National Financial Services M&A Transaction Perspective
Bank mergers and acquisitions (M&A) activity increased significantly in 2025, with a total of 181 transactions announced. That is an increase from the 124 transactions announced in 2024, and the most since 212 transactions were recorded in 2021.
Pricing for whole bank and thrift transactions notched a strong increase in 2025, with an average price to tangible book value (P/TBV) of 144% compared to 125% in 2024 and 128% in 2023.
Stock prices for banks have recovered significantly after the sharp drop in bank stocks and the broader stock market because of trade uncertainties earlier in the year. The Dow Jones U.S. Banks Index (DJUSBK) was up 28.70% at $836.90 for the 12-month period ending December 31, 2025, while the KBW Nasdaq Bank Index (BKX) was up 28.80% at $164.18 in the same period.
West Region
In the West Region, there were 17 announced transactions in 2025, which is greater than the 15 transactions announced in 2024. Based on transactions with pricing data available, P/TBV averaged 89% in the West Region in 2024. Based on the six transactions with pricing data available, P/TBV averaged 151% in the West Region in 2025.
Mid-Atlantic Region
In the Mid-Atlantic Region, there were 14 announced transactions in 2025, which is greater than the 11 transactions announced in 2024. Based on transactions with pricing data available, P/TBV averaged 97% in the Mid-Atlantic Region in 2024. Based on the 11 transactions with pricing data available, P/TBV averaged 128% in the Mid-Atlantic Region in 2025.
Midwest Region
In the Midwest Region, there were 70 announced transactions in 2025, which is greater than the 46 transactions announced in 2024. Based on transactions with pricing data available, P/TBV averaged 142% in the Midwest Region in 2024. Based on the 17 transactions with pricing data available, P/TBV averaged 138% in the Midwest Region in 2025.
Northeast Region
In the Northeast Region, there were eight announced transactions in 2025, which is one greater than the seven transactions announced in 2024. Based on transactions with pricing data available, P/TBV averaged 137% in the Northeast Region in 2024. Based on the three transactions with pricing data available, P/TBV averaged 103% in the Northeast Region in 2025.
Southeast Region
In the Southeast Region, there were 35 announced transactions in 2025, which is greater than the 23 transactions announced in 2024. Based on transactions with pricing data available, P/TBV averaged 143% in the Southeast Region in 2024. Based on the 18 transactions with pricing data available, P/TBV averaged 163% in the Southeast Region in 2025.
Southwest Region
In the Southwest Region, there were 37 announced transactions in 2025, which is greater than the 18 transactions announced through September 2024. Based on transactions with pricing data available, P/TBV averaged 142% in the Southwest Region in 2024. Based on the 15 transactions with pricing data available, P/TBV averaged 147% in the Southwest Region in 2025.
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