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800.644.1704 |
REGIONAL FINANCIAL SERVICES MERGERS & ACQUISITIONS UPDATE
MID-ATLANTIC REGION
Q3 2018
bkdcorporatefinance.com
REGIONAL M&A TRANSACTION STATISTICS
2
Number of Regional Whole Bank & Thrift Transactions
Regional Average Deal Value to Tangible Book
Regional Average Deal Value to LTM Earnings
Regional Average Deal Value to Assets Regional Average Tangible Book Premium to Core Deposits
Note: Includes all whole bank transactions in Delaware, Washington, D.C., Maryland, New Jersey, New York, Pennsylvania and Puerto RicoSource: S&P Global Market Intelligence
bkdcorporatefinance.com
19
2732
15
27
2017
0
10
20
30
40
'13 '14 '15 '16 '17 YTD Sep '17 YTD Sep '18
1.12
1.47 1.44
1.271.39
1.53
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
'13 '14 '15 '16 '17 YTD Sep'18
23.33 24.25 23.85
20.69
25.2927.32
0
5
10
15
20
25
30
'13 '14 '15 '16 '17 YTD Sep'18
11.0%
14.5% 14.5%
11.0%
14.6% 14.6%
0%
2%
4%
6%
8%
10%
12%
14%
16%
'13 '14 '15 '16 '17 YTD Sep'18
1.4%
7.1% 7.5%
4.0%
6.8%
10.5%
0%
2%
4%
6%
8%
10%
12%
'13 '14 '15 '16 '17 YTD Sep'18
NATIONAL M&A TRANSACTION STATISTICS
3
National Average Deal Value to Tangible Book
National Average Deal Value to LTM Earnings
Number of National Whole Bank & Thrift Transactions
BKD CORPORATE
FINANCE SERVICES
• Company Sales & Divestitures • Management Buyouts
• Debt & Equity Recapitalizations
• Succession Planning & Strategic Options Analysis
• Mergers & Acquisitions • Affiliations
Source: S&P Global Market Intelligence
bkdcorporatefinance.com
144
110
186
148
219 225
284 275
239256
182199
0
50
100
150
200
250
300
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 YTD Sep'17
YTD Sep'18
1.7
1
1.1
6
1.1
8
1.1
0 1.2
0
1.2
5 1.4
3
1.4
4
1.3
8
1.6
7
1.7
3
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 YTDSep'18
19
.59
16
.26
21
.59
20
.35
18
.72
19
.50 21
.51
21
.05
20
.21
19
.46
23
.05
0
5
10
15
20
25
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 YTDSep'18
NATIONAL M&A TRANSACTION STATISTICS BY ASSET SIZE
4
National Average Deal Value to Tangible Book
National Average Deal Value to LTM Earnings
NATIONAL M&A TRANSACTION STATISTICS BY PERFORMANCE
National Average Deal Value to Tangible Book by Performance
National Average Deal Value to LTM Earnings by Performance*
Source: S&P Global Market Intelligence
*Deal value to LTM earnings for negative ROAA transactions are not meaningful and therefore are not presented in this chart
bkdcorporatefinance.com
1.1
8 1.3
9
1.3
6
1.2
8 1.5
4
1.5
9
1.6
6
1.6
5
1.9
3
1.7
6
2.1
4 2.3
5
0.00
0.50
1.00
1.50
2.00
2.50
'13 '14 '15 '16 '17 YTD Sep'18
Less than $1B Greater than $1B
20
.17
21
.49
21
.01
19
.66
18
.57 2
2.5
5
16
.29
21
.62
21
.20
22
.20
22
.16 24
.94
0.00
5.00
10.00
15.00
20.00
25.00
30.00
'13 '14 '15 '16 '17 YTD Sep'18
Less than $1B Greater than $1B
0.7
7
1.1
1
0.8
8
0.9
4 1.1
8
1.0
01.2
7 1.4
2
1.4
2
1.4
2 1.6
4
1.7
6
1.6
1
1.6
8
1.7
2
1.4
8
1.8
5
1.9
6
0.00
0.50
1.00
1.50
2.00
2.50
'13 '14 '15 '16 '17 YTD Sep'18
Negative ROAA ROAA of 0.0% to 0.99%
ROAA Greater than 1.0%
22
.41
24
.92
24
.08
23
.72
23
.57 2
7.8
7
11
.65
12
.37
14
.05
11
.05
13
.42
14
.11
0.00
5.00
10.00
15.00
20.00
25.00
30.00
