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1 bank crossed the $10B asset mark in Q2'19

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1 bank crossed the $10B asset mark in Q2'19

Rockland, Mass.-based Independent Bank Corp. was the only bank to cross the $10 billion threshold during the second quarter, thanks to its acquisition of Norwood, Mass.-based Blue Hills Bancorp Inc., completed April 1.

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.

One other bank is gearing up to cross the $10 billion line, while others are hovering just below.

On March 15, Walnut Creek, Calif.-based Mechanics Bank agreed to acquire Roseville, Calif.-based Rabobank NA except its food and agribusiness assets. Mechanics Bank reported $6.30 billion in total assets as of June 30, while Rabobank had $13.19 billion.

Jersey City, N.J.-based Provident Financial Services Inc. ended the quarter with $9.94 billion in total assets. According to its second quarter earnings call, the company does not expect to cross the $10 billion threshold this year and will make efforts to stay below if it gets closer.

Toms River, N.J.-based OceanFirst Financial Corp. announced two deals on Aug. 9 that would bring the bank's assets to $9.92 billion. OceanFirst reported $8.03 billion in total assets as of June 30 and expects to stay below the $10 billion threshold in 2020.

Wyomissing, Pa.-based Customers Bancorp Inc. jumped past $11 billion during the second quarter but will reduce the balance sheet in the fourth quarter by $1 billion to $1.5 billion to stay below the Durbin threshold, according to the company's July 24 earnings call. The bank crossed $11 billion during the second quarter of 2018 as well, but it managed to cut back below $10 billion by the end of the year.

Santa Ana, Calif.-based Banc of California Inc. continued to optimize its balance sheet and stayed below $10 billion during the second quarter. However, the bank is not exempt from the debit card interchange standards this year, having reported total assets greater than $10 billion at the end of 2018. According to the company's first quarter earnings call, the Durbin amendment had very little impact on the company.

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