trending Market Intelligence /marketintelligence/en/news-insights/trending/YNDw6tWbipfbxTClW_1Ohg2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Community banks seeing higher prices in M&A market

Street Talk Episode 68 - As many investors zig away from bank stocks, 2 vets in the space zag toward them

Street Talk Episode 66 - Community banks tap the debt markets while the getting is good

Street Talk Episode 67 - Veteran investor tabs Mick Mulvaney to help with latest financial stock-focused fund

Street Talk Episode 65 - Deferral practices trap US bank portfolios in purgatory


Community banks seeing higher prices in M&A market

Although community banks appear eager to continue exploring M&A opportunities, executives at the KBW Community Bank Investor Conference said Aug. 1 and Aug. 2 that higher stock prices are making it hard to find an attractive deal.

Banks have seen their stocks rise since the U.S. election. As of Aug. 1, the SNL U.S. Bank Index had risen 28.64% since Election Day, Nov. 8. The boost in equities makes it more expensive for companies looking to make a deal. David Zalman, Chairman and CEO of Houston-based Prosperity Bancshares Inc., said M&A is "vital" but difficult to pull off when $2 billion banks are trading at 24x earnings.

"It has become harder," Zalman told investors and bankers Aug. 1.

Some say the M&A environment is particularly challenging among smaller targets.

"There are less and less $200 million potential partners," James Ford, President and CEO of Fresno, Calif.-based Central Valley Community Bancorp, said Aug. 2. At Houston-based Green Bancorp Inc., Chairman and CEO Manuel Mehos said Aug. 1 he likely won't chase any small deals for now, preferring to prioritize organic growth over scale.

But finding a small partner didn't appear to be an issue for Novato, Calif.-based Bank of Marin Bancorp, which announced July 31 its acquisition of Napa, Calif.-based Bank of Napa NA, with $246.0 million in total assets. Colombo said Aug. 1 at the KBW conference that the deal was attractive because of immediate accretion to earnings per share and new opportunities to lend to the wine industry in the Napa Valley.

"It will allow our team to have much greater exposure in the market," President and CEO Russell Colombo said.

Some companies with an appetite for acquisition say the stock bump is actually advantageous to M&A plays. At Oak Ridge, N.J.-based Lakeland Bancorp Inc., President and CEO Thomas Shara Jr. said a 2.08x price-to-tangible book value gives the bank stronger currency in potential stock deals.

"We do have the opportunity to buy some things should they become available," Shara said, adding that the company has been very selective and has turned down about 30 deals.

Olney, Md.-based Sandy Spring Bancorp Inc. is set to use its stock in a $499.6 million deal to acquire WashingtonFirst Bankshares Inc. Sandy Spring President, CEO and Director Daniel Schrider acknowledged that the closing price ratcheted up during competitive bidding, but the deal was ultimately awarded to Sandy Spring with the help of the company's higher stock price.

"Where we were trading at the end of the quarter, provided that currency, we were less focused on what the ultimate multiple was," Schrider said.