'13 '14 '15 '16 '17 YTD Sep'18
ROAA of 0.0% to 0.99% ROAA Greater than 1.0%
NATIONAL BRANCH M&A TRANSACTION STATISTICS
5
Number of National Branch Transactions & Branches Sold
National Branch Average Franchise Premium to Deposits
Source: S&P Global Market Intelligence
bkdcorporatefinance.com
62 76 81 82 95 77 80 84 56 42 22 22
196
248
197
413389
288
424
269
121
102
69 115
0
50
100
150
200
250
300
350
400
450
0
10
20
30
40
50
60
70
80
90
100
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 YTD Sep'17
YTD Sep'18
Bra
nch
es
Sold
Tran
sact
ion
s
5.79%
3.12%
3.58%3.26%
2.52%2.68%
3.63%
2.79%
4.47% 4.58% 4.57%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 YTD Sep'18
REGIONAL PUBLICLY TRADED BANKING COMPANIES
6
NATIONAL FAILED BANK STATISTICS
Source: S&P Global Market Intelligence
Source: Federal Deposit Insurance Corporation
bkdcorporatefinance.com
Name Ticker State Total Assets
($000)
Total Equity ($000)
Stock Price 9/30/2018
Price Change
YTD
Price to Tangible
Book
Price to LTM
Earnings
Dividend Yield
Return on Assets (%)
Return on Equity (%)
Equity/ Assets
(%)
JP Morgan Chase & Co. JPM NY 2,615,183,000 258,956,000 112.84 5.5% 207.13 15.07 2.84 1.29 13.06 9.90
Citigroup Inc. C NY 1,925,165,000 197,863,000 71.74 -3.6% 115.61 NM 2.51 0.96 9.28 10.28
PNC Financial Services Group, Inc. PNC PA 380,080,000 47,102,000 136.19 -5.6% 189.57 11.85 2.79 1.48 11.99 12.39
Bank of New York Mellon Corp. BK NY 349,770,000 41,650,000 50.99 -5.3% 295.80 12.29 2.20 1.34 10.65 11.91
M&T Bank Corporation MTB NY 116,827,637 15,436,085 164.54 -3.8% 244.84 16.95 2.43 1.81 13.53 13.21
New York Community Bancorp, Inc. NYCB NY 51,246,654 6,794,015 10.37 -20.4% 132.07 11.92 6.56 0.84 6.28 13.26
Popular, Inc. BPOP PR 47,919,428 5,244,349 51.25 44.4% 114.44 18.30 1.95 1.18 10.16 10.94
Signature Bank SBNY NY 45,870,710 4,237,997 114.84 -16.3% 154.53 14.61 1.95 1.37 14.83 9.24
F.N.B. Corporation FNB PA 32,617,595 4,524,864 12.72 -8.0% 203.09 15.70 3.77 1.24 8.92 13.87
Sterling Bancorp STL NY 31,261,265 4,438,303 22.00 -10.6% 201.68 20.00 1.27 1.54 10.88 14.20
Valley National Bancorp VLY NJ 30,881,948 3,302,936 11.25 0.3% 193.25 20.09 3.91 0.91 8.41 NA
Investors Bancorp, Inc. ISBC NJ 25,518,495 3,035,221 12.27 -11.6% 122.20 22.72 2.93 0.85 7.05 11.89
Fulton Financial Corporation FULT PA 20,364,810 2,283,014 16.65 -7.0% 170.80 17.53 2.88 1.29 11.57 11.21
Community Bank System, Inc. CBU NY 10,659,567 1,668,345 61.07 13.6% 371.04 16.42 2.49 1.62 10.36 15.65
Customers Bancorp, Inc. CUBI PA 10,617,104 954,812 23.53 -9.5% 106.21 12.13 0.00 0.22 2.54 8.99
Average -2.5% 188.15 16.11 2.70 1.20 9.97 11.93
25
140
157
92
51
2418
8 5 80
0
20
40
60
80
100
120
140
160
180
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 YTD Sep'18
ABOUT US
Construction &
Engineering
Financial
Services
Health
Care
Manufacturing
&
Distribution
Business
Services
Consumer
Services &
Products
Energy
Technology,
Media &
Telecom
INDUSTRY FOCUS
BKDCF, a wholly owned subsidiary of BKD, LLP, helps companies and stockholders go beyond their numbers by creating value through investment banking solutions that include mergers, acquisitions, sales, recapitalizations, management buyouts and financings.
