Lochmann Provides Insight to Banking M&A Slowdown in Law360 Article
Stinson LLP Partner Mike Lochmann is quoted in a Law360 article, "US Banking Industry Fears Zap Optimism For 2023 M&A Rally." The article details the already slow start to 2023 for banking mergers and acquisitions (M&A) across the nation and how recent bank failures have crushed earlier optimism for a rebound in banking sector activity.
"Most Midwestern banks have a bond portfolio, and all bond portfolios are down because of the rise in interest rates," Lochmann said. He states that anyone looking to sell their bank "has put that on the back burner because they don't want to recognize the bond losses."
He continues, "And publicly traded banks who have seen the market value of their stock decline by 20% or more will be reluctant to use their depreciated stock as currency to scoop up struggling banks, even at bargain prices."
Attorneys and banking professionals note that overall M&A numbers will be down because there are fewer banks. The number of U.S. banking institutions peaked in 1983-84 at 17,811, steadily declining to just 4,897 in 2021.
Lochmann is a trusted and strategic advisor to banks, financial services companies and FinTech innovators on complex regulatory and compliance issues and financing transactions. He applies his CPA background and deep knowledge of banking, corporate, securities and tax laws to counsel companies and individuals dealing with federal and state regulatory compliance issues and defend regulatory investigations and enforcement actions.
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