The sale of the parent corporations for Founders Bank & Trust and The Bank of Holland are the latest deals in a merger trend across the banking industry in Michigan that M&A experts expect will only continue to occur in coming years. Given the pressures from increasing regulatory burdens and fierce competition, plus a limited potential for growth, prospective buyers remain on the prowl and should find willing sellers if the price is right.
Jason Byrd, managing director of the financial institutions practice at Charter Capital Partners in Grand Rapids, describes the present environment for bank M&A as “rationally exuberant.” Another eight or more deals in Michigan over the next year or so “wouldn’t be surprising to me,” Byrd said. “There are probably good reasons we’re going to see many more transactions,” he said. “I just think you’ll see a consistent march toward consolidation.” more