Chicago-based Banc Funds Co. LLC exited a total of 21 U.S. financial institution positions in the first quarter, seven of which were due to M&A activity.

Overall, the firm's exposure to U.S. bank stocks was flat, at about $1.34 billion at the end of the quarter, according to the firm's latest latest Form 13F filing.

Banc Funds' largest non-M&A-related exit was an $8.5 million stake in Richmond, Va.-based Union Bankshares Corp., while its largest exit due to merger activity was a $6.1 million position in Houston-based Green Bancorp Inc., which was acquired by Dallas-based Veritex Holdings Inc. on Jan. 1.

Founded in 1986 by Charles Moore, Banc Funds is focused on the U.S. financial sector, with most of its holdings in regional banks.

Grand Rapids, Mich.-based Mercantile Bank Corp. remained the company's largest financial institution holding for the fifth consecutive quarter, at $34.0 million, despite Banc Funds trimming its position by 12.9%.

Overall, Banc Funds increased its stakes in 11 of its top 20 financial institution investments as of March 31.

Banc Funds also added five new bank positions collectively worth $12.8 million as of March 31. The largest entry was a $6.9 million stake in Columbus, Ga.-based Synovus Financial Corp., which acquired Weston, Fla.-based FCB Financial Holdings Inc. on Jan. 1. Banc Funds held a $4.2 million investment in FCB at the end of 2018.

Did you enjoy this analysis? Click here to set up real-time alerts for data-driven articles. Click here for a template that allows users to analyze Banc Funds' financial institution holdings as of March 31, 2019. Click here to view Banc Funds' current holdings. Company filings including the 13F can be found through the filings archive tab on a company's briefing book page.