Community Banks engaging in M&A?
Today I saw this article about a community bank acquiring a PWM firm
Meridian Bank is jumping deeper into the financial advice business with the planned acquisition of HJ Wealth Management, which will more than triple the community bank's assets under management to $700 million.HJ Wealth Management, based in Plymouth Meeting, Pa., will fold its $500 million under management into the community bank's newly created Meridian Wealth Partners, according to Christopher Annas, the bank's chairman and chief executive.
Mr. Annas, who founded the Malvern-based bank in 2004, had until recently focused on growing the bank's mortgage business, which includes 15 loan production offices and 125 loan officers that originated nearly $900 million worth of mortgages last year.
The Meridian deal is the latest by a community or regional bank looking to diversify income streams by building a solid financial planning arm. In September Salem Five Bank, based in Salem, Mass., acquired Stumm Financial Services.
I know that some boutique IBs specialize in community banks buying other community banks, but this seems interesting because the community bank is buying a PWM firm, not another bank.
Have any of you seen this type of deal in the past? How often does this occur? Do you think this will become a trend going forward?