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Bank M&A 2021 Deal Tracker: USB's acquisition sends 2021 deal value over $50B

Four U.S. bank M&A deals larger than $500 million were announced in September, pushing 2021's total megadeal count to 18 for the year, a multidecade record.

September's 19 announced deals had an aggregate deal value of $12.46 billion, which drove the year-to-date deal value total to $51.92 billion, well beyond 2020's total deal value of $27.84 billion.

The only other year since 2007 in which U.S. bank M&A deal volume surpassed $50 billion was 2019, when more than half of the $55.03 billion total came from the merger of equals between SunTrust Banks Inc. and BB&T Corp. to form Truist Financial Corp.

The median deal value-to-tangible common equity ratio for 2021 deals rose to 152.5%, up from 134.8% for the full year 2020.

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On Sept. 23, New York-based Valley National Bancorp announced that it would acquire New York-based Bank Leumi Le-Israel Corp. for $1.14 billion at a deal value-to-tangible common equity ratio of 130.8%. Valley National's stock price rose 6.9% following the announcement, which was Valley's second deal in less than three months.

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On Sept. 21, U.S. Bancorp announced it would buy MUFG Union Bank NA's retail banking operations for $7.97 billion, in the largest deal of the year and the fourth-largest deal since 2009. The transaction carried a deal value-to-tangible common equity ratio of 127.5%.

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On Sept. 16, Billings, Mont.-based First Interstate BancSystem Inc. announced its acquisition of Great Western Bancorp Inc. for $1.97 billion, at a deal value-to-tangible common equity ratio of 170.0%. Unlike in the other three megadeals announced in September, the buyer's stock price fell following the announcement, as First Interstate shares dropped 7% over concerns over credit quality at Great Western.

A day earlier, on Sept. 15, Conway, Ark.-based Home Bancshares Inc. announced its $886.8 million acquisition of Canyon, Texas-based Happy Bancshares Inc., sending its shares up 6.4%.

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Click here for a list of pending and completed M&A deals announced since Jan. 1, 2011.

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