Bank M&A: Few deals, but much drama
The biggest bank merger in more than a decade overshadowed a slowdown in M&A activity in February.
BB&T in Winston-Salem, N.C., and SunTrust Banks in Atlanta shocked the industry when they announced a merger agreement valued at $28 billion.
It immediately fueled speculation that other large deals could be on the horizon. Such questions had already begun last month when Chemical Financial in Detroit and TCF Financial in Wayzata, Minn., announced a merger agreement to form a $45 billion-asset bank.
That excitement aside, just nine bank deals were announced last month, down from 17 in January. Overall activity in the first two months was off more than 25% from a year earlier, based on data compiled by FIG Partners.
Still, there were some other notable deals announced in February. Another credit union agreed to buy a bank, and a few serial acquirers continued their quests for scale. Here are five takeaways from the month’s M&A activity.