The banking industry continues to deal with deposit cost pressure but as interest rates stabilize and possibly fall in 2024, net interest margin expansion is a possibility. This could lead to a rebound in bank stocks and bank M&A prices, as well as increased deal volume, reversing the trends seen in 2023 which began with the bank failures in March. To better inform banks as they plan strategically for future growth, we will study the current trends in bank performance and valuation levels for both bank stocks and M&A transactions after 2023’s historically weak M&A volume and pricing.
In this session we will:
- Evaluate community bank performance trends including loan and deposit growth, NIM changes
- Study various factors that impact bank profits and shareholder value
- 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 throughout 2024 in light of the expected interest rate environment