The banking industry continues to deal with deposit cost pressure but maintains hope that interest rates have stabilized and will possibly fall in late 2024, which could result in net interest margin expansion. This could lead to a long-awaited rebound in bank stocks and bank M&A prices, as well as increased deal volume, reversing the trends seen since 2023 which began with the bank failures in March of that year but have carried through the first half of 2024. To better inform banks as they plan strategically for the future, we will study the current trends in bank performance and valuation levels for bank stocks and M&A transactions after 18 months of historically weak M&A volume and pricing.
In this session we will:
- Evaluate community bank performance trends including loan and deposit growth, NIM changes
- Analyze asset quality, both lagging and forward indicators, for signs of any change
- Examine publicly-traded bank stocks and the likely implications for M&A pricing and activity
- Discuss the outlook for bank M&A from the perspective of both buyers and sellers
- Consider what to expect from bank stocks and M&A in the latter part of 2024