S&P Bank M&A 2024 Deal Tracker: Largest deal of 2024 announced in April

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HFA Staff
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US bank M&A got a boost in the second quarter with the largest deal announced so far in 2024.

On April 15, Rosemont, Ill.-based Wintrust Financial Corp. announced the acquisition of Holland, Mich.-based Macatawa Bank Corp. for $512.4 million. The deal, with a deal value-to-tangible common equity ratio of 177.7%, marks the third-largest and the second-most expensive US bank M&A deal announced since the beginning of 2023, according to S&P Global Market Intelligence data.

A total of 28 US bank deals worth a combined $1.59 billion were announced in 2024 through April 15.

The first quarter had 26 bank deals with an aggregate deal value of $1.08 billion. By comparison, there were 20 bank deals worth a total $432.8 million announced over the same period in 2023.

Washington the most-targeted state

Bank M&A in Washington State is gaining momentum with four bank targets so far in 2024, making it the most-targeted state. The state’s deal count through mid-April was already higher than the annual deal counts in every year since 2018.

On March 11, Tacoma, Wash.-based Sound CU announced it would acquire Olympia, Wash.-based Washington Business Bank for $25.9 million, with a deal value-to-tangible common equity ratio of 165.8%. The deal was the fourth-most expensive US bank deal announced since the start of 2023.

In another deal in which a Washington-based bank was targeted by a credit union, Lakewood, Wash.-based Harborstone CU announced its planned acquisition of Burlington, Wash.-based SaviBank on March 22.

Harborstone CU and Sound CU have been Washington’s most active credit union buyers, accounting for four of the state’s five credit union bank acquisitions since 2015.

Banks targeted in the Southeast

On March 28, Rockville, Md.-based Capital Bancorp Inc. announced the acquisition of Raleigh, NC-based Integrated Financial Holdings Inc. for $67.7 million. The deal was the fifth-largest US bank M&A deal announced so far in 2024 and the 18th largest since 2023.

Virginia was targeted for the second time in 2024 with Strasburg, Va.-based First National Corporation’s announced acquisition of Prince George, Va.-based Touchstone Bankshares Inc. on March 25, with a deal value of $47.0 million.

Regulatory scrutiny to weigh down on US bank M&A

In a policy statement released March 21, the Federal Deposit Insurance Corp. codified the factors it intends to use when evaluating bank mergers and laid out steps for increased transparency.

Federal Reserve Governor Michelle Bowman and a number of industry experts believe that the agency’s proposed changes will create more confusion and will likely further slow bank M&A activity and prolong closing timelines.

Daniel Tarullo and Jeremy Stein, two former Democratic Federal Reserve governors, are encouraging current regulators to be more open to M&A, especially with deals involving midsize regionals and smaller banks.

Kate Smith

Public Relations Director

S&P Global | Market Intelligence

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The post above is drafted by the collaboration of the Hedge Fund Alpha Team.