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KBRA Releases Research – KBRA’s Perspective on Bank M&A: Trends and Ratings Implications

NEW YORK--(BUSINESS WIRE)--KBRA releases research evaluating the current landscape of bank mergers and acquisitions (M&A) and the potential implications for credit ratings.

Following the 2024 U.S. presidential election, a more bank-friendly regulatory environment has spurred renewed M&A activity across the sector, though deal flow to date has been more of a swell than a tsunami. Shortened approval timelines and recent Financial Accounting Standards Board (FASB) changes to M&A accounting, which potentially reduce one-time acquisition charges, have provided added support for transactions. However, scarcity of attractive targets, and higher interest rates, which have caused sizable unrealized securities losses that result in elevated negative accumulated other comprehensive income (AOCI) positions continue to weigh on activity, leaving many institutions cautious. Looking ahead, KBRA expects bank M&A to remain measured in the near term, but activity could potentially accelerate as balance sheet pressures ease and the regulatory landscape evolves.

Click here to view the report.

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About KBRA

KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions.

Doc ID: 1011241

Contacts

John Rempe, Senior Director
+1 301-969-3045
john.rempe@kbra.com

Bain Rumohr, Managing Director
+1 312-680-4166
bain.rumohr@kbra.com

Ian Jaffe, Senior Managing Director
+1 646-731-3302
ian.jaffe@kbra.com

Business Development Contact

Justin Fuller, Managing Director
+1 312-680-4163
justin.fuller@kbra.com

Kroll Bond Rating Agency, LLC

Details
Headquarters: New York City, New York
CEO: Jim Nadler
Employees: 400+
Organization: PRI

Release Versions

Contacts

John Rempe, Senior Director
+1 301-969-3045
john.rempe@kbra.com

Bain Rumohr, Managing Director
+1 312-680-4166
bain.rumohr@kbra.com

Ian Jaffe, Senior Managing Director
+1 646-731-3302
ian.jaffe@kbra.com

Business Development Contact

Justin Fuller, Managing Director
+1 312-680-4163
justin.fuller@kbra.com

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