Banker & Tradesman quotes Ken Ehrlich in “The Silver Tsunami”Print PDF
Kenneth F. Ehrlich, co-chair of the Banking and Financial Services practice group, was quoted by Banker & Tradesman in “The Silver Tsunami.” The article discusses how in some cases banks are considering mergers as a means of survival, as boards approach succession planning with baby boomers nearing retirement age. Regulators have emphasized succession planning as a form of risk management in recent years, and this trend, combined with a dearth of emerging talent, has had some impact on mergers and acquisitions−the state Division of Banks approved ten mergers last year. A community bank may find it more advantageous to seek a merger partner, rather than a successor, when dealing with compliance costs, regulatory burden, margin pressures and the impending retirement of its CEO.
“If you looked at the reason for a number of mergers, it’s because the CEO of one institution is retiring and that institution looks out and sees another bank that has a younger CEO whom they have confidence in, and they’re maybe looking to grow through a merger anyway,” said Ken. “There are a number of banks that have solved their management succession issue through a merger.”