A lower corporate tax rate and a generally more bank-friendly regulatory environment should translate into a year of mergers and acquisitions in the Baton Rouge market.
As Business Report details in a new predictions feature, consolidation will continue happening to banks with less than $1 billion in total assets. These smaller banks are typically fighting flattening interest rate curves, slower loan and deposit growth, significant increases in cybersecurity expenses and rising deposit costs, making them more willing to explore getting acquired by bigger banks with more resources. As of September 2018, 86% of banks across the country fit that description.
So who is looking to buy? Keep an eye on Baton Rouge-based Investar which has in the past two years announced three bank acquisitions that were all under $1 billion in total assets. Expect more acquisitions from this community bank franchise in the coming year.