Bank M&A Deal Tracker: 4th billion-dollar deal of 2024 announced in October

October brought the fourth $1 billion-plus US bank deal of 2024 as Glen Allen, Virginia-based Atlantic Union Bankshares Corp. announced that it would acquire Olney, Maryland-based Sandy Spring Bancorp Inc. for $1.60 billion. It is the year's third-largest deal overall.

On April 1, Atlantic Union closed its purchase of Danville, Virginia-based American National Bankshares Inc., which was the third-largest US bank deal announced in 2023, according to S&P Global Market Intelligence data.

There were 108 US bank deals worth an aggregate deal value of $13.07 billion announced in 2024 through Oct. 31, surpassing the total deal value of $8.95 billion from 155 deal announcements and $4.15 billion from 98 bank deal announcements in all of 2022 and 2023, respectively.

3 CU-bank deals announced in October

Of the 14 deals announced in October, three involved credit union buyers.

On Oct. 23, Oak Ridge, Tennessee-based Y-12 FCU announced the acquisition of Middlesboro, Kentucky-based First State Bank of the Southeast Inc. in a deal expected to close in early 2025.

Phoenix-based OneAZ CU's acquisition of Yuma, Arizona-based 1st Bank Yuma and Richland, Washington-based HAPO Community CU's planned acquisition of Kennewick, Washington-based Community First Bank were announced within five days of each other, on Oct. 3 and Oct. 8, respectively. Neither of the two bank targets was for sale before receiving letters of intent that their boards deemed too good to refuse.

Midwest remains most-targeted region, followed by the Southeast

Forty-two banks in the Midwest have been targeted so far in 2024, making it the most targeted region.

On Oct. 23, Griggsville, Illinois-based Griggsville Bancshares Inc. announced the acquisition of Bluffs, Illinois-based Scott Morgan Bancorp Inc. It was the state's ninth bank target in 2024, making it the most targeted state in the country.

Meanwhile, 21 banks headquartered in the Southeast were targeted in the year through Oct. 31, making it the second-most targeted region.

On Oct. 9, Georgia Banking Co. announced the acquisition of Atlanta-based Primary Bancshares Corp for $27.0 million. The transaction's deal value-to-tangible common equity ratio of 137.6% made it the 16th-most expensive US bank M&A deal announced this year.

Banks targeted in Texas

A total of eight Texas-based bank targets were announced so far in 2024, making it the second-most targeted state.

On Oct. 16, Jacksonville, Texas-based Austin BanCorp Inc. announced the acquisition of Houston-based Chasewood Bank. The following day, Liberty, Texas-based First Liberty National Bancshares Inc. announced the acquisition of two Coastal Bancshares Inc. subsidiaries — Pearland, Texas-based Pearland State Bank and Alvin, Texas-based First National Bank of Alvin.

– Access a list of pending and completed M&A deals announced since Jan. 1, 2014. – Access the S&P Capital IQ Pro M&A summary page for US financial institutions. – Read more M&A news.

According to S&P Global Market Intelligence's third-quarter US Bank Outlook Survey, 33.3% of respondents indicated that that their institution was either "somewhat" or "very" likely to pursue acquiring another company over the next 12 months, compared to 39.5% in the second quarter. The proportion of bankers who thought their institution was likely to sell increased to 12.6% from 7.9%.

Regulatory and compliance changes were the main concerns for bankers regarding the outcome of the 2024 US presidential election.

Several executives said they would prefer clarity on future regulatory dynamics before taking a plunge on bank M&A.