The Federal Reserve banks have received more than three dozen mergers-and-acquisitions applications over the last two months — with many acquisition targets located in the Midwest. In addition, a Japanese bank holding company is seeking to acquire a New York holding company, an asset management corporation and an investment firm. And the sale of one Texas bank to another could open up the flood gates to additional Texas mergers and acquisitions.
Dallas-based Comerica Inc. announced last month its plans to acquire Houston-based Sterling Bancshares for 2.3 times its tangible book value, equivalent to $1 billion. In the news release, Comerica said, “The strategic acquisition accelerates Comerica’s growth in Texas and maintains Comerica’s capital strength.”
A Mergermarket Group report said other Texas banks might be inclined to follow suit, citing lack of growth which increases pressure to sell.
Among prospective acquisition targets are the Dallas-based banks Texas Capital Bancshares and PlainsCapital and the Houston-based institutions Encore Bancshares and Prosperity Bancshares, according to the Jan. 21 report.
In Georgia, Albany-based Heritage Financial Group Inc. announced last week plans to acquire failed Citizens Bank of Effingham from the Federal Deposit Insurance Corp. Assets at the failed institution are $214 million.
Redwood Credit Union, which claims to be the 68th largest U.S. credit union and the 12th largest in California, has agreed to acquire Cal State Central Credit Union on April 1, the companies jointly announced Monday. Cal State’s more than 16,000 members will transition to Redwood on June 1.
U.S. Bank, N.A., completed the acquisition of the domestic and European-based securitization trust administration businesses of Bank of America, N.A., according to a Jan. 4 announcement from parent U.S. Bancorp.
The deal included 2,000 active securitization and related transactions, more than 2.4 million residential mortgage files and 84,000 commercial files. It also included $1.1 trillion in assets under administration.
All of the acquired U.S. and European trust businesses will operate und the U.S. Bank trade name after the conversion, which is expected to be complete by end of third quarter 2011.
In a correction for a December 22, 2010 entry for Chuo Mistui Trust Holdings, Inc., the Federal Reserve added that in connection with that application, Chuo Mistui has also applied to “acquire Nikko Americas Holding Co., Inc., Nikko Asset Management Americas, Inc., and Chuo Mitsui Investments, all of New York, New York, and thereby engage in investment advisory activities.”
