Financial institutions are looking to mergers and acquisitions to expand their footprints in growing markets and leaning on their growth for technology investment. 

For smaller financial institutions, their M&A strategy is usually “to get a bigger portfolio of assets to smooth your expense base as the costs of regulation are going up,” Dan Goerlich, U.S. banking and capital markets deals leader at accounting firm PwC, told Bank Automation News. 

According to PWC’s “Banking and capital markets: US Deals 2024 midyear outlook” report, FIs are considering M&A deals to: 

• Grow; 

• Add technology capabilities; and 

• Adjust portfolios to differentiate assets. 

For example, $2.7 billion Academy Bank is set to acquire $188 million Westminster, Colo.-based Mountain View Bank of Commerce to support its “three-pronged growth strategy,” Academy Bank Chief Executive Paul Holewinski told BAN.

Academy’s strategy, Holewinski said, includes: 

• Branch acquisition in its growth markets of Missouri, Kansas and Arizona; 

• The addition of banking centers over the next year; and 

• Expansion through hiring efforts. 

As Academy Bank expands, Mountain View Bank of Commerce has its own strategy, Holewinski said, noting, through the deal, Mountain View clients will gain “new products, technology and resources.” 

The acquisition is expected to close in the fourth quarter, according to the release. 

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