NEW YORK ( TheStreet) -- It looks like private equity is becoming more aggressive about pursuing acquisitions in the financial industry. Community Bancorp LLC's outbidding of Trustmark (TRMK) for Cadence Financial (CADE) is the most recent example.
Several small community and regional banks have been rumored to be targets of private equity investment or acquisitions. So we have compiled a list of banks that will likely be targets for investments by private equity. We selected the largest bank holding companies to post net losses for both the first and second quarters of 2010, leaving out Flagstar Bancorp (FBC) and Pacific Capital Bancorp (PCBC) because these companies have already received very significant capital infusions from private equity firms.
"This is a good list of banks. These are all banks that all have credit issues and need capital," Jones Day partner Chip MacDonald said of our top 10 acquisition targets.
"All of these franchises have attributes of good market share in good markets and that makes them potentially attractive to buyers," said Jeff Davis, a managing director with Guggenheim Partners LLC. "All of these could be sellers. M&A can be the icing on the cake, but investors should never buy a bank stock based on bank stock takeover valuation though."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV