Investors are Eager to Back Bank Acquirers

A look at the pricing for stock offerings tied to M&A shows that institutional investors are excited about these deals. We also look at de novo activity as 2024 nears its end.

Hello again, Bank Slaters!

Things have been so busy around here! I just returned from New York City and the ABA Annual Convention — the association puts on a great program both in terms of the general session and the breakouts. This week, I’ll be back at Ole Miss, where I will moderate a great panel focused on the banking industry’s growth prospects in 2025.

My latest Forbes Finance Council article is live, where I share my approach to evaluating board performance and director engagement. I advocate surveying your directors periodically to assess if their skills and perspectives align with your bank’s strategy and vision. Give it a read here — reach out to paul@thebankslate.com to discuss how we can work together to take the pulse of your institution’s board.

Let’s talk about investors’ appetite to back bank acquirers.

While preparing for the M&A panel at the ABA Annual Convention, I crunched several sets of data, including stats on common stock sales tied to recently announced acquisitions. Several banks have announced such plans — including Mid Penn Bancorp’s decision to raise $70 million tied to its pending purchase of William Penn Bancorp. People keep saying that institutional investors are hungry for these deals.