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Cost-Cutting Prompting More Banks to Consolidate Charters
June 17, 2013
More and more small banks are concluding that charter consolidation is a sensible solution to the call for drastic spending cuts.
More and more small banks are concluding that charter consolidation is a sensible solution to the call for drastic spending cuts. The number of consolidation deals is on the rise; $794 million-asset MountainOne Financial Partners in North Adams, Mass., merged two of its banks, while the $590 million-asset Altrust Financial Services in Cullman, Ala., recently joined with two other banks in a charter agreement. The economic environment has made it difficult for managers to justify having multibank holding companies, explains John Hancock, head of the financial institutions practice group at Moss Adams in Portland, Ore. "We're in a terrible rate environment and margins are so thin," Hancock says. "The only thing we can control is efficiency."
Author: American Banker (06/17/13) Peters, Andy
Source: "Cost-Cutting Prompting More Banks to Consolidate Charters"