Sure Sign of Durbin's Impact: Increased M&A of Community Banks

Posted on Jan 17, 2014 4:44:00 PM by Scott Songer

Heartland Financial's acquisition late last year of Illinois-based Freedom Bank is a likely result of the increased pressures on mid-sized regional banks in this ongoing low-interest environment. The implementation of the Durbin Amendment and other regulatory restrictions on banks has significantly impacted the ability of regional banks to earn income on payment products.  

My take? Additional consolidation is highly likely over the next several years, as financial institutions look for ways to make up for this lost loan servicing and swipe fee revenue, and seek economies of scale in their lending and payments businesses.


Topics: Durbin Amendment