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Bank M&A Q4'16 scoreboard

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Bank M&A Q4'16 scoreboard

U.S. bank and thrift deal activity increased slightly in the fourth quarter of 2016 compared to the previous quarter, but the overall number of deals for the year declined 15.4% from 2015.

There were 61 deals in the fourth quarter with an aggregate deal value of $5.51 billion. For full year 2016, there were 247 deals with an aggregate deal value of $25.32 billion.

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Canadian Imperial Bank of Commerce's $3.8 billion planned acquisition of PrivateBancorp Inc. was the largest deal announcement in 2016. PrivateBancorp Inc. management reiterated its commitment to the company's pending acquisition. In a Form 8-K, filed Jan. 18, company President and CEO Larry Richman stated, "[W]e continue to work toward the successful completion of our proposed merger with CIBC. The long-term strategic benefits of the transaction remain compelling."

Among deals valued at greater than or equal to $25 million, F.N.B. Corp.'s planned acquisition of Yadkin Financial Corp. was the most expensive deal announced since Jan. 1, 2016, in terms of price to tangible book value. The transaction, which was disclosed July 21, 2016, had a price to tangible book value of 231.7%. Shareholders of both Pittsburgh-based F.N.B. Corp. and Raleigh, N.C.-based Yadkin Financial Corp. have approved the two companies' pending merger. The deal, which is set to close during the first quarter of 2017, has also received approval from the North Carolina Commissioner of Banks.

The median price to book had been growing since 2012, until 2016 when it declined from 134.8% to 129.6%.

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A total of 15 branch deals were announced in the fourth quarter of 2016 that involved 32 branches with an aggregate deposit value of $1.98 billion. For the year 2016, S&P Global Market Intelligence counted 56 bank & thrift branch deals consisting of 121 branches and $5.86 billion in deposits, compared to 87 deals in 2015, involving 272 branches and $9.7 billion in deposits.

Announced Dec. 30, the acquisition of Bank Hapoalim BM's 2 branches by SNBNY Holdings Ltd. had deposits valued at $687 million and was the largest branch deal of the quarter.

Hancock Holding Co.'s acquistion of 9 First NBC Bank Holding Co. branches involving deposits of $511 million was the second-largest branch deal of the quarter.

The Midwest region was the most active region for bank M&A in the fourth quarter, with 28 whole bank and thrift deals with an aggregate disclosed deal value of $1.80 billion.

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