That explains why bank merger activity is down and expected to stay down.

Potential acquirees are demanding prices based on last year's substantially higher stock values. And acquirers are reluctant to meet those demands, which would require paying out more shares for acquisitions, diluting the investments of existing shareholders.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.