Bank M&A deal tracker: Number of transactions dips at start of 2026

The sale of Webster Financial Corp. has helped prop up the total deal value of US bank M&A, though the number of transactions at the start of the year has slowed relative to the end of 2025.

Two months into the first quarter, 25 US bank deals were announced, with an aggregate deal value of $15.11 billion. This compares to 51 deals with a combined $26.34 billion during the full fourth quarter of 2025 and 56 deals with a combined $16.67 billion for the entire third quarter of 2025. About 81% of the first quarter's total deal value can be attributed to Banco Santander SA's announced $12.23 billion acquisition of Stamford, Connecticut-based Webster.

Big Northeast deals

The Webster deal, which is Santander's first US retail bank acquisition in roughly 17 years, is the third-biggest US bank deal since 2010. This helps put the quarter on pace to record the second-highest total transaction value since 2021, trailing only the fourth quarter of 2025.

The third- and fifth-largest deals announced so far in 2026 also involved Northeast banks: Fairlawn, New Jersey-based Columbia Financial Inc.'s $596.6 million acquisition of Woodbridge, New Jersey-based Northfield Bancorp Inc., in which Columbia's majority owner, Columbia Bank MHC, will undergo a second-step conversion in conjunction with the deal; and Glens Falls, New York-based Arrow Financial Corp.'s $89.1 million purchase of Utica, New York-based Adirondack Bancorp Inc.

– 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 state, region

Four deals with target banks headquartered in the Midwest were announced in February, including Rochester, Minnesota-based Olmsted Holding Corp.'s purchase of Jordan, Minnesota-based Riverland Bancorp. and Bethany, Missouri-based Bethany Bankshares Inc.'s acquisition of Glasgow, Missouri-based Bancshares of Glasgow Inc. and its subsidiary Tri-County Trust Co. Previously, Bethany Bankshares also announced the purchase of Latham Bancshares Inc. in December 2025.

The Midwest is the most targeted region so far in 2026 with 13 target banks, while Minnesota is the most targeted state with three banks, followed by Missouri with two.

Oregon had its first target bank for the year with Mountlake Terrace, Washington-based FS Bancorp Inc.'s $34.4 million acquisition of West Linn, Oregon-based Pacific West Bancorp., announced Feb. 25.

M&A outlook

Bank consolidation is expected to continue, driven by buyers with strong currencies seeking to scale up and sellers facing rising costs, according to Jefferies analysts.

In addition, some believe Washington, DC's more accommodative policy environment, which has been leading to faster approval timelines, gives banks more reason to strike a deal and move above critical regulatory thresholds.