Olney, Md.-based Sandy Spring Bancorp Inc. and Toms River, N.J.-based OceanFirst Financial Corp. are set to cross the $10 billion threshold as a result of pending acquisitions.
The $10 billion mark remains a key boundary for banking institutions. After a bank hits that size, debit card interchange income can drop by half due to restrictions imposed by the Durbin amendment, part of the landmark Dodd-Frank Act. Most institutions try to jump over the threshold by a wide margin to offset the lost revenue.
Sandy Spring agreed to acquire Rockville, Md.-based Revere Bank on Sept. 23. The acquisition, once completed, will push the bank over the $10 billion mark. The company also agreed to acquire Falls Church, Va.-based Rembert Group Inc., an asset management firm, on Nov. 6.
OceanFirst Financial's two pending acquisitions of Tinton Falls, N.J.-based Two River Bancorp and New York-based Country Bank Holding Co. Inc., announced Aug. 9, will help the company cross the $10 billion threshold. As of Sept. 30, the company reported $8.14 billion in total assets.
Wyomissing, Pa.-based Customers Bancorp Inc., which crossed the $10 billion mark again earlier this year, reported $11.73 billion in total assets as of Sept. 30. According to the third-quarter earnings call, the bank reclassified about $500 million of multifamily loans to held-for-sale in the second quarter, and it expects additional runoffs along with natural contraction in mortgage warehouse balances in the fourth quarter to bring total assets below $10 billion by the end of the year.