Articles
Nov 06, 2025
Texas bank M&A surge drives monthly deal value to highest level in over 6 years
06 Nov, 2025 Texas bank M&A surge drives monthly deal value to highest level in over 6 years By Gaby Villaluz and Zuhaib Gull US bank monthly deal value reached its highest point in over six years thanks to a spurt of bank M&A in Texas, including two multibillion-dollar transactions. October saw 21 US bank deal announcements worth a combined $21.42 billion in deal value, the largest monthly total since February 2019 when 16 deals worth a combined $28.58 billion were announced. The spurt of activity has already inflated the fourth quarter's total deal value to the highest level since the last quarter of 2021, surpassing the four-year high seen in the third quarter. US bank M&A is showing no signs of slowing down. During bank earnings calls last month, many executives expressed enthusiasm in making acquisitions, citing less stringent regulatory oversight under the Trump administration as one of the catalysts in the resurgence of dealmaking. Everything is bigger in Texas Several sizable Texas deals largely contributed to the surge. Fifth Third Bancorp's $10.85 billion announced acquisition of Dallas-based Comerica Inc. made up half of the month's total deal value. The Fifth Third-Comerica tie-up also ranks as the largest US bank deal announced since 2021, and the first bank transaction with a deal value exceeding $10 billion since the same year. Huntington Bancshares Inc.'s $7.59 billion purchase of Cadence Bank, which has dual headquarters in Houston and Tupelo, Mississippi, made up 35% of the month's total deal value. On the same day, FirstSun Capital Bancorp announced its $747.2 million acquisition of Dallas-based First Foundation Inc. Altogether, there were six deals targeting Texas-based institutions in October, totaling $19.59 billion in deal value. Among the 20 largest US bank deals announced so far this year, seven involve Texas-based targets. Other Texas deals announced during the month included Houston-based Prosperity Bancshares Inc.'s $269.5 million purchase of San Antonio-based Southwest Bancshares Inc.. The transaction marks Prosperity's second bank deal this year as it doubles down in San Antonio after its announced acquisition of Corpus Christi, Texas-based American Bank Holding Corp. in July for $327.6 million. Humble, Texas-based Third Coast Bancshares Inc.'s $123.0 million purchase of Bee Cave, Texas-based Keystone Bancshares Inc. was announced Oct. 22. According to Third Coast's top executive, the transaction, which is expected to close during the first quarter of 2026, could make the company a more attractive buyer. After Texas, Illinois saw the second-most deals during October with three announcements, including HBT Financial Inc.'s $170.2 million purchase of Carlinville, Illinois-based CNB Bank Shares Inc. and ServBanc Holdco Inc's $91.2 million acquisition of Watseka, Illinois-based IF Bancorp Inc. – 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 The Lone Star State maintained its position as the most-targeted state in the country with 21 target banks so far in 2025, followed by the Prairie State with 13 target banks. Despite the Texas M&A surge, the Midwest is the most targeted region so far this year, home to 60 target banks. Meanwhile, South Central had 31 target banks, followed by the Southeast with 29, making them the second- and third-most targeted regions, respectively. Most expensive deals As bank M&A activity increases, pricing is rising too. Among the 20 most expensive US bank deals so far this year, one-fourth were announced in October. Huntington's planned purchase of Cadence was the most expensive deal announced last month with a deal value to tangible common equity of 170.0%, above the industry median of 150.3%. Texas deals also stood out among the priciest transactions this year, making up four of the top 20.
