In late 2019, Bank Director issued its 2020 Bank M&A Survey. The report was largely positive: 44 percent of firms said they “expect to acquire a bank in 2020,” and 68 percent pointed to the potential for cost savings and revenue as driving factors.
Then COVID-19 arrived. Daily routines were thrown into chaos as the world suddenly shifted to remote work — as noted by American Banker, the number of merger and acquisition agreements fell by 70 percent through June 2020 compared with the year before, with some mergers postponed but most canceled outright. According to Fitch Ratings, current conditions speak to both negative sector and ratings outlooks through Q2 2020, making many banks understandably nervous when it comes to aggressive M&A.
But it’s not all bad news. As public health efforts evolve, there’s hope on the horizon for a slow but steady return to work. Even in the