Smaller banks could make for compelling targets for larger buyers looking to expand into new markets and add deposit share.
“JMP Securities’ Christopher York notes that the Fifth Third-MB Financial deal was the largest since 2015, and it could be the first of a wave of U.S. small and mid-cap bank M&A activity, particularly among banks small- and mid-size banks with similar characteristics as MB Financial,” reports Barron’s.
KRE, which follows the S&P Regional Banks Select Industry Index, is up about 11% this year. Year-to-date, investors have added nearly $374 million to the fund.
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