SNL Report: Bank M&A 2013: The year's deals begin

By Aarti Kanjani, SNL Financial staff writer

Twelve deals have been announced in 2013, as of the end of January. The median price to tangible book value was 93.26%. The fourth quarter of 2012 saw 52 deal announcements with median price to tangible book value at 110.06%.

2012 saw a higher number of deal announcements, 230, compared to 151 transactions announced in 2011. However, the total deal value fell to $13.59 billion, compared to $16.96 billion in 2011. In 2010, 179 deals were announced valued at $12.26 billion.

The median price to tangible book value was 115.91% in 2012 for 135 deals with disclosed terms, compared to 106.74% in 2011 for 91 deals with disclosed terms. In 2010, the ratio stood at 119.61% for 112 deals with terms disclosed. (For a more complete report on 2012, click here.) 

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M&T Bank Corp.'s Aug. 27, 2012, announcement that it would acquire Paramus, N.J.-based Hudson City Bancorp Inc. for $3.81 billion marked the largest deal of 2012 and the third-largest since Jan. 1, 2010.

The most expensive bank deal since Jan. 1, 2010, was announced in March 2012, when Houston-based Cadence Bancorp LLC said it would acquire Houston-based Encore Bancshares Inc. for $251.3 million. The deal was valued at 240.05% of tangible book.

Following Cadence on the list was another Houston deal: Dallas-based Comerica Inc.'s agreement to acquire Sterling Bancshares Inc. came in at 229.70% of tangible book.

The largest bank deal since Jan. 1, 2010, was McLean, Va.-based McLean, Va.-based Capital One Financial Corp.'s June 16, 2011, agreement to buy Wilmington, Del.-based ING Bank FSB for $9.00 billion. This also marks the largest bank deal since 2008, when Wells Fargo & Co. acquired Wachovia Corp.

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Bank and thrift deals that were announced from Jan. 1, 2013, through Jan. 30, 2013, included:

• • Charleston, W.Va.-based United Bankshares Inc. announced on Jan. 30 that it agreed to acquire of Arlington, Va.-based Virginia Commerce Bancorp Inc. for $493.5 million. The deal value represented 183.0% of book and tangible book value, on a per-share basis. The transaction is expected to close in the third quarter.

• • Oakland, Calif.-based One PacificCoast Foundation unit One PacificCoast Bancorp Inc. said Jan. 30 that it will acquire a majority stake in Portland, Ore.-based Albina Community Bank, a unit of Albina Community Bancorp. Terms of the deal were not disclosed. The transaction is structured to raise sufficient capital to bring Albina's regulatory capital ratios to the level required by its regulators. The deal is expected to close in the second quarter.
• • Baton Rouge, La.-based Investar Bank agreed to acquire Hammond, La.-based First Community Bank. Terms of the deal, announced Jan. 28, were not disclosed. It is expected to close in the second quarter.

• • Oak Ridge, N.J.-based Lakeland Bancorp Inc. announced Jan. 28 that it will buy Bernardsville, N.J.-based Somerset Hills Bancorp for $65.7 million. The deal value represents 152.0% of book and tangible book value. The closing is expected to occur in the second or third quarter.

• • Little Rock, Ark.-based Bank of the Ozarks Inc. announced Jan. 24, the acquisition of Shelby, N.C.-based First National Bank of Shelby for $64.0 million. On an aggregate basis, the deal value is 63.1% of book and tangible book. The transaction is expected to close during the second or third quarter.

• • Wintrust Financial Corp. said Jan. 22 that it will acquire Lansing, Ill.-based First Lansing Bancorp Inc. for $38.5 million. The deal value marks 94.2% of book and 97.8% of tangible book value, on an aggregate basis.

• • Phoenix-based Western Alliance Bancorp. will acquire Fountain Valley, Calif.-based Centennial Bank. The deal, announced Jan. 18, was valued at $57.5 million. On an aggregate basis, it represented 57.5% of book and 57.6% of tangible book value.

• • Eagle Bancshares Inc. has agreed to acquire Eagle, Neb.-based Eagle State Bank from Eagle Capital Co., the Lincoln (Neb.) Journal Star reported Jan. 17. Terms of the deal were not disclosed.

• • Middletown, Conn.-based Liberty Bank announced Jan. 16 the acquisition of New Haven, Conn.-based Southern Connecticut Bancorp Inc. The deal, valued at $10.6 million, marks 88.7% of book and tangible book, on a per-share basis. The deal is expected to close in the second quarter.

• • A group of investors has agreed to acquire majority stakes in Grove, Okla.-based Grand Savings Bank, a unit of Chambers Bancshares Inc. Terms of the deal, announced Jan. 15, were not disclosed.

• • Fargo, N.D.-based State Bankshares Inc. unit Bell State Bank & Trust will acquire Minnetonka, Minn.-based Business Bancorp. Inc. Terms of the deal, announced Jan. 8, were not disclosed.

• • Los Angeles-based RBB Bancorp said Jan. 8 that it will buy Buena Park, Calif.-based Los Angeles National Bank from Concord Place Inc. The transaction is anticipated to be completed in the second quarter. Terms of the cash deal were not disclosed.