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Bank M&A Deal Volume, Pricing Remains Steady

July 13th, 2012 |

Bank mergers and acquisition deals have remained at a steady pace so far in 2012, with 108 deals announced through July 9 having an aggregate deal value of $5.28 billion, according to SNL Financial.

The median price to tangible book value in the second quarter was 110.7 percent, compared to 116.3 percent in the first quarter, and 109 percent in the second quarter of last year.

In 2011, the median price to tangible book value was 106 percent and in 2010, it was 116 percent.

Federal Deposit Insurance Corp.-assisted deals were excluded from the figures.

In 2011, there were 177 transactions announced with a total deal value of $17 billion, compared to 215 deals in 2010 valued at $12.3 billion, according to SNL.

Other trends:

Since Jan 1, 2011, the Midwest has been the most active region for bank M&A, with 76 deals announced, followed by the Southeast, with 53.

The largest bank deal since Jan. 1, 2010, was McLean, Va.-based Capital One Financial Corp.'s June 16, 2011, agreement to buy Wilmington, Del.-based ING Bank FSB for $9 billion, representing 102.2 percent of the target's tangible book. This also marks the largest bank deal since 2008, when Wells Fargo & Co. acquired Wachovia Corp. for $15.1 billion. 

SNL Financial collects, standardizes and disseminates all relevant corporate, financial, market and M&A data — plus news and analysis — for the industries we cover: banking, financial services, insurance, real estate, energy and media/communications.

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