Bank M&A valuations in the third quarter dropped to a level last seen in the first quarter of 2017, as the median deal value-to-tangible common equity ratio for deals announced in the quarter fell to 153.6%.
Meanwhile, 85 deals were announced in the third quarter, the highest tally since the fourth quarter of 2015. Aggregate deal value fell to $6.46 billion, compared to $8.38 billion in the year-ago period.
There were three branch deals announced during the third quarter, the largest being Bar Harbor, Maine-based Bar Harbor Bankshares' planned acquisition of eight branches from Bridgeport, Conn.-based People's United Financial Inc.
CIT Group Inc.'s planned $1.00 billion acquisition of Omaha, Neb.-based Mutual of Omaha Bank was the largest whole-company deal announced in the third quarter and the fifth-largest deal of 2019.
With a deal value equal to 283.4% of the target's common equity, Abilene, Texas-based First Financial Bankshares Inc.'s planned acquisition of Bryan, Texas-based TB&T Bancshares Inc. was the most expensive deal of the quarter and the second-most expensive deal of 2019.