KBW, which specializes in banks, named 38 potential buyers, 26 possible sellers and 11 buyers that could become sellers. Targets include Boston Private Financial Holdings Inc. of Boston, Susquehanna Bancshares Inc. of Lititz, Pennsylvania, and Wilmington Trust Corp. of Wilmington, Delaware.
Takeover valuations will be one-third lower than during the last merger binge of 2000 to 2007, according to KBW. Prices will be about 15 times long-term annual earnings and 1.5 times tangible book value, KBW said.
Spokesmen for banks named as targets declined to comment or didn't respond to inquiries.
More Deals
U.S. Bancorp will continue to "opportunistically acquire," Chief Executive Officer Richard K. Davis said in a July conference call. Recent weakness in the economy could make other banks more interested in selling, Davis said.
PNC finished integrating National City branches and accounts in June, six months ahead of plan, CEO James E. Rohr said in a July conference call. PNC's confidence that it can digest another bank "is higher than it has ever been," Rohr said.
JPMorgan's focus is on growing without acquisitions, said Thomas Kelly, a bank spokesman. Bank of America's Scott Silvestri referred to repeated comments by CEO Brian T. Moynihan that the Charlotte, N.C.-based company won't pursue acquisitions. Mark Costiglio, a spokesman for New York-based Citigroup, and Mary Eshet, at San Francisco-based Wells Fargo, declined to comment.
Foreign Bidders
While the biggest banks are sidelined, competition may emerge from Canada and Europe. Banco Santander SA has been stalking Buffalo-based M&T Bank Corp., according to the Financial Times, while Bank of Montreal and Royal Bank of Canada said they may expand in the U.S.
Takeovers will start with smaller banks, said Paul J. Miller, an analyst at FBR Capital Markets Corp. in Arlington, Va., and a former examiner for the Philadelphia Federal Reserve Bank.