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The Four Whys Driving More Buys | Excess Deposit Strategies Add to M&A Trend

Posted by Paul Davis on Aug 24, 2021 9:30:00 AM

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In response to the banking industry’s recent influx of deposits, several recent bank acquisitions show how some banks are responding to the pressure of putting liquidity to work.

Midsize banks like Truist Financial, Fifth Third Bancorp, Regions Financial, and some community banks have announced acquisitions where they plan to hold onto loans that the sellers would typically roll off the balance sheet.

Their objective? To redeploy billions of dollars in deposits held by the acquirers, shore up net interest margins, and boost returns.

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Topics: Lending Strategy, Mergers & Acquisitions

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