Banks

Mercer Capital is the nation’s leading financial institution valuation and advisory firm. Mercer Capital assists banks, thrifts, credit unions, and other depository institutions with significant corporate valuation requirements, transaction advisory services, financial reporting, and litigation support services

Recent Work

U.S. Banks

Numerous valuations for transactions with tax compliance implications, such as income, gift, and estate tax

U.S. Banks (Sell Side)

Managing marketing processes that resulted in the sale of community banks to larger publicly traded institutions

Portfolio Valuations

Valuations of equity (common and preferred), debt, and esoteric structured securities issued by banks and held by investment fund clients

U.S. Banks

Valuations for purposes of shares issuances and redemptions, including both voluntary and involuntary transactions

U.S. Banks - Independent Fairness Opinion

Independent fairness opinions on behalf of the board of directors in situations with potential conflicts of interest

Loans

Numerous valuations of loan portfolios with unpaid principal balances of less than $100 million to over $10 billion for financial reporting related to business combinations and periodic fair value disclosures

U.S. Banks

Valuations of loan portfolios and other financial instruments for transactions triggering tax reporting obligations

Investment Management Industry

Due diligence and advisory services to banks executing acquisitions of registered investment advisory firms, trust operations, and similar entities

Goodwill

Determination of the fair value of reporting units for purposes of completing goodwill impairment tests

Mercer Capital is a nationally recognized valuation and advisory firm with deep experience serving banks and other depository institutions. For decades, we have worked with banks of all sizes—community institutions and large, complex organizations alike—providing independent, well-supported analyses that meet regulatory, financial reporting, transaction, and strategic needs.

Our work for banks is grounded in rigorous valuation methodology, a thorough understanding of banking operations and balance sheets, and practical insight into regulatory and accounting frameworks. We routinely assist bank boards, management teams, auditors, attorneys, and regulators by delivering clear, defensible opinions supported by industry-specific data and analysis.

Our professionals combine technical expertise with clear communication, ensuring that complex valuation issues are explained in a way that supports informed decision-making. With a nationwide client base and thousands of completed engagements for depository institutions, Mercer Capital is a trusted independent advisor to banks navigating both routine and high-stakes valuation and advisory matters.

Bank Valuation & Advisory Services

Decades of Experience and Expertise.

Valuation Services for Banks

Mercer Capital pairs analytical rigor with industry knowledge to deliver unique insight into issues facing banks.

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Transaction Advisory Services for Banks

In addition to valuation services, Mercer Capital provides transaction advisory and financial advisory services to banks, thrifts, and credit unions.

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Litigation Support for Banks

Mercer Capital brings analytical resources and over 40 years of experience to the field of dispute analysis and litigation support.

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Financial Reporting for Banks

Mercer Capital provides independent financial reporting valuations for banks for various purposes.

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Stress Testing Services for Banks

You can rely on the industry expertise and analytical rigor of Mercer Capital for your stress testing needs.

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Relevant transactions

Results that matter.

See how we've helped clients navigate complex transactions and demanding valuation assignments across industries and deal types.

Levo/Heritage
Levo/Heritage
Progressive/B1
Progressive/B1
Y12/FSB
Y12/FSB
Palmetto/Southern Bank
Palmetto/Southern Bank
One America/Hopetown
One America/Hopetown
Nusenda/Western Heritage
Nusenda/Western Heritage
Frist Missouri/Clay County
Frist Missouri/Clay County
First Community/Umpqua
First Community/Umpqua
CEFCU/Simmons
CEFCU/Simmons
Advia/Golden Eagle
Advia/Golden Eagle
Simmons/First Texas
Simmons/First Texas
Advia/Peoples Bank
Advia/Peoples Bank

Frequently Asked Questions

While there are pros and cons to each, we think you typically need both.  Ideally, a firm that has both industry as well as valuation expertise is the smart choice.  Mercer Capital has deep bank industry expertise and is a recognized thought leader in the valuation profession.  Approximately half of our annual valuation engagements involve financial services companies. Our team is highly experienced, and the leaders who oversee bank-related projects typically have more than 20 years of valuation and financial institution industry expertise.

Our advantages include the following:

  • We regularly handle similar engagements and have extensive banking industry experience. Mercer Capital annually handles several hundred projects involving financial services companies. 

  • We have an experienced staff. Project leaders for bank engagements typically have over 20 years of valuation and financial institution industry experience.

