Data released today from SNL Financial provides an interesting snapshot of the M&A landscape since January 1, 2014:
“For 2015, as of April 15, SNL counted 75 deal announcements in the banking sector with an aggregate disclosed deal value of $8.39 billion and a median price-to-tangible book ratio of 141.84%. During the same period in 2014, the sector saw 66 deal announcements with an aggregate disclosed deal value of $2.92 billion and a median price-to-tangible book ratio of 137.62%.”
As the Federal Reserve Bank of Cleveland recently noted “It’s a trend that’s reflected in changing bank signage across the country—and a story aggregate data also tell.” For smaller banks, mergers and acquisition can help ease regulatory burden and create economies of scale…a fact that has clearly accelerated the pace of industry consolidation.
