A snapshot of banking mergers and acquisitions in 2021. The bank has built up a lot of cash with roughly $51.5 billion in total stockholder's equity. Press Release. New York Community Bancorp Inc (NYCB) Q4 2020 Earnings Call Transcript, 1 Bank Stock That Benefits From Low Interest Rates, New York Community Bancorp Inc (NYCB) Q3 2020 Earnings Call Transcript, New York Community Bancorp Inc (NYCB) Q2 2020 Earnings Call Transcript, Copyright, Trademark and Patent Information. Additionally, according to the bank's website, New York Community Bancorp was a very active acquirer between 2007 and 2010 during the Great Recession. Fdic Mergers And Acquisitions List . The question is whether or not the $412 billion asset PNC Bank can find a willing seller that is attractive enough. to become a bank holding company by acquiring Delta Bancshares of Louisiana, Inc., and its wholly owned subsidiary, Commerce Community Bank, both of Oak Grove, Louisiana. 1. Several of those that were announced were ultimately terminated after the pandemic hit. PNC Financial Services. (Photo by Todd Kirkland/Getty Images). The headquarters of First National Bank of Huntsville was a … Can It Accomplish Them? The announcement of the $66 billion merger of BB&T Corp. and SunTrust could spur a wave of combinations for large regional banks. What a surprise, eh? Here are some deals the Fintech Snark Tank would like to see. It excludes goodwill and other intangible assets because they can't be converted into assets of value during a liquidation event. Bank merger volume was down significantly in 2020 from 2019, thanks to the pandemic. KeyCorp, which has $156 billion in assets to PNC's $412 billion, would be a big fish to land. About Regions Bank: Regions Financial Corp. is a large bank and financial services company headquartered in the Regions Center in Birmingham. Average daily volume is less than one-sixth that level. The question is whether People's United, recently trading at a 1.18 tangible book value, will continue with the small buys or hunt for something larger. Want to talk more fintech? This is an encouraging mix and will bring good news for 2021 banking … Regions serves customers across the South, Midwest, and Texas, and through its subsidiary, Regions Bank, operates approximately 1,500 banking offices and 2,000 ATMs. "I think its pretty simple: Look at the stocks that had better price-to-tangible-book valuations and those that don't. Huntington Bancshares ( … Regional banks are likely to be the first to combine as the industry starts to consolidate because regulators are unlikely to allow any major acquisitions among the top-tier banks. The company provides retail and commercial banking, securities brokerage, mortgage as well as insurance products and services. The bank recently traded at 1.27 price-to-tangible-book value. Regions Bank Merger Rumors 2019 PNC's CEO William Demchak didn't deny the rumors either, making it very clear that he would love to pick up a bank while valuations are low, like the bank did in 2008 with its acquisition of National City Corp. Trading at a price-to-tangible-book valuation of 1.35 as of June 1, PNC has a very valuable currency right now. That's according to Tom Michaud, president and CEO of Keefe, Bruyette & Woods (KBW), a bank research firm and investment bank that advised on two-thirds of the largest bank mergers last year. Regions Bank Merger News Today . I have been a little concerned about M&T Bank Corporation (NYSE:MTB), given that the Buffalo-based bank does a lot of business in markets like New York that were hit very hard by the coronavirus. But this is an incredibly well-run bank that has been very efficient and delivered strong returns in recent years, and the investing community appears to have strong confidence in the company. An acquisition of Memphis-based Union Planters in 2004 was followed by a merger with cross-town rival AmSouth in 2006. This could take some time, but there have already been a number of banks thrown out as potential acquisition candidates. With a P/TBV of 0.77 as of Wednesday morning, it's at the lower end of large regional banks. Ron Shevlin is the Managing Director of Fintech Research at Cornerstone Advisors, where he publishes commissioned research reports on fintech trends and advises both. URL Copied; Al Arabiya English. There has been a lot of talk that 2021 could be a big year for bank mergers and acquisitions (M&A), possibly making up for the lack of deals in 2020. New York Community Bancorp Has Big Transformation Plans. If U.S. Bancorp does make a play, expect it to be fairly significant. The 12 Most Important Mobile Banking Features (And Why No Bank Can Have Them All), Lindsay Lohan On Why NFTs Are Destined For Hollywood, BIS Innovation Hub Sets The Pace For Central Banking Digital Innovation, Cross-Border Ecommerce: Three Challenges Defining The Next Decade, Gamification, AR, And Giveaways: How China Is Upleveling The Live Commerce Experience. Published: 01 April ,2021… Regions to Announce First Quarter 2021 Financial Results on April 23, 2021 Mar 24, 2021 Regions Bank Earns Gallup’s Highest Workplace Honor a Seventh Consecutive Year As soon as Congress passed the bill, the bank pounced. (Photo by Todd Kirkland/Getty Images), Digital Transformation In Banking: Banks Have A Long, Long Way To Go. Contact information: Toll Free: 1 (800) 734-4667 More information: None Our US bank mergers and acquisitions table below allows you to sort, print and export the relevant merger activity. "I wouldn't expect us to enter a new market with a small depository acquisition, given our other opportunities to do that," U.S. Bancorp President