  • We provide thought leadership on issues facing financial institutions, including our monthly BankWatch publication and quotations in industry publications such as American Banker and S&P Capital IQ.

  • Mercer Capital follows professional appraisal standards.

  • We have the expertise and experience to handle special projects as needed, such as transaction advisory, transaction opinions (such as fairness or solvency opinions); and valuations in the context of both voluntary and involuntary transactions.

  • Mercer Capital has experience providing independent valuation opinions regarding the fair value of financial assets, intangible assets, and liabilities obtained in business combinations for financial statement reporting purposes.  These services include valuations of loans, core deposit and other customer relationship intangible assets, CD portfolios, and various borrowings.

  • For loan portfolios, valuation analyses consider loan portfolio characteristics (such as loan balances, weighted average coupons, variable or fixed rate structure, future repricing data for variable/adjustable loans, and weighted average maturities); prepayment rates; likelihood of default and loss given default, and discount rates.

  • For the core deposit and other customer relationship intangible assets, the analysis considers the nature of the customer relationships and their retention characteristics; the economic benefits derived from the acquired customer relationships; and a discount rate to derive the present value of the cash flows over the estimated life of the deposit base.

  • Mercer Capital is a leading independent ESOP advisory firm with decades of experience serving banks and financial institutions. We provide ESOP valuations, feasibility consulting, and fairness opinions that meet regulatory and fiduciary standards.

  • Our independence ensures objective, data-driven guidance for ESOP trustees. With deep expertise in corporate finance banking industry matters, and valuation, Mercer Capital delivers comprehensive support through every phase of the ESOP lifecycle—from exploration to post-transaction advisory.

  • Clients choose Mercer Capital because of our credibility, technical rigor, and commitment to long-term relationships. Whether you’re exploring feasibility or maintaining an established ESOP, our team provides clarity, compliance, and confidence at every step.

Key Contacts

Newsletter

Bank Watch Newsletter

Brought to you by the Financial Institutions Team of Mercer Capital, these monthly newsletters are focused on bank activity in five U.S. regions. Each edition of Bank Watch highlights various banking metrics, including public market indicators, M&A market indicators, and key indices of the top financial institutions in your region, providing insight into financial institution valuation issues.

RESOURCES

Banks Whitepaper Library

Mercer Capital’s whitepaper library for banks offers practical insight into valuation, mergers and acquisitions, capital planning, and strategic issues facing community banks and other depository institutions. Our whitepapers draw on decades of experience advising banks across a wide range of asset sizes, ownership structures, and economic environments. Each paper is designed to address complex topics in a clear, accessible manner, providing bank directors, management teams, and their advisors with thoughtful analysis, industry data, and actionable perspective to support informed decision-making.

Community Bank Valuation
WHITEPAPER | Community Bank Valuation
Key Considerations in the Valuation of Banks and Bank Holding CompaniesThis whitepaper focuses on the two issues most central to our work with depository institutions at Mercer Capital:What drives value for a depository institution?How are these drivers distilled into a value for a given depository institution?In this whitepaper, we dive into the more technical valuation issues, but at its core, value is a function of the following:A specified financial metric or metricsGrowthRisk
Community Bank Mergers: Creating the Potential for Shared Upside
WHITEPAPER | Community Bank Mergers: Creating the Potential for Shared Upside
In this 2013 whitepaper we review financial issues arising when community banks merge or sell to a larger, public institution. It is not intended to answer every question and, in some instances, our intention is to raise questions for directors and managers to evaluate. In a series of follow-up papers and webinars we will address specific topics that merit further scrutiny.
Community Bank Stress Testing
WHITEPAPER | Community Bank Stress Testing
Despite the lack of legal requirements for community banks to perform stress tests, recent regulatory commentary suggests that community banks should develop and implement some form of stress testing on at least an annual basis.While not prescriptive in regards to the particular stress testing methods, the guidance suggests a wide range of effective methods depending on the bank’s complexity and portfolio risk. The guidance also notes that stress testing can be applied at various levels of the organization including transactional level stress testing, portfolio level stress testing, enterprise-wide level stress testing, and reverse stress testing.In order to have a better understanding of the stress testing process, this whitepaper walks through an illustrative example of the primary steps to construct a “top-down” portfolio-level stress test. These steps include determining appropriate the economic scenarios, segmenting the loan portfolio and estimating losses, estimating the impact of stress on earnings, and estimating the stress on capital.

