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Bank M&A 2021 Deal Tracker: USB's acquisition sends 2021 deal value over $50B

U.S. bank M&A activity jumped in late September as four deals worth over $500 million were announced, sending 2021 set a new record

Nineteen deals were announced last month for an aggregate deal value of $12.46 billion sending 2021's total value to $51.92 billion year to date, compared to $27.84 billion for full-year 2020 and $55.03 billion in 2019, which included the blockbuster $28.28 billion merger-of-equals between SunTrust Banks Inc. and BB&T Corp. to form Truist Financial Corp. Before 2019, the last time U.S. bank M&A activity breached $50 billion in deal value was 2007.

The median deal value-to-tangible common equity ratio for 2021 deals rose to 152.5%, up from 134.8% for all of 2020.

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On Sept. 23, New York-based Valley National Bancorp announced that it would acquire fellow New York-based Bank Leumi Le-Israel Corp. for $1.14 billion at a deal value-to-tangible common equity ratio of 130.8%. Valley National's stock price rose 6.9% as on the announcement date. This is also Valley's second deal announcement in less than 3 months.

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On Sept. 21, U.S. Bancorp announced the largest deal of the year with its acquisition of MUFG Union Bank NA for $7.97 billion at a deal value-to-tangible common equity ratio of 127.5%. The acquisition is the largest deal in U.S. Bancorp's history, as its share price has risen handsomely 6.4% from Sept. 21 through Oct. 1. The deal is the fourth largest in the industry since 2009.

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On Sept. 16, Billings, Mont.-based First Interstate BancSystem Inc. announced its acquisition of Great Western Bancorp Inc. for $1.97 billion at a deal value-to-tangible common equity ratio of 170.0%, though investors were on the fence with concerns about credit quality popping up.

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Click here for a list of pending and completed M&A deals announced since Jan. 1, 2011.

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