Surge in U.S. Banking Mergers Driven by Regulatory Changes

In the first half of 2026, 81 banking deals were announced in the U.S., marking the highest first-half count since 2021, according to S&P Global Market Intelligence data.

This wave of mergers follows regulatory changes initiated in May 2025, when the Office of the Comptroller of the Currency reinstated expedited reviews and simplified application processes for bank mergers. Subsequently, in July 2025, the Federal Deposit Insurance Corporation (FDIC) reversed its 2024 policy on mergers, returning to earlier guidelines and enhancing the overall regulatory framework.

As a result of these changes, the average time from deal announcement to completion has significantly decreased, with the median duration dropping from 187 days in 2024 to 134 days in 2025, and further down to 94 days in early 2026, as reported by S&P Global.

Several key deals have highlighted this trend, including Huntington Bancshares' acquisitions of Veritex and Cadence Bank, and PNC's purchase of FirstBank. By the end of 2025, the total value of bank deals reached $26.3 billion, which was the highest quarterly figure since early 2019.

Catherine Mealor, a managing director at Keefe, Bruyette & Woods, noted that banks are strategically considering mergers for succession planning and technological investments. "If you think you might want to sell within the next three or four years, you might as well go now. You can get it closed quickly," she stated.

Additionally, research from PwC revealed that five banking deals exceeding $5 billion were announced in the latest four-quarter period, maintaining aggregate deal values comparable to the previous period, despite a decrease in transaction volume.

Consolidation is also being driven by capital availability. Bain & Co. reported that by the end of June, 17 U.S. lenders each held over $10 billion in excess capital, with seven holding amounts greater than $20 billion. Their research indicated that mergers combining scale with new capabilities led to total shareholder returns that were 14 to 18 percentage points higher compared to scale-only deals over the past two years, amidst rising expenses for technological and AI investments.

Notably, this pursuit of scale is reflected in some of this year’s largest transactions. Santander's acquisition of Webster Financial for $12.2 billion created a bank with assets totaling $327 billion, while Fifth Third's $10.9 billion purchase of Comerica established the ninth-largest bank in the U.S. Additionally, Pinnacle Financial Partners' merger with Synovus resulted in another institution boasting over $120 billion in assets.

However, discrepancies between sellers and buyers regarding valuations persist. The median price paid for bank sellers is approximately 141% of tangible book value, as per Piper Sandler, while 68% of banks surveyed by Bank Director indicated they would seek at least 175% to consider a sale.

Thomas Monteiro is a contributing writer based in Spain.