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A regional bank (~$30B assets) with 230-plus branch locations across the Mid-Atlantic region had acquired a failed bank through an FDIC-assisted acquisition. While the bank had acquired smaller institutions in the past and had some experience, they did not have experience with the FDIC and this acquisition was significantly larger and more complex than previous initiatives.
Although our client had an established playbook for bank acquisition and integration, it did not include any FDIC-assisted acquisition components, leaving them with a gap in expertise. For instance, there were timed deliverables tied to the FDIC Purchase & Assumption (P&A) Agreement that the bank had never executed before, and they were not adequately staffed to support the work. In addition, their existing testing methodologies, test cases and test environment were insufficient for an acquisition of this size and complexity. Finally, the siloed organizational structure hindered effective cross-functional communication, leading to missed dependencies and requirements.
We delivered strategic advisory and other services to help our client integrate and convert the acquired bank and meet the additional FDIC requirements outlined in the P&A Agreement. Our work included providing guidance in executing the integration, along with additional resources to augment the bank’s functional teams. In addition, we provided technology enablement services related to testing, test management and mock conversion; data mapping support for core, lending and treasury management system conversion; remediation and validation of audit gaps; and a governance and controls review and assessment for key business areas.
Leveraging SolomonEdwards’ decades of experience with bank integrations and conversions, the bank was able to execute the core integration and conversion in six months with minimal customer and business impacts. Our expertise in FDIC-assisted acquisitions ensured the bank met the conditions of the P&A Agreement while effectively managing risk and converting the bank within the established timeframes. Our support also ensured the bank met its customer retention target.