Bank Merger Activity Stays Steady Despite Early-Year Headwinds

Bank merger activity remained steady in May as the market recovered from earlier setbacks caused by the Trump administration’s policies that had temporarily slowed deals at the start of the year, according to PwC research.

US bank merger activity continued to grow through late 2024 and early 2025, led by two major deals worth over $10 billion announced in March and April. Most of the deal volume, however, came from smaller banks joining forces.

In fact, more than four out of five (84%) of deals announced early in the year were valued at under $1 billion, but this is expected to shift as interest in regional bank consolidation gains momentum.

Fintech and payments companies also saw a rise in deal activity, and financial institutions continued to seek buyers for non-core assets as they focus on investing more in their main business areas.

As the US moves past uncertainty from tariffs and other policy changes, bank mergers are expected to pick up. In particular, PwC points to signs of growing momentum, including a renewed focus on strategic mergers and acquisitions.

Banks that plan ahead, act decisively, and execute well, especially when it comes to integration, are best positioned to deliver strong shareholder value and stay competitive as the market continues to consolidate, according to PwC.

In addition, while the new administration has taken some of the deregulatory steps dealmakers expected, it’s also being more active in areas like antitrust. Although not a direct boost to deal activity, PwC says recent moves by bank regulators are helping to remove barriers that may have slowed mergers in recent years.

Dan Goerlich, US banking deals leader at PwC, said: “We expect increased banking deals activity in the remainder of 2025, as the regulatory and policy environment stabilizes and financial institutions focus on core businesses.”