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SNL Report: How M&A finished up 2012

SNL Report: Deals up, total value down, pricing improved

SNL Report: How M&A finished up 2012

By Aarti Kanjani, SNL Financial staff writer

2012 saw a higher number of deal announcements, 236, compared to 178 transactions announced in 2011. However, the total deal value was lower and fell to $13.66 billion, compared to $17.04 billion. In 2010, 215 deals were announced valued at $12.39 billion.

Pricing also saw improvement. The median price to tangible book value was 114.86% in 2012 for the 139 deals with disclosed terms, compared to 106.42% in 2011 for the 101 deals with disclosed terms and 115.38% in 2010 for 121 deals with terms disclosed.

Exhibit 1
 

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Exhibit 2  

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Some milestones for 2012:

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

The largest bank deal since Jan. 1, 2010, was 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.

Most expensive deal. The highest-priced bank deal since Jan. 1, 2010, was announced in March, when Houston-based Cadence Bancorp LLC said it would acquire Encore Bancshares Inc., also based in Houston, 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 Houston-based Sterling Bancshares Inc. came in at 229.70% of tangible book.

Exhibit 3

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Exhibit 4

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Since Jan. 1, 2011, the Midwest has been the most active region for bank M&A, with 129 deals announced, based on target region, followed by the Southwest with 65.

Exhibit 5   

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Bank and thrift deals that were announced from Dec. 6, 2012, through Dec. 31, 2012, included:

* Newtown, Pa.-based TF Financial Corp. announced Dec. 28, the acquisition of Roebling, N.J.-based Roebling Financial Corp Inc. ($161.8 million) for $14.6 million. It represents 86.2% of book and tangible book value, on a per-share basis. The deal is expected to close during the second or third quarter of 2013.

Lansing, Mich.-based Capitol Bancorp Ltd. signed a letter of intent Dec. 28 to sell Albuquerque, N.M.-based Sunrise Bank of Albuquerque ($51.5 million) to a group of unidentified investors. Terms of the deal were not disclosed.

• Hondo, Texas-based Texas Heritage Bancshares Inc. agreed to acquire Brady, Texas-based Texas Country Bancshares Inc., the holding company of Uvalde Bancshares Inc, the San Antonio Express-News reported Dec. 21. The transaction, terms of which were not disclosed, is expected to close in the spring.

• Baltimore-based BV Financial Inc. (MHC) unit Bay-Vanguard FSB (MHC) has agreed to merge with Baltimore-based Vigilant FSB ($50.9 million) in a merger of mutuals. No consideration was exchanged.

• Short Hills, N.J.-based Investors Bancorp Inc. (MHC) announced Dec. 19 that it will acquire Robbinsville, N.J.-based Roma Financial Corp. (MHC) ($1.84 billion) for $459.3 million. On a per-share basis, the deal value was 215.1% of book and 216.9% of tangible book. The aggregate merger consideration to be received by Roma Financial Corp. (MHC) minority shareholders is $113.5 million.

• Louisville, Ky.-based S.Y. Bancorp Inc. said Dec. 19 that it will buy La Grange, Ky.-based Bancorp Inc. for $20.0 million. The deal value marks 103.8% of book and tangible book value, on an aggregate basis. The acquisition is set to close in the second quarter of 2013.

• Fresno, Calif.-based Central Valley Community Bancorp agreed to acquire Visalia, Calif.-based Visalia Community Bank ($200.4 million) for $21.3 million. The deal announced Dec. 19, represents 110.5% of book and tangible book value, on a per-share basis.

• Glencoe, Minn.-based Security Bancshares Co. unit Security Bank & Trust Co. has agreed to acquire Winsted, Minn.-based Flagship Bank Winsted ($39.1 million) from Flagship Financial Group Inc. Terms of the deal were not disclosed.

• Mitchell, S.D.-based CorTrust Bank NA, a unit of Hopkins Financial Corp. will acquire Blaine, Minn.-based Blaine State Bank ($35.7 million), a unit of Tysan Corp. Terms of the deal were not disclosed.

• Mahnomen, Minn.-based Mahnomen Bancshares Inc. unit First National Bank in Mahnomen has agreed to acquire Twin Valley, Minn.-based First Financial Bank ($15.6 million) from MEDR Bancshares Inc.

• Houston-based Prosperity Bancshares Inc. announced Dec. 10 the acquisition of Oklahoma City-based Coppermark Bancshares Inc. ($1.32 billion). The deal value was $194.4 million, 158.8% of book and tangible book value, on an aggregate basis.

• Danville, Ark.-based Chambers Bancshares Inc. acquired Decatur, Ark.-based Peterson Holding Co. and unit Decatur State Bank, according to a Dec. 8 report from The City Wire of Arkansas. Terms of the deal were not disclosed.

[This article was posted on January 18, 2013, on the website of ABA Banking Journal, www.ababj.com.]

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