Bank M&A deal tracker: Q1 2026 on pace for highest value in 7 years

US bank M&A activity jump-started the new year with two $1 billion-plus deals announced in the span of one week.

On Feb. 3, Banco Santander SA announced the acquisition of Stamford, Connecticut-based Webster Financial Corp. for $12.18 billion, making it the largest US bank M&A deal since BMO Bank NA announced an acquisition of Bank of the West in 2021 for $16.30 billion. The Webster deal followed the Jan. 28 announcement of Prosperity Bancshares Inc.'s $2.02 billion acquisition of Stellar Bancorp Inc., a transaction that ranks as the seventh largest since 2025.

Those two transactions helped push the total deal value of US bank M&A to $14.94 billion in the first quarter through Feb. 3. With just a little over a month into 2026, the total value of US bank M&A for the first quarter is on pace to surpass the 2025 fourth-quarter total of $26.32 billion, which was the highest mark since 48 US bank deals worth a combined $34.53 billion were announced in the first quarter of 2019.

Big price tags

In the second half of 2025, the announcement of larger bank M&A deals picked up, and the deals for Webster and Stellar Bancorp continue that spurt of activity.

The deals for Webster and Stellar Bancorp were also on the pricier side based on the metric deal value-to-tangible common equity ratio. The Webster deal ranked as the eighth-most expensive since 2025, with a deal value-to-tangible common equity ratio of 203.1%, and the Stellar Bancorp sale had a deal value-to-tangible common equity ratio of 180.8% making it the 12th-most expensive US bank deal announced since 2025.

Analysts view the price for Webster as fair, and Madrid-based Banco Santander SA hopes the deal can improve profitability of its US banking unit. Prosperity said the hefty price tag to acquire Stellar Bancorp is justified by the earnings it will deliver and the boost to its fundamental value in the competitive Texas market.

Prosperity ramps up bank buys in Texas

The Stellar deal was Prosperity's second-largest bank deal after its $2.08 billion acquisition of LegacyTexas Financial Group Inc., and its seventh consecutive bank purchase in the Lone Star State since 2015.

Of the 35 whole-bank deals announced by Prosperity since 1998, 33 target banks were headquartered in Texas, while the remaining two were located in Oklahoma. In addition to the Texas whole-bank deals, the serial acquirer purchased three failed banks in the state: Citizens National Bank, Buchel Bank and Trust and Franklin Bank SSB.

Recently, the Houston-based bank completed its $327.6 million acquisition of Corpus Christi, Texas-based American Bank Holding Corp. on Jan. 1, and $270.5 million purchase of Southwest Bancshares Inc. on Feb. 1.

– Access a list of pending and completed M&A deals announced since Jan. 1, 2016. – Access the S&P Capital IQ Pro M&A summary page for US financial institutions. – Read more M&A news.

Bank deals by region

Eight deals with target banks headquartered in the Midwest were announced in January, including Dewitt, New York-based Community Financial System Inc.'s $40.0 million acquisition of Batesville, Indiana-based ClearPoint Federal Bank & Trust. The transaction had a deal value-to-tangible common equity ratio of 218.8%, making it the sixth-most expensive US bank deal announced since 2025.

Meanwhile, Fairlawn, New Jersey-based Columbia Financial Inc. announced the $596.6 million purchase of Woodbridge, New Jersey-based Northfield Bancorp Inc. on Feb. 2. The transaction was the 15th-largest US bank deal announced since 2025 and the first bank to be targeted in the Northeast. In conjunction with the deal, Columbia's majority owner, Columbia Bank MHC, will undergo a second-step conversion to a public stock-holding company.

Similarly, the Southeast also had its first target bank with Louisville, Kentucky-based Stock Yards Bancorp Inc.'s $103.2 million acquisition of Henderson, Kentucky-based Field & Main Bancorp Inc. The combined company will cross the $10 billion asset threshold, which will subject the bank to additional regulatory scrutiny, but Stock Yards plans to delay crossing that threshold until 2028 through balance sheet management.

M&A outlook

US bank M&A activity is expected to maintain its momentum in 2026 as institutions take advantage of the conducive dealmaking environment. The improving backdrop on interest rates and a favorable regulatory environment have given some bank executives confidence in pursuing M&A.