September saw the continuation of the steadily accelerating recovery in bank M&A, particularly of transactions in which the seller was below $1 billion in assets. Indeed, a total of 15 whole-bank M&A transactions were announced in September, not far below monthly levels seen pre-COVID. In fact, the same number of deals was seen in September 2020 as in November of 2019.
Pricing discovery, as it were, continues to be limited as only 3 of September’s deals publicized pricing, with price-to-tangible book multiples ranging between ~1.1x to 1.3x.
Also on the rise are branch M&A transactions, of which 7 were announced in September.
Finally, on September 3rd, First Bank of Linden agreed to be acquired by Alabama One and, in a separate transaction, on September 25th, Reynolds State Bank agreed to be acquired by Peoples National Bank. Olsen Palmer LLC served as financial advisor to First Bank of Linden and Reynolds State Bank, respectively. Olsen Palmer remains a top 3 bank M&A advisor nationwide based on the number of whole-bank M&A transactions advised on in 2020 year-to-date, according to S&P Global.
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Note: M&A transaction volume and pricing data per S&P Global.