Mirus Capital AdvisorsMirus Capital Advisors

Bank and Thrifts Report: Q4 2020

After plummeting in Q2 due to COVID-19, banking M&A deal volume began to recover in Q3 and Q4. The banking sector has been one of the industries most affected by the pandemic given the risk of default on outstanding consumer and business loans as a result of the pandemic. In aggregate, 2020 banking M&A transaction volume was at its lowest level in six years, but was beginning to approach pre-pandemic levels by Q4.

The outlook for 2021 is optimistic with ongoing recovery expected as vaccinations continue and the economic situation improves. This may be an opportune time for
banks with strong balance sheets and solid loans portfolios to acquire other institutions at attractive multiples.