The Wednesday May 27th merger news that Valley National Bancorp (VLY) was acquiring CNLBancshares (CNLB) in Orlando, FL for $207 Million or an 11% Core Deposit Premium was the 7th and most expensive Bank M&A deal in 2015 in the state of Florida.
In fact, since January 2014, there have been 22 mergers between Banks in the Sunshine State – 18 have disclosed pricing according to SNL Financial and FIG Partners analysis. These 22 FL M&A transactions have cumulative value of $643 Mil. for $5.5 Billion of Assets (at announcement) and $4.4 Bil. in Deposits.
The VLY/CNLB marriage is the 2nd largest deal in Florida, only VLY’s purchase of 1st United Bancorp in May 2014 was larger with IBERIABANK’s closed purchase of Old Florida Bancshares in Orlando was just behind yesterday’s news in asset size. Keep in mind that VLY advertises its purchase as an 8% core deposit premium (see deal slides here), but factoring out preferred equity as well as options (which we treat as a cash-out with no equity assigned) results in the higher 11% core premium (which is confirmed in the methodology of the SNL Financial M&A database).
From a national perspective, there have been 92 Bank mergers so far in 2015, including three transactions announced in the last few days (i.e., including recent news from OKSB-Southwest Bancorp in OK and GNBC-Green Bancorp in TX).
FIG Partners M&A analysis can be viewed below. Note that the percentage of deals above 125% price-to-T.Book is slowly rising.