The wave of bank mergers and acquisitions continued today. Prosperity Bancshares (NYSE: PB) announced an agreement to acquire Stellar Bancorp (NYSE: STEL), creating a $54 billion-asset bank with a strong presence in the fast-growing Houston, Texas market. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks » Prosperity Bancshares will pay roughly $2 billion to acquire Stellar in a part-cash ...

Core Viewpoint - OceanFirst Financial Corp. has agreed to acquire Flushing Financial for $579 million, marking one of the last bank deals of 2025, with the transaction expected to close in Q2 2026 [1][9]. Group 1: Deal Structure and Financials - The merger will create a regional entity with $23 billion in assets and 71 branches across New Jersey, New York, and Philadelphia [2][9]. - OceanFirst's common stock will represent approximately 58% of the merged company, while Flushing stockholders will hold about 30%, and shares issued to Warburg Pincus will account for around 12% [2][9]. - The transaction is projected to result in a tangible book value dilution of about 6%, which is expected to be recovered in roughly three years, with an anticipated earnings per share accretion of about 16% and an internal rate of return of about 24% in 2024 [8]. Group 2: Strategic Rationale and Market Context - The merger is seen as a natural extension of OceanFirst's growth strategy, combining Flushing's presence in Long Island and New York City with OceanFirst's business model [6]. - The past year has witnessed a resurgence in bank consolidation, particularly among small regional and community institutions, with over 170 deals valued at more than $47 billion in 2025 [12]. Group 3: Management and Governance - Upon regulatory and shareholder approval, OceanFirst CEO Christopher Maher will become the chief executive, while Flushing CEO John Buran will serve as non-executive board chairman, with a board comprising 17 directors [10]. - Warburg Pincus will invest $225 million in the combined company, securing a board seat and a 12% ownership stake [9][11].

This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. Huntington Bank’s $7.4 billion acquisition of Cadence Bank received approval from the Office of the Comptroller of the Currency, the Columbus, Ohio-based lender disclosed Monday. That marks the last regulatory green light needed for the transaction, which is expected to close Feb. 1, Huntington said. The timeline meets the bank’s initial projection that the deal wou ...

This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. Dive Brief: Regional bank Huntington isn’t interested in acquisitions that would take it beyond the geographic footprint it’s set to acquire in buying Houston-based Cadence, CEO Steve Steinour indicated last week. The CEO of the Columbus, Ohio-based lender, speaking Dec. 10 at the Goldman Sachs U.S. Financial Services Conference, also said the bank’s appetite for ...

Core Viewpoint - Comerica is facing a lawsuit regarding its $10.9 billion agreement to sell itself to Fifth Third Bancorp, with a judge ordering the bank to provide additional information related to the deal [1][4]. Group 1: Legal Proceedings - The lawsuit, initiated by activist investor HoldCo Asset Management, claims that Comerica rushed the sale process and failed to disclose material information [2][3]. - The judge has mandated that Comerica disclose board materials related to the deal, and HoldCo will have the opportunity to submit written questions to the defendants [2][4]. - A hearing is scheduled to determine if sufficient disclosure was made prior to a shareholder vote, with potential for further hearings post-vote regarding the deal's closure [4][8]. Group 2: Deal Timeline and Context - The merger deal was announced in early October and is expected to close in the first quarter of 2025, although there are indications that it may close sooner [5][11]. - The transaction is noted as the largest bank acquisition announced in 2025 and the quickest among significant transactions this year [10][11]. - Prior to the deal, HoldCo had been critical of Comerica and is now alleging that the sales process was flawed, suggesting that Comerica did not adequately seek the best buyer [12]. Group 3: Market Environment - The current environment for bank mergers and acquisitions is described as favorable, with quicker deal closures compared to previous years, influenced by regulatory changes [7]. - Legal challenges to stock-for-stock deals like this one are less common than those concerning pricing after the deal has closed [6].

Core Viewpoint - Fifth Third Bancorp's acquisition of Comerica for $10.9 billion marks a significant shift in the regional banking landscape, driven by favorable conditions for bank mergers and acquisitions under the Trump administration [1][8]. Group 1: Acquisition Details - The acquisition will create the ninth-largest bank in the U.S., with total assets of $288 billion [2]. - Fifth Third will gain the No. 1 retail-deposit franchise in Michigan and expand its presence in rapidly growing markets like Texas [2]. - Post-acquisition, the combined bank will have over two-thirds of its loan portfolio in commercial real estate and commercial and industrial loans, along with strong fee-based businesses in commercial payments and asset management [3]. Group 2: Financial Implications - Fifth Third asserts that the acquisition will not dilute its tangible book value or net worth, which is a positive indicator for investors [6][8]. - The bank plans to reduce approximately 35% of Comerica's expenses, a common strategy in bank acquisitions [6]. - The deal is projected to be 9% accretive to earnings by 2027 and yield a 22% internal rate of return, assuming no revenue synergies [6]. Group 3: Management Expectations - Management anticipates that the acquisition will enhance Fifth Third's return profile, increasing return on assets to between 1.3% and 1.4%, and return on tangible common equity (ROTCE) to 19% or higher [7].

Core Viewpoint - BMO Financial Group is restructuring its U.S. branch network by selling 138 branches to First Citizens Bank and opening 150 new branches in markets with better growth potential, aiming to enhance profitability in the U.S. [1][9] Group 1: Branch Sale and Acquisition - BMO has agreed to sell 138 branches, approximately 13.7% of its total U.S. footprint, primarily located in the Midwest and Great Plains, to First Citizens Bank [1][9] - The sale requires regulatory approval and is expected to close in mid-2026 [2] - First Citizens will assume about $5.7 billion in deposits and purchase approximately $1.1 billion in loans as part of the acquisition [7] Group 2: New Branch Openings - BMO plans to open 150 new branches over the next five years, focusing on California and other markets where it can achieve greater density [2][3] - The company aims to deepen client relationships and enhance service delivery through this reallocation of resources [3] Group 3: Financial Performance Goals - BMO's goal is to improve its return on equity to 12% within the next three to five years, up from 8% as of July [4] - The bank's underperformance has been attributed to slower-than-expected revenue synergies from the acquisition of Bank of the West and muted loan demand in the U.S. [5] Group 4: First Citizens Bank's Strategy - First Citizens views the acquisition as a means to accelerate growth in new markets and strengthen its deposit franchise, which will enhance liquidity and support strategic initiatives [10] - The acquisition is seen as a creative move to reduce First Citizens' elevated loan-to-deposit ratio following its acquisition of Silicon Valley Bank [11]

Core Insights - Jefferies analyst David Chiaverini identified five potential deals that could significantly enhance profitability for the involved companies [1] Group 1 - The analysis focuses on strategic transactions that are likely to yield the highest profit increases [1]