The biggest bank M&A deals of 2022

December 27, 2022 7:00 AM

There were just 149 U.S. bank mergers and acquisitions announced through November of this year, according to the latest tally from S&P Global Market Intelligence. That put the industry on pace for 162 deals in 2022, a sharp decline from 206 the year before.

As of Nov. 30, these deals totaled $21.9 billion in value, far shy of the $60.2 billion reported over the same period in 2021, according to S&P data.

The slump came at a time when U.S. regulators have taken a harder look at consolidation within the industry before approving major acquisitions.

Still, several substantial deals were inked in 2022, with most of the largest coming in the second half of the year. Following are the biggest acquisitions of the year as measured by deal value at announcement.

Toronto-Dominion Bank and First Horizon

Toronto-Dominion Bank said in February it would buy First Horizon Corp. in an all-cash, $13.4 billion deal that would create a top-six bank in the U.S. by assets. The Canadian company had been looking for a major M&A deal in the U.S. for about a year and found its target in the Memphis, Tennessee-based First Horizon. TD and First Horizon originally expected the deal, which would create a roughly $614 billion-asset company, to close this year. They are now looking at early 2023. TD already has a presence in the southern U.S., with nearly 250 branches in Florida, North Carolina, South Carolina and Virginia. Combining with First Horizon would give it additional branches in those states as well as 154 in Tennessee and an entree into Georgia.

Provident Financial and Lakeland Bancorp

Provident Financial Services in Iselin, New Jersey, said in September it agreed to acquire Lakeland Bancorp in Oak Ridge, New Jersey. The $1.3 billion, all-stock deal would create a $25 billion-asset bank with $20 billion of deposits and branches throughout New Jersey. The companies said the merger would combine two established commercial real estate lenders with complementary ancillary business lines. These include Provident's fee-based insurance and wealth management operations and Lakeland's asset-based lending and equipment lease financing units. The deal is anticipated to close in 2023. "The scale and profitability of the combined organization will enable us to invest in the future, better compete for market share, and better serve our customers," Anthony Labozzetta, president and CEO of Provident, said in a press release announcing the deal.

Washington Federal and Luther Burbank

Washington Federal, which is based in Seattle, agreed in November to buy Luther Burbank Corp. in Santa Rosa to expand into California. The $645 million, all-stock deal could close as soon as the second quarter of 2023. The combined institution would have about $29 billion of assets, $23 billion of loans and $22 billion of deposits with 210 locations in Washington, California, Oregon, Idaho, Utah, Nevada, Arizona, New Mexico and Texas. Luther Burbank operates 10 branches in California and one in Washington. It also has six loan production offices in California and one in Oregon. "One thing I have learned is that you do not find the right deal — the right deal finds you. That is the case here," Brent Beardall, president and CEO of Washington Federal, said in a release announcing the deal.

Seacoast Banking Corp. of Florida and Professional Bank

Seacoast Banking Corp. of Florida, a prolific buyer, struck its biggest deal to date in August — a $488.6 million buyout of Professional Bank. Seacoast, a $10.8 billion-asset bank in Stuart, Florida, said the deal would bolster its footprint in the Greater Miami area. Professional Bank, the sixth-largest lender headquartered in South Florida, operates nine branches across Miami-Dade, Broward and Palm Beach counties. Collectively, these markets make up the eighth largest market in the nation, Seacoast noted in a release announcing the deal. The $2.7 billion-asset Professional Bank has deposits of approximately $2.4 billion and loans of $2.0 billion. The deal is expected to close in the first quarter of 2023. "We will add significant scale in one of the best banking markets in the country," Charles Shaffer, Seacoast's chairman and CEO, said during a recent call with analysts.

Prosperity and First Bancshares of Texas, Lone Star State Bancshares

Prosperity Bancshares in Houston agreed to acquire two Lone Star State community banks for $570 million in cash and stock. The deals, announced in October, would deepen the company's West Texas footprint, executives said. The $37.4 billion-asset Prosperity said it would pay $341.6 million for First Bancshares of Texas in Midland, which has assets of $2.1 billion, and $228.7 million for Lone Star State Bancshares in Lubbock, which has $1.3 billion of assets. The former marked the fifth-largest deal of the year, while the latter was the ninth largest. Both deals are expected to close in the first quarter of 2023. "By doing both of these together we can really bolster our presence in that region," Cullen Zalman, Prosperity's senior vice president of banking and corporate activities, said in a recent interview.