Pricing reveals mid-size banks as strongest
Call it the banking sweet spot.
Mid-sized banks — locally those with a few billion dollars in assets — are best positioned to shift the banking business in Nashville and the Southeast, according to data and growing sentiments among industry experts. And Nashville has its own stable of such banks that could surge forward, if they can capitalize.
“We just think that we’re in a good crossroads here; Nashville’s a great place to be a banker,” said Harold Carpenter, chief financial officer of Pinnacle Financial Partners. “We’re on offense.”
At $4.8 billion in assets, the Nashville holding company’s bank falls within what more experts are saying is the right size for the current environment. Data in recent months showing what banks in the Southeast can fetch in a sale — one measure of what investors view as the most viable type of bank — has those with assets of between $1 billion and $10 billion coming out on top for their size.
The upshot: Banks that surge forward in the sluggish economy will be the most viable sources of money for businesses.