9 Nov, 2021
Bank M&A 2021 Deal Tracker: 2 October megadeals send 2021 deal value above $58B
By Ali Shayan Sikander and Zuhaib Gull
U.S. bank M&A deal value has already surpassed 2019's full-year level and has become the biggest year for U.S. bank M&A since 2007.
As of Nov. 3, 16 deals have been announced since the beginning of October for a combined value of $6.63 billion, driving 2021's total to $58.58 billion.
The median deal value-to-tangible common equity ratio for 2021 deal announcements rose to 152.5%, up from 136.3% for all of 2020.
On Oct. 20, St. Petersburg, Fla.-based Raymond James Financial Inc. announced it would acquire Pittsburgh-based TriState Capital Holdings Inc. in a cash-and-stock transaction worth $1.14 billion at a deal value-to-tangible common equity ratio of 185.5%. The transaction is the 12th-largest and 10th-most expensive deal of 2021, through Nov. 3. TriState's stock has gained 35% since the announcement.
The deal was also the 20th deal of 2021 with a deal value of over $500 million, just the fourth time megadeal announcements have breached 20 on an annual basis, since S&P Global Market Intelligence records began.
On Oct. 12, Portland, Ore.-based Umpqua Holdings Corp. and Tacoma, Wash.-based Columbia Banking System Inc. agreed to merge in an all-stock transaction worth $5.15 billion, making the deal the fourth-largest announcement of the year. However, market reaction has been mixed as investors question the deal's structure.
On Oct. 25, North Liberty, Iowa-based GreenState CU announced it would acquire Freeport, Ill.-based Midwest Community Bank, the credit union's third banking acquisition this year. GreenState now also has the most bank acquisitions of any credit union.
Click here for a list of pending and completed M&A deals announced since Jan. 1, 2011.
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