Fifteen U.S. bank M&A deals were announced in July for an aggregate deal value of $457.5 million, according to S&P Global Market Intelligence data.
The median deal value-to-tangible common equity ratio for deals announced in 2022 rose to 154.3%, eclipsing full-year 2021's 152.8% and 2020's 136.3%, and just below 2019's 156.0%.
Total deal value year-to-date through the first seven months of 2022 was $17.58 billion, down from $38.59 billion over the same period in 2021.
* Access a list of pending and completed M&A deals announced since Jan. 1, 2012.
* Access the S&P Capital IQ Pro M&A summary page for U.S. financial institutions.
* Read more M&A news.
Texas, Illinois remain popular
On July 27, Hattiesburg, Miss.-based First Bancshares Inc. announced it would acquire Jonesboro, Ga.-based Heritage Southeast Bancorp. Inc. for $207.5 million at a deal value-to-tangible common equity ratio of 178.8%. This was First Bancshares' second deal announcement in three months, following its acquisition of Fort Walton Beach, Fla.-based Beach Bancorp Inc., which was announced April 26 and closed Aug. 1.
On July 26, Elk City, Okla.-based Great Plains Bancshares Inc. announced it would acquire Southlake, Texas-based Providence Bancshares Corp., making it the ninth Texas-based bank target this year, the second-most of any state in 2022.
On July 20, private investor Greg Kidd agreed to acquire Herscher, Ill.-based State Bank of Herscher, making it the 13th Illinois-based deal of the year.
July deal among top 10 most expensive deals announced since 2021
On July 27, Manitowoc, Wis.-based Bank First Corp. announced its acquisition of in-state peer Fond du Lac-based Hometown Bancorp Ltd. for $123.9 million at a deal value-to-tangible common equity ratio of 210.9%, making it the seventh-most expensive deal announced since Jan. 1, 2021.
M&A activity may rekindle
Despite rising inflation, interest rate hikes and a slide in the stock market, banks are still not closing the door on M&A.