KFI Insights: Banking M&A Remains Muted; Executives Optimistic In 2023

KFI INSIGHTS: BANKING M&A REMAINS MUTED; EXECUTIVES OPTIMISTIC IN 2023

Here’s our latest edition of KFI Insights, where we bring you the latest news on banking M&A and a curation of our best research.

Banking mergers and acquisitions (M&A) remained below historical trends with seven deals announced in February—less than half the typical monthly pace for U.S. bank transactions. Deal-making has been muted so far this year due to economic uncertainty, climbing interest rates, and paper losses on banks’ bond portfolios.

February deals tracked by KFI:

The biggest takeover in February involved LINKBANCORP’s purchase of Partners Bancorp in an all-stock deal worth about $167.8 million. Billed as a merger of equals, the combined bank holding company will have about $3 billion in assets and an expected market value of $300 million.

The deal, which is expected to close in the third quarter, expands LINKBANK’s footprint to Maryland and Washington, D.C., by adding 21 branches from Partners’ subsidiaries Bank of Delmarva and Virginia Partners Bank.

Partners had previously agreed to sell itself to OceanFirst Financial Corp. in 2021, but that deal was terminated last November.

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