Consolidation in the banking industry remains cool compared with a year earlier.

Banks announced 41 mergers through May 31, representing a 16% decline from the same period in 2015, according to data from Keefe, Bruyette & Woods and S&P Global Market Intelligence. Industry observers have pointed to sluggish stock prices and uncertainty in the energy sector as reasons for the slowdown.

The average deal value this year has been $67 million, compared with $143 million a year earlier. The results were skewed because of Royal Bank of Canada's agreement to buy City National last year for $5.3 billion; absent that deal, the average for the first five months of 2015 would have been $64.3 billion.

Two deals announced this year — Huntington Bancshares' proposed purchase of FirstMerit and Chemical Financial's planned acquisition of Talmer Bancorp — have overall values that exceed $1 billion.

Valuations have changed very little. Through May 31, deals have priced at an average of 138.3% of tangible equity. The 49 deals announced over the same period in 2015 had an average price equal to 136.5% of tangible equity.

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