Additional Insights

January 2026 | Some “Slop” About 2025 Bank Stock Performance
Bank Watch: January 2026

Some “Slop” About 2025 Bank Stock Performance

Small-cap bank stocks delivered a so so 2025. Despite solid earnings growth, small-cap bank valuation multiples remain below long-term averages, reflecting a gap between bank performance metrics and investor sentiment. Large-cap banks continued to outperform small-caps, as well as the broader market, due to strong capital markets activity.
December 2025 | Bank M&A in 2026 May Have a 1990s Vibe
Bank Watch: December 2025

Bank M&A in 2026 May Have a 1990s Vibe

Bank M&A activity in 2025 returned to a more normal pace, with announced deals rising to 176 and disclosed deal value jumping to $49 billion, supported by improved pricing, stronger bank valuations, and faster regulatory approvals. Large regional bank transactions, including Fifth Third–Comerica and Huntington’s acquisitions, signaled a more favorable and permissive environment that could resemble the consolidation wave of the late 1990s. Looking ahead to 2026, stable economic conditions, healthier bank profitability, and supportive equity markets suggest M&A activity could remain strong, though outcomes will depend on market performance and pricing discipline.
November 2025 | Top Three Questions for Potential Bank Acquirers
Bank Watch: November 2025

Top Three Questions for Potential Bank Acquirers

Community bank M&A accelerated in 2025, with deal volume, values, and pricing all rising amid a more favorable regulatory climate and continued economic expansion. If these trends continue, 2026 could offer attractive opportunities for banks exploring strategic options. Against this backdrop, acquirers should focus on strategic fit, realistic valuation, and the pro forma impact of any potential transaction.
October 2025 | The New Frontier of Consumer Credit: Banks vs. Fintechs
Bank Watch: October 2025

Evaluating the Buyer’s Shares and The New Frontier of Consumer Credit: Banks vs. Fintechs 

Bank M&A activity has surged in 2025, with roughly 175 transactions expected by year-end. For selling shareholders, deal consideration often includes the buyer’s stock—raising important questions about the investment merits of those shares. Understanding liquidity, profitability, valuation, and capital management is critical, yet often overlooked. Mercer Capital outlines key factors boards should consider when evaluating a buyer’s shares and highlights why “value” deserves as much attention as “price.”
September 2025 | 2025 Core Deposit Intangibles Update
Bank Watch: September 2025

2025 Core Deposit Intangibles Update

Core deposit intangible (CDI) values have remained relatively stable in 2025. As deposit mix, rate outlook, and funding pressures continue to evolve, understanding the unique drivers of your institution’s deposit base is critical. In our latest analysis, Mercer Capital examines recent trends in CDI values, deposit premiums, and what they may signal for banks moving forward.
August 2025 | 2025 Mid-Year Market Update
BankWatch: August 2025

2025 Mid-Year Market Update

Bank stocks have staged a strong recovery in 2025, with the Nasdaq Bank Index up 16.2% year-to-date and larger banks leading gains amid a “flight to quality.” Net interest margins continue to improve for most institutions, supported by a stable rate environment and expectations of further Fed cuts. M&A activity is also on the rise, with deal volume already surpassing 2024 levels by mid-year. In this month's Bank Watch newsletter, we discuss these market trends, net interest margin expansion, and what shifting interest rates could mean for bank performance and M&A activity going forward.
July 2025 | From Disruption to Deposits: What Circle’s Rise Signals for Banks
Bank Watch: July 2025

From Disruption to Deposits: What Circle’s Rise Signals for Banks

As Stablecoins move from the fringes of finance to the center of regulatory and market attention, banks face a familiar but evolving challenge to their deposit base. Nearly 50 years after the introduction of the cash management account, Circle’s IPO and the passage of the GENIUS Act may mark a new inflection point. With investor enthusiasm high and policymakers signaling support, traditional institutions will need to evaluate how, and how quickly, they respond to the rise of tokenized money.
June 2025 | Fairness Opinions: Evaluating a Buyer’s Shares from the Seller’s Perspective
Bank Watch: June 2025

Fairness Opinions: Evaluating a Buyer’s Shares from the Seller’s Perspective - 2025 Update

While bank M&A activity has been steady in 2025, boards evaluating offers should look beyond headline prices to scrutinize the real value of consideration—especially when deals are paid in acquirer stock. A high stock price can make a transaction look attractive, but it also masks risks tied to dilution, liquidity, and the buyer’s future performance. Fairness opinions, detailed due diligence, and a clear-eyed assessment of the acquirer’s shares are essential to protect selling shareholders from unpleasant surprises once the deal closes.
May 2025 | Dividends and Shareholder Returns: A Ten-Year Lookback
Bank Watch: May 2025

