Bank Stock pricing dipped slightly while the S&P remained relatively flat during November when the presidential election took center stage then quickly shifted to the “fiscal cliff” negotiations. Pricing so far in the fourth quarter has been down for both banks and the broader markets although pricing was up year-to-date due to robust pricing during the first quarter of 2012.
Despite lack luster loan demand and fierce competition for strong credits, banks have returned to profitability through September 30, 2012 generally due to lower provision expense and declining cost of funds. Across all regions, bank pricing at November 30, 2012 on September 30, 2012 tangible capital was up with banks in the Southwest leading at a median price to tangible capital multiple of 1.42x. The Southeast region continued to lag the nation with a median price to tangible capital of 1.03x while the bank in New England, West, Midwest and Mid-Atlantic by region averaged a combined 116.8x of tangible capital.
More information regarding nationwide M&A activity can be found here.