M&A In Florida: VLY’s 11% Deal Caps 22nd Transaction In Sunshine State Since 2014

The Wednesday May 27th merger news that VLY-Valley National Bancorp was acquiring CNLB-CNLBancshares 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 IBKC-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 yesterday (i.e., including last night’s news from OKSB-Southwest Bancorp in OK and GNBC-Green Bancorp in TX).  A recap of the FIG Partners M&A analysis can be viewed below (note that the percentage of deals above 125% price-to-T.Book is slowly rising):

All Bank M&A Stats Through 5-27-2015-1