The merger and acquisitions (M&A) activity among the U.S. regional banks is showing signs of a rebound this year following subdued 2023. More regional banks are resorting to M&As to strengthen their balance sheets amid enhanced competitiveness for low-cost deposits.
Per Dealogic data, regional banks with assets between $10 billion and $100 billion have completed 38 deals year to date. This exceeds the 29 deals recorded during the same period last year.
Since last year, the regional banking sector has been under tremendous strain as elevated interest rates reduced borrowing, raised competition for deposits and led to bigger losses on commercial real estate loans.
The banks are now expanding inorganically despite regulatory hurdles.
Per S&P Global Market Intelligence data, year to date through Jul 31, 2024, 67 U.S. bank deals for $9.25 billion were disclosed, exceeding the total deal value of $8.95 billion and $4.15 billion announced in 2022 and 2023, respectively.
3 Largest Banks Deals (in terms of value) Announced in 2024
In May, SouthState Corporation (NYSE: SSB) agreed to buy McKinney, TX-based Independent Bank Group in an all-stock transaction valued at nearly $2.02 billion. This became the biggest M&A deal announced by deal value year to date. Following the acquisition, the combined company will have total assets of nearly $65 billion. With this deal (expected to close ...
