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Strategic Considerations for Financial Institutions Planning to Raise Capital, Merge, Acquire or be Acquired

By Jamie Card, on December 2nd, 2019

Takeaways from The Bonadio Group’s 2019 Financial Institutions Seminar

During the month of November, The Bonadio Group hosted a series of seminars for financial institutions across New York State. At each event, the firm convened subject matter experts from Nixon Peabody, Luse Gorman, PC and others to share insights regarding emerging issues facing financial institutions.

Among the presentations was a review of alternatives to raise capital, merge, acquire or be acquired. Since Dodd-Frank, financial institutions have been faced with higher capital requirements, additional consumer disclosure and compliance procedure, and a greater emphasis on corporate governance. As a result, leaders of financial institutions have much to consider when planning for their future.

To start, decision makers should ask the following questions in the strategic planning stage:

  1. Can we survive and thrive as an independent bank? (i.e., are we able to earn our independence?)
  2. Do we have the personnel and drive to execute on our long-term business strategy?
  3. Do we operate in a market with organic growth potential?
  4. Do we have the capital to support a growth/acquisition strategy?
  5. Are we ready to execute an M&A transaction if there is an opportunity?
  6. Can we attract talent/the next wave of management and directors?

Depending on the responses to the questions above, there are a number of additional factors that may drive financial institutions to acquire another:

  • Strategic fit
  • Offset stagnant earnings growth, alleviate funding challenges
  • Improve operating efficiency
  • Economies of scale
  • Empire building

Or, on the flip side, be acquired:

  • Age and tenure of CEO, depth of bench
  • Board fatigue
  • Deposit market share and core deposit mix
  • Weak/limited loan growth
  • Expenses, technology hurdles

Bonadio’s specialized offerings to banks, mortgage and finance companies, broker-dealers, credit unions and more types of financial institutions is extensive, spanning far beyond their multidisciplinary, state-of-the-art financial statement audit service. The firm is best known for its combination of practicing to the highest standards and taking a proactive approach with its hundreds of banking industry clients ranging in size from de novo status to $24 billion in total assets.

Visit to learn more about this established practice and subscribe to email updates here: to receive information about the firm’s 2020 Financial Institution Seminars.

This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.

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Written By

Jamie Card April 2020
Jamie Card
Industry Leader, Financial Services

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