Founded in 1994, BKDCF is staffed with experienced investment bankers and financial analysts. In addition, the firm draws on the resources of BKD with its network of accountants, auditors, tax professionals, business consultants and industry-specific consultants.
BKDCF is a member of the Financial Industry Regulatory Authority and the Securities Investor Protection Corporation.
The professionals of BKD Corporate Finance, LLC (BKDCF) have more than 200
years of combined experience helping company owners plan for and execute
their growth and exit strategies. From managing the sale of a company to
negotiating the acquisition of a competitor or raising debt and equity capital to
improve financial and operational flexibility, BKDCF can help you to develop a
specific course of action for achieving your desired results.
BKD/BKDCF OfficeBKD Office
FINANCIAL SERVICES CONTACT
7
Wyatt JenkinsVice PresidentSpringfield, [email protected]
bkdcorporatefinance.com
BKD SERVICES
Abundant services.
Sheer precision.
BKD, LLP offers a full range of services and industry-focused expertise to provide you with insightful solutions and help you stay a cut above the competition.
FINANCIAL
ASSURANCE• Audit, review & compilations• Benchmarking• Internal audit• Internal control studies• SEC filings• SOX 404 compliance
CONSULTING• Accounting outsourcing• Bankruptcy consulting• Budgeting & financial planning• Cost accounting• Employee benefit plan
structuring & administering• ESOP feasibility analysis• Forecasts & projections
FEDERAL & STATE TAX
PLANNING & COMPLIANCE• Compensation planning• Corporate tax planning• Inventory tax planning• R&D tax credit enhancements• Real estate cost segregation
studies• Restructuring planning• State & local tax planning
FORENSICS & VALUATION
CONSULTING• Bankruptcy services• Business valuations• Fraud prevention• Litigation support
INTERNATIONAL TAX
STRATEGIES• DISC• Expatriate assignment services• Foreign tax credit planning• Global structuring support• Indirect global taxes• Transfer pricing
INVESTMENT & FINANCIAL
PLANNING• Estate & gift planning• Family tax planning• Investment management• Personal wealth planning• Retirement planning
TRANSACTION SERVICES• Federal, state & local tax
diligence• Financial diligence• Operations diligence• Technology diligence
GROWTH & ADVISORY
INVESTMENT BANKING• Mergers & acquisitions• Company sales & divestitures• Debt & equity recapitalizations• Management buyouts• Affiliations• Succession planning• Strategic options analysis
ECONOMIC DEVELOPMENT• Expansion projects• Grants & public incentives
INTERNATIONAL MARKET• Development• Exporting• Direct investment• Licensing• Acquisitions
OPERATIONS MANAGEMENT
PERFORMANCE ENHANCEMENT
ADVICE & KNOW-HOW (PEAK)
METHODOLOGY• Business process improvement• Decision costing• Inventory optimization• Lean manufacturing• Profit improvement
TECHNOLOGY
APPLICATIONS SOFTWARE• Best-Abra• MAS 90, 200 & 500• Microsoft CRM• Microsoft Dynamics AX• Microsoft Dynamics GP
IT SERVICES• IT assessments & planning• IT control reviews• Project management assistance• Security solutions & penetration
testing
STRATEGIC TECHNOLOGY• E-business planning• IT assessments & planning• Systems selection & implementation
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