Bank M&A activity rebounds in March, pushing Q1 2025 total deal value to $1.61B

Thirty-four US bank deals worth a combined $1.61 billion were announced in the first quarter this year, marking the highest first-quarter total by aggregate deal value since 2021, according to S&P Global Market Intelligence data.

By comparison, first-quarter announced deals totaled $1.53 billion in 2022, $433.8 million in 2023 and $796.2 million in 2024.

Fifteen of the quarter's 34 deals were announced in March, with many deal announcements delayed for buyers and sellers waiting for transaction conditions to improve.

Nashville, Tennessee-based FB Financial Corp.Corp. announced its acquisition of Anniston, Alabama-based Southern States Bancshares Inc. for $380.7 million on the last day of the quarter. The deal value-to-tangible common equity ratio was 156.6%. The transaction was the largest and fourth-most expensive US bank M&A deal announced so far in 2025. It marked FB Financial's return to dealmaking, more than five years after the bank announced its $623.1 million purchase of Franklin Financial Network Inc. in January 2020.

The reverse merger transaction of Seattle-based HomeStreet Inc. and Walnut Creek, California-based Mechanics Bank was also announced March 31. With $8.12 billion in total assets as of deal announcement, Homestreet is the largest bank to be targeted so far in 2025. The transaction will expand Mechanics Bank's West Coast footprint and create a combined company with $23 billion in assets.

Previously, Denver-based FirstSun Capital Bancorp announced its purchase of HomeStreet in January 2024, but the banks terminated their merger agreement after regulators blocked the deal.

CU-bank deals announced in March

On March 12, Joliet, Illinois-based NuMark CU said it will acquire substantially all assets and liabilities of Lemont, Illinois-based Lemont National Bank. The transaction marks the fifth bank target headquartered in Illinois this year, making it the most targeted state.

Birmingham, Alabama-based Legacy Community FCU announced its purchase of Cullman, Alabama-based First Community Bank of Cullman on March 18.

The two deals are expected to close in 2025, subject to regulatory approvals.

Bank deals by state, region

On March 11, Bar Harbor, Maine-based Bar Harbor Bankshares announced its purchase of Woodsville, New Hampshire-based Guaranty Bancorp Inc. for $39.9 million, marking the first New Hampshire bank targeted this year.

On March 17, Doraville, Georgia-based MetroCity Bankshares Inc. announced the acquisition of in-state peer First IC Corp. for $206.0 million, in the fourth-largest US bank M&A deal announced so far in 2025 and the largest deal involving a minority depository institution as a buyer since 2019.

The Midwest has been the year's most targeted region, with 13 target banks accounting for almost 40% of all M&A transactions announced. The Southeast had six target banks, making it the second-most targeted region.

– Access a list of pending and completed M&A deals announced since Jan. 1, 2015. – Access the S&P Capital IQ Pro M&A summary page for US financial institutions. – Read more M&A news.

M&A outlook

US bank M&A activity in the first quarter was 'far from the wave' that many expected, but deals are closing faster, according to Hovde Group analyst Brendan Nosal.

First-quarter stock market volatility paused several bank deals, but investment bankers counseled patience, saying bank deals will likely be announced later in the year. However, advisers cautioned that US bank M&A activity may come to a halt if tariff-induced stock plunges continue.

On April 3, Portsmouth, Virginia-based TowneBank announced its $202.1 million purchase of Hampton, Virginia-based Old Point Financial Corp., extending the surge of $100 million-plus deal announcements in early spring.