Recent high-profile M&A deals in the banking space prompted Oppenheimer analyst Ben Chittenden to release a new report addressing the banking M&A environment. According to Chittenden, 2015 banking M&A is in-line with historical levels, and Oppenheimer expects it to stay that way headed into 2016.

Old Normal

Chittenden reported that the number of annual banking M&A deals has ranged between 200 and 300 deals since 2000. So far in 2015, there have been 244 deals, putting this year right in the middle of the historical range.

In 2015, assets per deal have been on the rise, and Chittenden reported that buyers are getting historically good deals. The average 2015 deal has priced at 1.4x total book value (TBV), well below the historical average premium of 17x TBV.

Rationale Shift

While the rate of M&A activity in banking has been relatively steady since 2000, Chittenden noted…

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