Bank M&A slowed sharply year over year in the first four months of 2023. Eight transactions were added in April with an aggregate value of $102.7 million, according to S&P Global Market Intelligence data & analysis.
S&P Bank M&A 2023 Deals Slowdown
Key highlights from the analysis include:
- In the year through April 30, 28 US bank M&A deals were announced — less than half the total announced over the same period in 2022. The aggregate disclosed deal value fell to $535.5 million from $2.00 billion.
- The median deal value-to-tangible common equity ratio for bank deals announced in the first four months of 2023 was 132.3%. That marks the lowest valuation level since the third quarter of 2020.
- Of the 28 deals announced year to date through April, 16 had targets headquartered in the Midwest region. Illinois had five target banks, making it the most-targeted state in the US. Arizona banks were targeted twice, pushing the total number of targets in the West in 2023 thus far to five.
