National Financial Services M&A Transaction Perspective Q3
Bank mergers and acquisitions (M&A) activity has slowed going into the fourth quarter. There were a total of 123 transactions announced through September 30, 2026. That is a decrease from the 132 transactions announced through September 30, 2025.
Pricing for whole bank and thrift transactions has seen a slight increase through September 2026, with an average price to tangible book value (P/TBV) of 153% compared to 147% through September 2025 and 144% in 2025 as a whole.
While bank stocks generally remained in positive territory for the trailing 12 months (which ended September 30, 2026), valuations were pressured by the rise in interest rates and resulting margin compression. After gaining more than 20% through June 30, 2026, the Dow Jones U.S. Banks Index (DJUSBK) was up only 6.73% at $838.54 for the 12 months ending September 30, 2026, while the KBW Nasdaq Bank Index (BKX) was up only 11.49% at $169.96 in the same period.
West Region Q3
In the West Region, there were nine announced transactions through September 30, 2026, which is fewer than the 13 transactions announced through September 2025. Based on transactions with pricing data available, P/TBV averaged 151% in the West Region in 2025. Based on the five transactions with pricing data available, P/TBV averaged 154% in the West Region through September 2026.
Mid-Atlantic Region Q3
In the Mid-Atlantic Region, there were six announced transactions through September 30, 2026, which is less than the eight transactions announced through September 2025. Based on transactions with pricing data available, P/TBV averaged 128% in the Mid-Atlantic Region in 2025. Based on the four transactions with pricing data available, P/TBV averaged 139% in the Mid-Atlantic Region through September 2026.
Midwest Region Q3
In the Midwest Region, there were 54 announced transactions through September 30, 2026, which is one less than the 55 transactions announced through September 2025. Based on transactions with pricing data available, P/TBV averaged 138% in the Midwest Region in 2025. Based on the 17 transactions with pricing data available, P/TBV averaged 141% in the Midwest Region through September 2026.
Northeast Region Q3
In the Northeast Region, there were six announced transactions through September 30, 2026, which is one less than the seven transactions announced through September 2025. Based on transactions with pricing data available, P/TBV averaged 103% in the Northeast Region in 2025. Based on the three transactions with pricing data available, P/TBV averaged 159% in the Northeast Region through September 2026.
Southeast Region Q3
In the Southeast Region, there were 22 announced transactions through September 30, 2026, which is fewer than the 25 transactions announced through September 2025. Based on transactions with pricing data available, P/TBV averaged 163% in the Southeast Region in 2025. Based on the seven transactions with pricing data available, P/TBV averaged 182% in the Southeast Region through September 2026.
Southwest Region Q3
In the Southwest Region, there were 26 announced transactions through September 30, 2026, which is more than the 24 transactions announced through September 2025. Based on transactions with pricing data available, P/TBV averaged 147% in the Southwest Region in 2025. Based on the five transactions with pricing data available, P/TBV averaged 162% in the Southwest Region through September 2026.
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