Bank M&A 2017 Deal Tracker -- Fewer deals, but pricing keeps strengthening

Abstract

Through July 31, S&P Global Market Intelligence counted 143 deal announcements in the U.S. banking sector with an aggregate disclosed deal value of $19.82 billion and a median deal value-to-tangible common equity ratio of 161.50%. Cincinnati-based First Financial Bancorp. the parent of First Financial Bank has agreed to acquire Greensburg, Ind.-based MainSource Financial Group Inc. Disclosed on July 25, SNL values the $1.00 billion deal at 266.4% of the target's tangible book value.

This Data Dispatch will be updated throughout 2017 to tally deal activity in the U.S. bank and thrift sector. Click here to run a report summarizing M&A activity by industry. Click here for a spreadsheet listing all bank and thrift deals, including institution keys, since Jan. 1, 2008.

Through July 31, S&P Global Market Intelligence counted 143 deal announcements in the U.S. banking sector with an aggregate disclosed deal value of $19.82 billion and a median deal value-to-tangible common equity ratio of 161.50%. The comparable prior-year period saw 152 deal announcements with an aggregate disclosed deal value of $17.05 billion and a median deal value-to-tangible common equity ratio of 126.13%.

The full year 2016 had 241 deal announcements with an aggregate disclosed deal value of $26.83 billion and a median deal value-to-tangible common equity ratio of 130.61%.

Deals announced since July 1, with disclosed deal values of $500 million or greater in the bank and thrift space include:

Cincinnati-based First Financial Bancorp. the parent of First Financial Bank has agreed to acquire Greensburg, Ind.-based MainSource Financial Group Inc. Disclosed on July 25, SNL values the $1.00 billion deal at 266.4% of the target's tangible book value. The deal is expected to be 5.2% accretive in the first year and close in the first quarter of 2018.

Wayne, N.J.-based Valley National Bancorp, the parent of Valley National Bank has agreed to acquire Clearwater, Fla.-based USAmeriBancorp Inc. Announced July 26, SNL calculated a deal value of $815.7 million, representing 246.1% of the target's tangible common equity. As of March 31, the target had total assets $4.23 billion, while Valley National Bank reported total assets of $23.22 billion.