U.S. banks and thrifts announced 11 deals in October, marking the first three-month stretch of 2020 in which deal announcements hit double figures.
During the first 10 months of this year, the industry saw 92 deal announcements worth an aggregate $9.97 billion, compared to 219 deals worth $49.02 billion over the same period in 2019. The median deal value to tangible common equity ratio for deals announced in 2020 was 131.7%, down from 158.1% in all of 2019.
On Oct. 16, Raleigh, N.C.-based First Citizens BancShares Inc. and New York-based CIT Group Inc. entered into a definitive agreement to combine in an all-stock merger of equals. The deal is valued at $2.16 billion, making it the second-largest deal of 2020. However, with a deal value to tangible common equity ratio of 43.9%, it is not only the cheapest bank and thrift deal of 2020 — it is also the least expensive merger of equals since 2008.
Click here for a list of pending and completed M&A deals announced since Jan. 1, 2010.