Bank Stock Performance – Bank stock pricing remained strong during the first quarter of 2013.
Bank stock indices jumped significantly in January after 2012 ended with the threat of a “fiscal cliff” and an increase in investment taxes. February continued the improvement in bank stocks with double digit improvements in all of the SNL Bank Indexes by size with the exception of banks under $250 million. March ended on a particularly strong note as the 2012 fourth quarter GDP adjusted upward to reflect growth of 0.4%, non-residential fixed investments improved and employment levels reflected a modest expansion in hiring.
From a regional perspective the New England (142%) and Southwest (137%) banks continued to have the highest median pricing on tangible book levels with the Southeast reporting the most improvement in price relative to tangible book while remaining the lowest at 118%. The median pricing for all other regions improvement during the first quarter (Mid-Atlantic to 124%, Midwest to 123% and the West to 126%) except for the Southwest which dropped from a high of 139% at year-end 2012. From an earnings perspective, all regions reported an increased in median pricing multiples since year-end with the Southwest reporting the highest median price to earnings multiple at 14.7x which was followed by the West at 14.5x while the Midwest came in the lowest at 11.7x.
Below, you will find more regional bank pricing and performance information. For M&A pricing click here.
More information regarding nationwide M&A activity can be found here.Back to the Knowlege Center