BUZZ-Slow bank M&A has investors asking for deals, Wells Fargo says

Wells Fargo Securities says a slow start for bank mergers and acquisitions, so far this year, has left investors asking for deals

The slow start is a bit surprising, with only five deals of $50 million-plus announced YTD as of Monday - brokerage

Wells Fargo says the combination of regulatory and interest rate uncertainty, along with higher stock prices, has likely caused both "buyers and sellers to recalibrate"

Brokerage still expects the deal flow to accelerate with passage of time in the new environment, adding that it anticipates 80 deals per year in 2025 and 2026

BankUnited BKU.N, First Horizon FHN.N and Banc of California BANC.N score highest within brokerage's coverage in its consolidation scoreboard

Wells Fargo expects most large banks to be potential buyers, including M&T Bank MTB.N, U.S. Bancorp USB.N, KeyCorp KEY.N and PNC Financial PNC.N

Other buyers could be the larger regional banks, while the vast majority of deals are still likely to occur in the sub-$10 billion in asset range - Wells Fargo