trending Market Intelligence /marketintelligence/en/news-insights/trending/LAN_hs_tA2gYedYzCvUKUA2 content esgSubNav
In This List

Texas bank eyes in-state peer buy; CECL may impact bank M&A pricing

Blog

Using ESG Analysis to Support a Sustainable Future

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook


Texas bank eyes in-state peer buy; CECL may impact bank M&A pricing

In Texas, WSB Bancshares Inc. is looking to take direct control of First Paducah Bancshares of Texas, the parent company of First National Bank of Paducah, according to a notice published on The Red River Sun of Texas.

First Trust & Savings Bank of Albany Illinois agreed to merge into Morton, Ill.-based Morton Community Bank. The transaction, which will add four branches to Morton Community Bank, will close in the fourth quarter.

Baton Rouge, La.-based Investar Bank NA is buying PlainsCapital Bank's Victoria and Alice branches in Texas, according to the Greater Baton Rouge Business Report. Pursuant to the transaction, expected to close in the first quarter of 2020, Investar Bank will acquire $42 million in deposits, $52 million in loans and about $2 million in property and equipment.

Capital One Financial Corp. agreed to acquire investment banking firm KippsDeSanto & Co. in a deal that is expected to close late in the third quarter.

Goldman Sachs Asset Management LP's Petershill program made a nonvoting minority equity investment in Slate Asset Management LP, a Toronto-based alternative asset management platform with a focus on real estate and real assets.

Eric Rosengren, president of the Boston Federal Reserve, who voted against the Fed's July 31 rate cut, said he was open to easing policy but would first want to "see evidence" that slower growth abroad is spilling over into the U.S. and weakening the economy substantially.

Bob Fehlman, CFO of Simmons First National Corp. that has an extensive acquisition history, said in an interview that the new accounting standard known as the current expected credit loss, or CECL, will affect the price the bank is willing to pay on future deals. Bankers and investors have expressed concern that CECL's treatment of acquired loans will complicate M&A modeling by "double-counting" the credit risk for acquired loans. Joe Stieven, president of Stieven Capital Advisors, does not expect CECL to prevent a bank from pursuing a deal, but he does expect it to complicate the financial modeling.

INX Ltd., a Gibraltar-based firm that is developing a regulated solution for trading blockchain assets that will initially include a cryptocurrency trading platform, filed with the U.S. Securities and Exchange Commission to raise up to $129.5 million through an initial public offering of 130 million INX Tokens. Each INX Token will entitle its holder to an annual pro-rata distribution of 40% of the company's net cash flow from operating activities, excluding any cash proceeds from an initial sale by the company of an INX Token.

In his latest tweet about the Federal Reserve, President Donald Trump criticized the central bank and Fed Chairman Jerome Powell for a "horrendous lack of vision." The president said that the Fed should reduce its benchmark interest rate by at least 100 basis points, with perhaps some quantitative easing as well.

In other parts of the world

Asia-Pacific: China local debt sales; DHFL resolution plan; Westpac customer refunds

Europe: ECB hack warning; Jyske earnings; SocGen to take part in cum-ex trial

Middle East & Africa: Zenith Bank profit up; Fitch downgrades Lesotho; Sanlam expects lower earnings

Now featured on S&P Global Market Intelligence

Bank stocks hit hard in August as yield curve worries rise: A widened negative spread between 10-year and 3-month U.S. Treasury yields has resulted in bumpy returns for U.S. banks and thrifts so far in August.

Loan growth at 10 largest US banks lagged industry in Q2'19: Total loans and leases at the 10 largest U.S. banks by assets grew only 1.0% in the second quarter, compared to the wider industry's 1.5% growth. Among the four largest U.S. banks, Bank of America NA reported the largest quarter-over-quarter increase in loans at 2.0%.

The day ahead

Early morning futures indicators pointed to a mixed opening for the U.S. market.
In Asia, Hang Seng dropped 0.23% to 26,231.54, while the Nikkei 225 gained 0.55% to 20,677.22.
In Europe, around midday, the FTSE 100 climbed 0.43% to 7,220.27, and the Euronext 100 rose 0.07% to 1,045.99.

On the macro front

The Redbook Index for retail sales is due out today.

Click here to read about today's financial markets, setting out the factors driving stocks, bonds and currencies around the world ahead of the New York open.

The Daily Dose has an editorial deadline of 7:30 a.m. ET. Some external links may require a subscription. Links are current as of publication time, and we are not responsible if those links are unavailable later.