Banking on growth
FDIC-assisted assets may be an opportunity for midsized institutions
Midsized banks have taken heavy blows during the financial crisis. However, many among those still standing are looking to the future, and acquisitions and mergers are the path some are considering. Some banks may elect to enter into nongovernment-related (i.e. private sector) transactions. However, most acquirers view Federal Deposit Insurance Corporation (FDIC)-assisted transactions, especially those that include a loss-sharing feature, as a safer means to expand their franchises.
Banks that consider pursuing loss-sharing transactions as a way to generate growth should understand the process and all the aspects associated with acquiring a bank. By learning the unique considerations of purchasing FDIC bank assets and planning for the compressed deal timetables under which these transactions often take place, bankers can use these transactions to help achieve their growth goals.
Read this article to gain insights into FDIC-assisted deals.