FORVIS lands US bank M&A deal weeks after ProBank Austin acquisition

FORVIS LLP's investment banking arm, Forvis Capital Advisors LLC, sent a signal to the market that it can still land M&A deals in the bank space, even after the departure of some veteran advisers who had been with ProBank Austin.

When FORVIS acquired Louisville, Ky.-based ProBank Austin in a deal announced Sept. 12, a contingent of investment bankers — including Craig Mancinotti and Rick Maroney — left the acquired firm for Hovde Group LLC, where they are focusing on M&A and capital markets transactions in the depository space.

FORVIS retained at least two of ProBank Austin's investment banking team members, according to the company website — ProBank Austin Chairman and CEO Chris Hargrove and senior managing consultant Susan Rapier.

Even without the team that moved to Hovde, FORVIS was able to land a spot on City Holding Co.'s $60.5 million deal to acquire Citizens Commerce Bancshares Inc., advising the seller in a transaction announced Oct. 18.

Hargrove has advised on at least 30 U.S. bank M&A deals since the start of 2014. Ten were worth more than $20 million, including Thumb Bancorp Inc.'s pending acquisition of Exchange State Bank Corp., announced in August.

At the time they acquired the firm, FORVIS executives said they expected the ProBank Austin deal to boost their advisory business in the financial institutions space, and not just with M&A work. FORVIS said it took on 50 ProBank Austin staffers who offer a variety of services.

In particular, the firm is taking on capabilities including asset and liability management modeling, interest rate risk modeling and other educational services, plus "deep expertise" in the areas of regulatory compliance, loan review and internal audit services, FORVIS regional managing partner Troy Gilstorf said in an email in early October.

"While we have helped our clients with their capital advisory needs in virtually all of our industry lines, the expertise of ProBank Austin in the financial institution space will create more coverage in that industry," Gilstorf said.