and CEO Andrew Cecere said on an earnings call in July of 2019. In early March on the eve of the coronavirus, after a six-year hiatus from bank acquisitions, U.S. Bancorp essentially acquired State Farm Bank's existing deposit and credit card accounts, as the insurance firm looks to exit banking . Regional banks are trading at an average of 1.1 times tangible book value, well below their seven-year average of 1.4 times. © 2021 Forbes Media LLC. Stock Advisor launched in February of 2002. Bank Merger Rumors 2019 . Let me know—I might add them here. Chemical Financial Corp. and TCF Financial Corp. kicked off the year, the merger between BB&T and SunTrust to become Truist Financial Corp. was the biggest bank … U.S. Bancorp (NYSE:USB) is perhaps the largest bank technically in the regional space with roughly $542 billion in total assets. At the time, People's United was larger than $40 billion in assets, but many suspected it was delaying significant growth because it didn't want to cross the $50 billion mark and deal with the enhanced regulation. Additional information about Regions and its full line of products and services can be found at www.regions.com . But I am very confident that this bank will continue making acquisitions once conditions settle. The combination of these two major bank holding companies into the new Regions was the last major unforced financial transaction in the United States before the Great Recession started to show signs beginning in 2007. Opinions expressed by Forbes Contributors are their own. In 2018, Congress passed the Economic Growth, Regulatory Relief and Consumer Protection Act, rolling back portions of the Dodd-Frank Act. Will That Be Cash, Charge Or Personal Data? Last time several regional banks tried to do big deals, their investors weren’t always on board. After a year of unprecedented upheaval, economic disruption, and political uncertainty, we’re beginning to see the light at the end of the tunnel. Bank merger volume was down significantly in 2020 from 2019. Some of the larger community banks in its market, which is largely the Northeast, have run into a bit of trouble. Today's Regions. Prior to The Motley Fool, he wrote about and covered community and regional banks in New England for The Warren Group. But there are a lot of reasons 2021 might be. After selling its entire stake in BlackRock and putting even more cash in its coffers, PNC Financial Services (NYSE:PNC) became the most obvious bank that will look to make a move. Huntington's trailing price to book ratio is 1.31, which is 22% below the Midwestern regional banking industry's average of 1.68. Powell told Congress on Wednesday, Feb. 24, 2021, that the central bank will not begin raising interest rates until the Fed believes it has reached … Here are five large regional banks well-positioned to make a move. What does 2021 hold in store? Returns as of 04/06/2021. 2021-02-20: Bank of Hamilton: ND: Discontinued: Pooling: KodaBank: ND: 2021-02-20: First Bank of Muleshoe: TX: Discontinued: Purchase: Happy State Bank: TX: 2021-02-20: Inez Deposit Bank: KY: Discontinued: Purchase: First State Bank: OH: 2021-02-20: Main Street Bank: MI: Discontinued: Pooling: Superior National Bank & Trust Company: MI: 2021-02-06: Islanders Bank: WA: Discontinued: Pooling: Banner Bank… 1. In the last two years, People's United has purchased the $3 billion asset First Connecticut Bancorp, the $3 billion asset BSB Bancorp, and the $7 billion United Financial Bancorp. Synovus only reported a profit of $38.5 million in the first quarter, down 68% year over year. The median deal value to tangible common equity ratio for deals announced in 2020 was 130.7%, down from 156.0% in 2019.”. After selling its entire … Tangible book value shows the value of a company if it is going out of business and must liquidate all of its assets. Key Bank Merger Rumors. So don't rule that out either. Specifically, the bill increased the asset threshold that determines which banks are considered a "systemically important financial institution" -- and therefore subject to more enhanced regulation -- from $50 billion to $250 billion. The bank hasn't purchased another bank since 2012, but the company's President and CEO Joseph Ficalora said on an earnings call earlier this year, "we've made it very clear that we have the ability and have the desire to grow by acquisition and create value for shareholders." Bank Mergers And Acquisitions Rumors. Regions Financial Corp. stock surged in heavy volume Tuesday, as rumors continue to surface that the Birmingham, Ala.-based bank is seeking a buyer.. Shares in Regions, which also soared three weeks ago amid heavy trading, rose $2.375 to $48 on volume of 634,600 shares, the third- most-active day for the stock in the past year. Andrew Bary's "Our Top 10 Stocks for the New Year" shows that the Barron's list for 2021 again has a value bent and includes two returning companies … Here are some of the bank and fintech mergers we’d like to see in 2021: Got any bank or fintech mergers you’d like to see in 2021? The 2019 activity included five transformative deals that reshaped the regional bank space and laid the groundwork for a potential slew of multibillion-dollar mergers-of-equals. With Bank of Montreal possibly over-paying to take out Marshall & Ilsley, TheStreet takes another look at targets among regional players. Market data powered by FactSet and Web Financial Group. We’re motley! Huntington Bancshares Inc (NASDAQ: HBAN) and TCF Financial Corporation (NASDAQ: TCF) announced late Sunday the two banks have agreed to merge in … Only 112 bank mergers were announced in 2020, down 60% from a