Dividends and Shareholder Returns | A Ten-Year Lookback

With investors favoring dividend-paying funds amid equity market volatility, we examined the role of dividends in bank shareholder returns over the past decade. While dividends made up a significant portion of total returns, especially in a middling decade for bank stocks, our analysis shows they are not the sole driver. Long-term shareholder value is still rooted in growing earnings and book value—even in uncertain times.
April 2025 | Mortgage Banking’s Next Chapter
Bank Watch: April 2025

Mortgage Banking’s Next Chapter: Is a Recovery Taking Root?

After years of booming mortgage profits driven by ultra-low rates, the industry has faced a prolonged slump amid stubbornly high mortgage rates and weakened housing demand. Despite rate cuts by the Fed, affordability remains strained, and mortgage volumes lag forecasts. However, transaction volume is expected to pick up despite high rates while home prices remain flattish, which should serve to boost mortgage originations. Major moves by Rocket Companies, including acquisitions of Redfin and Mr. Cooper, hint that the worst may be over and a recovery in mortgage banking could be taking shape.
March 2025 | Profitability, Growth and Valuation
BankWatch: March 2025

Profitability, Growth and Valuation

After a strong 2H24, community and regional bank stocks are down 5% in Q1 2025 and are down about 15% from late November when bank stocks peaked in a run that started mid-year. Valuations for individual stocks, a sector such as banking and the overall market will ebb and flow with a variety of factors, but ultimately earnings and earnings growth are the mother’s milk of investing. One asset manager years ago provided a useful framework to think about profitability, growth, and valuation as a framework for stock selection.
February 2025 | A Cautiously Optimistic Outlook for Bank M&A
Bank Watch: February 2025

A Cautiously Optimistic Outlook for Bank M&A: AOBA 2025 Recap

The 2025 Acquire or Be Acquired (AOBA) Conference in Phoenix reflected a renewed sense of optimism for the banking industry. With small-cap banks rebounding in late 2024 and earnings growth on the horizon, the outlook for M&A is improving. Increased capital market activity, pent-up demand from buyers and sellers, and a shifting regulatory environment all signal a potential acceleration in bank deals this year.Read our full breakdown of AOBA’s key themes and insights in this month’s BankWatch.
January 2025 | 2024 Recap: Bank Stock Performance
Bank Watch: January 2025

