Miami partner Bowman Brown, a member of the firm’s Financial Services Practice Group, was recently quoted in an article published by MiamiToday titled “As Big Banks Swallow Smaller ones, Choices Dwindle.” The article discusses the ongoing cycle and slowdown of smaller bank acquisitions and mergers.
“There are very few small community banks left to be acquired,” states Mr. Brown. “The number has diminished very significantly, so that there just aren’t that many acquisition targets. Some of them are owned by other, bigger financial conglomerates and really aren’t for sale, and others that might be targets have basically put everything on hold, and so have the acquirers, because of the stress that banks have been under with the economic downturn…. The activity has dried up.”
Mr. Brown believes the cost of leading-edge technology, the cost of complying with federal and state legislation and director and shareholder fatigue have played a role in the trend of smaller banks being acquired by larger banks.
“The absence of community banks, I do think, puts some pressure on smaller businesses, and makes it harder for them to find financing. It’s important to remember that smaller community banks are very important to servicing smaller businesses, and smaller businesses are really the heartbeat of the economy for Dade County and South Florida,” said Mr. Brown.
To read the full article, please click here.
About Bowman Brown
Bowman Brown is a Partner in the Miami office of Shutts & Bowen LLP, where he is a member of the Financial Services Industry practice group. His practice focuses on the financial services industry and insurance regulatory matters. Over the course of his career, Bowman has been at the forefront of the international legal arena. He has helped transform Florida into an international banking and business center through his efforts to make Florida, and South Florida in particular, the leading location for international banks and businesses targeting Latin America and the Caribbean.