Today, both the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) finalized new guidelines regarding bank mergers. According to the agencies, these updates aim to enhance transparency and provide clearer guidance on the evaluation of merger applications under the Bank Merger Act (BMA).
Troutman Pepper client CBB Bancorp, the holding company for Century Bank of Georgia, completed its sale to Southern States Bancshares, Inc., the holding company for Southern States Bank on July 31, 2024. CBB Bancorp merged with and into Southern States and Century Bank merged with and into Southern States Bank, with Southern States and Southern States Bank surviving. Troutman Pepper partners James Stevens, Constance Brewster, Emily Schifter, and Morgan Klinzing, and associates Caitlin Oh, William Mayo, Sarah Hanna, Peter Dragna, and Regina Tisdale advised CBB Bancorp in the transaction.
Troutman Pepper partner James Stevens spoke at the annual Georgia Bankers Association meeting alongside Jonathan Hightower, a partner at Fenimore Kay Harrison. Their discussion focused on how, after a challenging year in 2023, many banks are seeking opportunities to regain forward momentum. During the session, James and Jonathan explored various growth opportunities for banks, including the resurgence of community bank mergers and acquisitions, strategies for nontraditional deposit growth, compensation and retention tactics, and leadership succession planning. Additionally, they addressed ways to mitigate emerging risks amidst heightened expectations from regulators and other stakeholders.
James Stevens, co-leader of Troutman Pepper’s Financial Services Industry Group, was quoted in the May 13, 2024 S&P Global Market Intelligence article, “Latest FDIC Merger Proposal Threatens Approval Timelines, Due Diligence Process.”
Former FDIC Executive Join Firm’s Dynamic D.C. Office
Alexandra Steinberg Barrage, a former FDIC executive with over a decade of bank regulatory experience, has joined Troutman Pepper’s Washington D.C. office.
Today, a divided Federal Deposit Insurance Corporation’s (FDIC) Board of Directors issued a proposed Statement of Policy (SOP) on bank merger transactions that would create a combined bank with more than $100 billion in assets. The proposed SOP would replace the FDIC’s current SOP on bank merger transactions and proposes a principles-based overview that describes
On January 29, the Office of the Comptroller of the Currency (OCC) issued a notice of proposed rulemaking regarding its review of business combinations under the Bank Merger Act (BMA). Specifically, the OCC proposed: (i) amendments to 12 C.F.R. § 5.33 to remove provisions related to expedited review and the use of streamlined business combination applications subject to BMA review; and (ii) the adoption of an official policy statement setting forth general principles the OCC will use in its review of applications subject to the BMA. If adopted as proposed, the rulemaking will likely lead to longer approval timelines for certain national bank transactions, particularly for mergers involving well-managed, well-capitalized community banks, internal corporate reorganizations, and branch acquisitions that would have otherwise been able to take advantage of expedited review. Currently, assuming certain criteria are met, a BMA filing that qualifies as a business reorganization eligible for a streamlined application is deemed approved on the 15th day after the close of the comment period, unless the OCC notifies the applicant that the filing is not eligible for expedited review or the expedited review process is extended. However, if the rulemaking is adopted as proposed, § 5.33 would be amended to remove the procedures for expedited review and the use of streamlined applications.
Understanding the complex interplay between successor liability and bankruptcy law is crucial for creditors seeking to recover debts. In this article in our Creditor’s Toolkit series, we dissect the nuances of Section 363(f) of the Bankruptcy Code, which typically exempts bankruptcy sales from successor liability, while also shedding light on the exceptions to this rule.
Troutman Pepper has been recognized for its exceptional work in the field of Banking & Finance and Financial Services Law in the 14th edition of Best Law Firms®. Our firm’s National Tier 1 rankings include Banking and Finance Law, Financial Services Regulation Law and Banking & Finance Litigation.
RICHMOND, Va. – Troutman Pepper client Burke & Herbert Financial Services Corp. and Summit Financial Group Inc. recently announced they have entered into a definitive agreement under which Summit will merge with and into Burke & Herbert in an all-stock merger of equals. Read a company press release about the transaction.