After two years in the doldrums, the M&A market is thawing. Around 95 banks have already agreed to be sold this year, which is set to exceed last year's total, and around 40% of respondents to a recent S&P survey on the banking outlook said they were "somewhat" or "very likely" to pursue an acquisition in the next 12 months.
Paul Davis, publisher of the Bank Slate, believes many of those deals could be larger and "more significant." He also discusses why banks wanting to do a deal should raise capital now, why buyers are becoming more selective, and that regulatory thresholds are encouraging more institutions to sell.
Be sure to read why Fitch believes M&A activity among community banks will accelerate into next year, and check out this report from Deloitte on the banking and capital markets outlook for 2025.
Is deal activity picking up in your markets? When considering deals, how big a factor is the time required to obtain regulatory approvals? Any additional thoughts or reactions?
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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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