2024 Recap: Bank Stock Performance

After the turbulence caused by rising interest rates and regional bank failures, 2024 marked a turning point for community and regional bank stocks. The S&P Small Cap Bank Index surged 23% in the second half of the year, buoyed by optimism around net interest margins and a friendlier regulatory environment. However, challenges remain for smaller banks in 2025, such as weak loan growth and higher-for-longer short-term interest rates that may limit NIM expansion. Meanwhile, larger banks look poised to benefit from rising capital markets activity. While the outlook for bank earnings in 2025 is positive, this should be viewed in the context of a richly valued stock market where index fund and ETF outflows pose a threat to bank stock performance. We look back on 2024 performance and consider factors that may influence bank stock performance in 2025.
December 2024 | Bank M&A 2024: Off the Bottom
Bank Watch: December 2024
In this issue: Bank M&A 2024 — Off the Bottom
November 2024 | Moo Deng’s Post-Election Outlook for the Banking Industry
Bank Watch: November 2024
In this issue: Moo Deng’s Post-Election Outlook for the Banking Industry
October 2024 | Fed Rate Cut(s) – Now What?
Bank Watch: October 2024
In This Issue: Fed Rate Cut(s) – Now What?
September 2024 | 2024 Core Deposit Intangibles Update
Bank Watch: September 2024
2024 Core Deposit Intangibles Update
August 2024 | 2024 Mid-Year Market Update & Equity Capital Raises
Bank Watch: August 2024
In this issue: 2024 Mid-Year Market Update & Equity Capital Raises
July 2024 | Economic Pressure on Commercial Real Estate Sector
Bank Watch: July 2024
In this issue: Economic Pressure on Commercial Real Estate Sector
June 2024 | March 2000 vs. June 2024: How Different Is It?
Bank Watch: June 2024
In this issue: March 2000 vs. June 2024: How Different Is It?
May 2024 | Is It Time to Eat the Golden Goose?
Bank Watch: May 2024
In this issue: Is It Time to Eat the Golden Goose?
April 2024 | Now Could Be a Great Time for Bank Investors to Consider Estate Planning
Bank Watch: April 2024
In this issue: Now Could Be a Great Time for Bank Investors to Consider Estate Planning
March 2024 | Capital One Financial Corporation to Acquire Discover Financial Services
Bank Watch: March 2024
In this issue: Capital One Financial Corporation to Acquire Discover Financial Services and NYCB Incurs Heavy Dilution in Its $1.0 Billion Capital Raise
February 2024 | Themes from AOBA and Pay vs. Performance: What’s New in Year 2
Bank Watch: February 2024
In this issue: Themes From the 2024 Acquire or Be Acquired Conference and Pay vs. Performance: What’s New in Year 2
January 2024 | The Tangled Path to Banking’s Garden of Earthly Delights
Bank Watch: January 2024
In this issue: The Tangled Path to Banking’s Garden of Earthly Delights
December 2023 | Bank M&A 2023
Bank Watch: December 2023
In this issue: Bank M&A 2023—Subdued But Potentially Explosive
November 2023 | It’s Getting Real(ized)
Bank Watch: November 2023
In this issue: It’s Getting Real(ized)
October 2023 | Specialty Finance M&A
Bank Watch: October 2023
In this issue: Specialty Finance M&A
September 2023 | This Interest Rate Environment Done Got Old
Bank Watch: September 2023
In this issue: This Interest Rate Environment Done Got Old
August 2023 | 2023 Core Deposit Intangibles Update
Bank Watch: August 2023
In this issue: 2023 Core Deposit Intangibles Update
July 2023 | Bank Impairment Testing
Bank Watch : July 2023
Bank Impairment Testing
June 2023 | Net Interest Margin Trends for Banks Versus Credit Unions
Bank Watch: June 2023
In this issue: Key Considerations in the Valuation of Banks and Bank Holding Companies and Net Interest Margin Trends for Banks Versus Credit Unions
May 2023 | Merger Arbitrage and Valuation
Bank Watch: May 2023
In this issue: Merger Arbitrage and Valuation
April 2023 | What Are Bank Stocks Telling Investors?
Bank Watch: April 2023
In this issue: What Are Bank Stocks Telling Investors? and First Republic Bank & The Asymmetry of Banking
March 2023 | I’m Not Broke. I’m Just Not Liquid
Bank Watch: March 2023
In this issue: “I’m Not Broke. I’m Just Not Liquid.”
February 2023 | Themes 2023 Acquire or Be Acquired Conference and Pay vs. Performance
Bank Watch: February 2023
Themes from Bank Director’s 2023 Acquire or Be Acquired Conference
January 2023 | 2022 Bank Stock Performance Recap
Bank Watch: January 2023
In this issue: 2022 Bank Stock Performance Recap
December 2022
December 2022

In this issue: Bank M&A 2022 — TurbulenceThe outlook for deal making in 2023 is challenged by significant interest rate marks, uncertain credit marks given a potential recession and soft real estate values, and the bear market for bank stocks that has depressed public market multiples. However, core deposits and excess liquidity of potential sellers is highly prized today given tight balance sheet liquidity and an inability to sell bonds to generate liquidity given sizable unrealized losses. A rebound in bank stocks and even a modest rally in the bond market that lessens interest rate marks could be the catalysts for an acceleration of activity in 2022 provided any recession is shallow.
November  2022
November 2022
In this issue: Community Bank Loan Portfolios Have Unrealized Losses Too and Bond Portfolio Update
October 2022
October 2022
In this issue: How Are Tech-Forward Banks Performing?
September 2022
September 2022
In this issue: 2022 Core Deposit Intangibles Update
August 2022
August 2022
In this issue: NIB Deposits Anesthetize Bond Pain
July 2022
July 2022
In this issue: Strategic Benefits of Stress Testing in an Uncertain Economic Environment
June 2022
June 2022
In this issue: Bond Pain and Perspective on Bank Valuations
May 2022
May 2022
In this issue: Specialty Finance Acquisitions
April 2022
April 2022

In this issue: Statutory Fair Value vs Fair Market Value (and Fair Value): Not So Subtle Differences
February 2022
February 2022
In this issue: Acquire or Be Acquired (AOBA) 2022: Review & Recap
March 2022
March 2022
In this issue: First Quarter 2022 Review: Volatility Resurfaces
January 2022
January 2022
In this issue: Net Interest Margin Trends and Expectations