Bank M&A activity thawed somewhat in June as six whole-bank M&A transactions were announced. While appreciably below historical levels, this was a notable uptick vs. April and May.
Bank Notes: June 2020
Bank Notes: May 2020
Hope, it is said, springs eternal. A particularly poignant sentiment for Spring of 2020 as the U.S. begins a measured re-opening following a months-long lockdown across almost all 50 states. That said, economic damage has undeniably been done: the U.S. unemployment rate spiked to 14.7% in April (on its way higher in May); consumer spending dropped precipitously in March (and likely even further in April); and GDP is on track to decline by more than 30% in Q2.
Bank Notes: April 2020
Bank Notes: March 2020
As it has in most areas of life, change has come with a vengeance to the bank M&A arena. In the wake of the spread of COVID-19, dealmaking has slowed significantly: February saw only 10 whole-bank M&A transactions, the lowest monthly count since the great recession. While a discussion of the public health and political implications of COVID-19 is beyond our scope, we share here an abridged summary of our outlook for bank M&A.