXISNEXIS]The bank's CEO values the market presence established in Chicago.

OCC Approves First Use of Shelf Charter to Acquire Failed Bank

TARGETED NEWS SERVICE [LEXISNEXIS]The OCC approving the use of a "shelf charter" expands the pool of potential buyers available to buy troubled institutions.

INDUSTRY M&A ACTIVITY

As of January 31, 2010, nine financial institutions have failed in 2010. Among the nine FDIC assisted deals in January, the FDIC entered into purchase and assumption agreements with Columbia Banking System to acquire Columbia Bancorp, Umpqua Holdings to acquire EvergreenBank and Washington Federal to acquire Horizon Bank. The terms of the transactions were not disclosed. (1/31)

As of January 31, 2010, 62 financial institutions have made full repayments of TARP funds with an aggregate value of $122 billion. The largest repayment in January 2010 was from Boston Private Financial, which had an approximate value of $50 million. (1/31)

Daham Net Co, of South Korea, agreed to acquire a 25 percent stake in Los Angeles-based Saehan Bancorp for $17 million. (1/20)

Prosperity Bank agreed to acquire three US Bank branches located in Texas. Terms were not disclosed. (1/19)

Blackstreet Capital Management agreed to acquire Wyoming Financial Lenders from Western Capital Resources. Terms were not disclosed. (1/13)

Chemical Financial agreed to acquire OAK Financial, a commercial bank, in a transaction valued at $101 million. (1/7)

Midland States Bank agreed to acquire 14 locations from AMCORE Bank of Rockford, IL. Terms were not disclosed. (1/5)

Source: Company press releases.

MERGER STATISTICS

Overall, deal values and number of transactions continued to remain at low levels in the fourth quarter of 2009. However, specialty finance deal values increased slightly from the previous quarter primarily due to three deals that were individually greater than $500 million. Historicall high deal volume in the fourth quarter of 2008 and the first quarter of 2009 was fueled primarily by the U.S. Treasury's investment in banks under the TARP program, which has subsequently slowed down significantly.

View data detail.

KPMG’S TRANSACTION SERVICES PRACTICE

KPMG’s Transaction Services and M&A Tax practices comprise over 600 partners and professionals in the United States, solely devoted to providing acquisition and divestiture support and advisory services to strategic and financial investors.

For more information about KPMG's transaction services capabilities in the banking and financing sector please contact: Miguel Sagarna, Principal at 212 872 5543 (msagarna@kpmg.com) or Tim Johnson, Partner at 312 665 1450 (tejohnson@kpmg.com).

KPMG M&A Monthly sends these e-mail alerts only to people who requested them. You requested these e-mail alerts when you signed up at www.KPMGMandAMonthly.com. To change your e-mail preferences, the format of your message, or your e-mail address, please go to our Profile page at www.KPMGMandAMonthly.com. As an alternative option, please reply to this e-mail with "Unsubscribe" as the subject.

Privacy | Legal