The Texas market for bank mergers and acquisitions is anticipated to pick up in 2023 after a rather quiet 2022 year for the space.
At the end of December an article in the Austin Business Journal narrated the slower M&A year for the banking space. After a record-breaking level of activity in bank deals across the United States in 2018, 2022 was fairly quiet. As shared in ABJ, the S&P Global Market Intelligence sited that there were 149 deals nationwide as of the end of November, down from 193 at the same period last year. In total, 206 agreements were made in 2021. Rising interest rates, inflation and the faltering stock market were the key reasons sited for slow deal making.
If we see a recessionary environment over the next year, we’ll see a greater degree of separation between the larger and smaller players.
Here’s the recap of Texas banking notable deals from ABJ:
- Bancorp acquired Quitman-based BT Holdings for $313.5 million in an all-stock acquisition.
- Prosperity Bancshares Inc. agreed to buy Midland-based First Bancshares of Texas Inc., the parent company of FirstCapital Bank of Texas NA, and Lubbock-based Lone Star State Bancshares Inc. for a combined $570.3 million. The transactions are expected to close in the first quarter.
- Denver-based Sunflower Bank, a subsidiary of FirstSun Capital Bancorp, bought Austin-based Pioneer Bancshares Inc. in March for an undisclosed amount.
- Texas State Bankshares Inc. acquired Denton-based Access Bancorp Inc.
- Harmony Bank and Texas Brand Bank announced plans to merge in September. The deal is expected to close in the first quarter.