Investment banks are reaping the benefits of a recent surge in U.S. credit union-bank M&A deals.
There have already been 18 deals announced since the beginning of 2021 in which a credit union is acquiring a bank. With five deals announced so far in the first quarter of the year, 2022 is on pace to blow past the 2019 figure of 14 deals announced, which is the most in a single year going back to 2015, according to S&P Global Market Intelligence Data.
In total, there have been 57 such deals announced since 2015, providing investment banks with plenty of opportunities to boost their advisory revenue figures.
Peter Duffy, a managing director at Piper Sandler Cos. who has extensive experience working with credit unions, has noticed over the past few years that more investment banks are looking to advise credit union-bank deals
"Prior to say three to five years ago, your typical investment bank wasn't very involved. Now there are more of them involved which speaks to the opportunity," Duffy said in an interview.
McQueen Financial Advisors II Inc. has landed 26 credit union-bank M&A deals since 2015, which is the most of any investment bank in that timeframe, while Hovde Group LLC falls just behind with 21 deals, having advised the bank side on all 21 deals, according to Market Intelligence data.
