The M&A activity among U.S. regional banks is rebounding after a subdued 2023. Driven by the need to strengthen balance sheets amidst heightened competition for low-cost deposits, regional banks with assets between $10 billion and $100 billion have completed 38 deals year-to-date, surpassing the 29 deals from the same period last year. Regulatory hurdles notwithstanding, banks are expanding inorganically to optimize their portfolios and mitigate risks associated with high exposure to commercial real estate loans. SouthState Corporation’s acquisition of Independent Bank Group for $2.02 billion, UMB Financial’s acquisition of Heartland Financial for $2 billion, and Renasant Corp.’s merger with The First Bancshares for $1.2 billion are the biggest deals announced so far in 2024. The Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency have proposed stricter merger regulations to ensure these deals do not raise systemic concerns.
Banking, Financial Services,United States
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