Nine banks grew above $10 billion in assets in the first quarter, one has already surpassed that threshold in the second quarter, and another five are set to cross the mark via pending acquisitions.
The $10 billion mark remains a key threshold for banking institutions. After breaching $10 billion in assets, debit card interchange income drops due to restrictions imposed by the Durbin amendment. Oftentimes banks will try to "leap" over the $10 billion mark in order to make up for this foregone revenue.
Just after the first quarter ended, Cincinnati-based First Financial Bancorp. crossed $10 billion thanks to its completed acquisition of Greensburg, Ind.-based MainSource Financial Group Inc., which closed April 1.
Most recently, on June 12, Warren, Pa.-based Northwest Bancshares Inc. announced that it would acquire Marietta, Pa.-based Donegal Financial Services Corp., which will send the company's assets just slightly north of $10 billion. According to CFO William Harvey, Northwest has been preparing for the $10 billion threshold for seven years and the Durbin amendment was the last hurdle to crossing the threshold, even though it will not affect the company until 2020.
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