Loan Growth Steady as Bank M&A Slowly Rebounds

U.S. banks ended the third quarter with steady loan growth, rising 4.2% year over year as of late September, according to Federal Reserve data cited by S&P Global Market Intelligence. That’s up from 3.5% at the end of the second quarter and 2.2% last December. Lending has now improved for six consecutive quarters even as borrowers remain cautious amid tariffs and await lower rates, Raymond James analysts noted.

A separate S&P article found that, after years of restraint, banks are showing renewed willingness to pay more for acquisitions, though deal valuations remain below pre-pandemic norms.