year earlier and the lowest annual tally in nearly a decade, according to data compiled by Keefe, Bruyette & Woods. With 2021’s global rollout of multiple COVID-19 vaccines, consumer confidence should increase, companies should be more bullish, and economic activity should start to resemble what it was prepandemic. People's United Financial (NASDAQ:PBCT) CEO John Barnes said on the company's most recent earnings call that M&A will pause until there is more certainty in the economy. The numbers would have been even more anemic if not for the deals announced in Q4 2020, including PNC/BBVA. Possible Bank Mergers 2019 . Recently trading at 1.40 price-to-tangible-book value , it's tough to leave this off the list. Last year was not the year to make a deal. Michaud recently said on CNBC's The Exchange that he expects M&A activity to rebound to potentially even higher levels. All Rights Reserved, This is a BETA experience. Saudi National Bank launched in region's largest merger in 2021. You may opt-out by. Connect on Twitter or LinkedIn. This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer. Series between the Miami Marlins and Atlanta Braves at Truist Park on October 8, 2020 in Atlanta, Georgia. Author of the Fintech Snark Tank on Forbes, Ron is ranked among the top fintech influencers globally, and is a frequent keynote speaker at banking and fintech industry events. What can we expect in 2021? The merger is expected to close in the second quarter of 2021. Cumulative Growth of a $10,000 Investment in Stock Advisor, 5 Regional Banks That Could Make an Acquisition @themotleyfool #stocks $NYCB $PNC $MTB $USB $PBCT $BHLB. Ron Shevlin is the Managing Director of Fintech Research at Cornerstone Advisors, where he publishes commissioned research reports on fintech trends and advises both established and startup financial technology companies. For instance, the $13 billion asset Berkshire Hills Bancorp (NYSE:BHLB), based in Boston, recently traded at a 0.49 price-to-tangible-book value and is on KBW's list of potential dividend-cut candidates. You'll get kind of an idea who can be a buyer in this market and that's where you will look for a signal," he said on the show. ATLANTA, GA - OCTOBER 08: Atlanta Braves fans watch Game Three of the National League Division ... [+] Series between the Miami Marlins and Atlanta Braves at Truist Park on October 8, 2020 in Atlanta, Georgia. Saudi National Bank created from the merger of NCB and Samba, as planned, on April, 2021 . Here are five large regional banks well-positioned to make a move. Bram Berkowitz mainly writes in the financials bureau covering the banking sector. According to S&P Global: “During the first 11 months of this year, the industry saw 100 deal announcements worth an aggregate $21.51 billion, compared with 235 deals worth $54.23 billion over the same period in 2019. Regional banks — defined as having between $10 billion and $50 billion in assets — were involved in 35 deals, the highest number since 1999. The roughly $54 billion asset New York Community Bancorp (NYSE:NYCB) is similar to People's United in the sense that it has been chomping at the bit to make an acquisition since the Dodd-Frank roll back. I've previously written about how I think the bank may eventually purchase another small bank in its home state of Connecticut, but I'm also wondering if the lower valuations now available prompts it to think bigger. He added that the company could continue to focus on non-depository acquisitions, such as those in the payments space, individual portfolios, trust services, or technology companies. Huntington Bank Merger Rumors 2018. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Regional bank consolidation has really ratcheted up in the final months of 2020, with three major deals announced since October. However, slumping share prices have created pockets of value among regional U.S. banks, and Bank of America says rumors among hedge fund managers suggest interest in merger … While smaller banks have some incentive to increase their footprints, those with assets well above $50 billion will see the most benefit from a merger. While the market is volatile and valuations seem to constantly be changing, I examined the price-to-tangible-book valuations of most of the large regional banks between $40 billion in assets all the way to nearly half a trillion in assets to better understand the M&A landscape right now. The bank hasn't bought another bank since 2015, according to its website, but as the bank's CFO Darren King said on an earnings call at the end of last year, the bank will "seek" acquisitions when they make sense and add value for shareholders. Recently trading at a price-to-tangible-book valuation of 1.30, it certainly could position itself as a buyer right now. 3: Atlanta: 04/12/2021: BancKentucky, Inc., Murray, Kentucky; Several big regional bank mergers have taken place in the past few months -- that has helped prop up their stock prices, too. KeyCorp. Regions Financial Corporation, formerly known as First Alabama Bancshares, was founded on July 13, 1971 with the merger of three Alabama banks: First National Bank of Montgomery, Alabama (opened 1871), Exchange Security Bank of Birmingham, Alabama (opened 1928), and First National Bank of Huntsville, Alabama (opened 1856). While merger and acquisition (M&A) activity will likely pause in the banking industry until the economy rebounds and there is less uncertainty about credit quality, the wave that resulted in roughly 5% of industry consolidation in 2019 shows no signs of slowing. Image Source: U.S. Bancorp. 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