Deposits Becoming a Bigger Aspect of Bank M&A

M&A at Midyear: Lackluster Volume but Attention-Getting Prices
– American Banker

American Banker interviewed Manatt's Craig Miller, a partner in the firm's financial services practices, about the mergers and acquisitions trends he’s seeing so far this year.
As American Banker reports, deposits are becoming a more important aspect of bank M&A. The average core deposit premium was about nine percent for deals announced through June 19, a meaningful increase from roughly five percent for all of last year’s bank acquisitions. Premiums paid in branch deals have also been climbing.
“You’re seeing a lot of people looking for good, high-quality deposit relationships,” said Miller. “Buyers are looking for core deposits.”



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