A regional view of bank M&A
While industry consolidation picked up in 2017, certain regions of the country were humming along better than others, with strong volume and improved pricing.
Overall, the total number of bank mergers increased by roughly 6% from a year earlier, to 256, according to data compiled by Keefe, Bruyette & Woods and S&P Global Market Intelligence. The total value of those transactions rose more than 3%, to $26.2 billion, based on deals where pricing was disclosed.
Much of the merger activity between banks took place early in the year after the 2016 presidential election triggered a remarkable surge in stock prices. Banks such as Sterling Bancorp, Pinnacle Financial Partners and Iberiabank announced large deals in the first quarter; all of the year's 10 biggest deals were inked by late July.
Some parts of the country clearly had more consolidation than others. For instance, deals announced across the Southeast accounted for nearly half of the industry's total volume in 2017. The region was also home to seven of the year's 10 biggest bank mergers. The Midwest, meanwhile, had the most deals, though many of them involved smaller institutions.
For those curious about 2018 so far, activity has been relatively slow with just 48 deals announced and none with a value above $1 billion. The Midwest has accounted for more than half of the year’s bank mergers, while the Southeast still has a commanding lead in terms of volume.
Here is a look at the regional trends in bank M&A for 2017.
CORRECTION: An earlier version of this slideshow misstated the name and headquarters city of the bank that Columbia Banking System agreed to buy early last year. It was Pacific Continental in Eugene, Ore.