Bank Notes: May 2024

Dealmaking activity in the banking industry evidenced a resurgence of sorts in April as twelve transactions were announced over the course of the month. Over a broader arc, the aggregate deal tally year-to-date through April was 30% higher than in the same period in 2023. Similarly, and more profoundly, the aggregate value of announced transactions is 7 times higher in year-to-date 2024 than in the same period last year.

April also saw 2 transactions that were particularly noteworthy: on April 15th, Chicago, IL-based Wintrust Financial ($57.6 billion in assets; NASDAQ: “WFTC”) agreed to acquire Michigan-based Macatawa Bank Corporation ($2.6 billion in assets; NASDAQ: “MCBC”) in an all-stock transaction valued at $512 million. The effective price is subject to a variable exchange ratio (i.e., fixed price) within a collar around Wintrust’s stock price but a fixed ratio (i.e., floating price) beyond both the high and low ends of the collar. Meanwhile, on April 29th, Kansas City, MO-based UMB Financial ($45.3 billion in assets; NASDAQ: “UMBF”) agreed to acquire Colorado-based Heartland Financial USA Inc. ($19.1 billion in assets; NASDAQ: “HTLF”) in an all-stock deal valued at approximately $2.0 billion, UMB’s first whole-bank acquisition in nearly ten years. Both transactions are notable both due to the size and M&A strategies of the respective acquirers as well as for the size and strategic trajectories of the respective sellers. Moreover, given that both acquirers have assets currently or prospectively above $50 billion, both transactions will also provide greater visibility into the current approvability postures of the applicable regulatory bodies related to larger transactions.

Finally, in April, Olsen Palmer served as financial advisor on several transactions across the U.S. (party advised by Olsen Palmer indicated in bold): on April 10th, Mississippi River Bank (Louisiana) was acquired by Merchants & Marine Bank (Mississippi); on April 17th, Johnson County Bank (Tennessee) agreed to be acquired by Skyline National Bank (Virginia); on April 18th, Heritage Bank (Minnesota) agreed to sell 1 branch to Levo Credit Union (South Dakota); and on April 30th, OneSouth Bank (Georgia) was acquired by Five Star Credit Union (Alabama).

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