Ten banking institutions are poised to cross $10 billion in assets through M&A, according to an S&P Global Market Intelligence analysis.
The $10 billion mark remains a key hurdle with significant operational implications, including examinations from the Consumer Financial Protection Bureau, stress testing and reduced interchange fee income because of restrictions imposed by the Durbin amendment. Strategic planning for the event can begin years in advance, and M&A remains a popular method for those institutions seeking to cross the threshold.
Ontario, Calif.-based CVB Financial Corp. is the latest institution set to leap across $10 billion. In February, the company announced an $878.3 million deal to acquire Pasadena, Calif.-based Community Bank, resulting in pro forma assets of $12.02 billion. CVB Financial projects it will incur $2 million to $3 million in one-time costs associated with breaching the asset mark, and it expects recurring regulatory expenses of $3 million to $4 million per year.

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