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Several US banks set to cross $10B mark thanks to pending M&A

Several U.S. banks are poised to cross the $10 billion mark with the help of announced acquisitions.

The $10 billion mark remains a key threshold for banking institutions. After breaching $10 billion in assets, 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 clear $10 billion by a wide margin to offset the lost revenue.

Muncie, Ind.-based First Merchants Corp. announced on Oct. 10 that it would acquire Monroe, Mich.-based MBT Financial Corp., which would push the company above $11 billion in assets, up from $9.79 billion at the end of September.

During a call to discuss the deal with investors, First Merchants President, CEO and Director Michael C. Rechin indicated that the company expects to cross the $10 billion mark in early 2019 with the help of the transaction and organic growth. The company expects the fee loss associated with the Durbin amendment to begin in the third quarter of 2020.

Ontario, Calif.-based CVB Financial Corp., First American Financial Corp. and Irvine, Calif.-based Pacific Premier Bancorp Inc. crossed the $10 billion threshold during the third quarter.

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