Fifty-two U.S. bank deals were announced in the third quarter of 2025, marking the highest quarterly number of deals since the third quarter of 2021, when the industry disclosed 59 transactions. The aggregate deal value of $16.63 billion for the quarter is also the largest since the fourth quarter of 2021, when $25.26 billion worth of deals were disclosed, according to S&P Global Market Intelligence data through Sept. 30.
Largest deals
Three of the 20 largest deals in 2025 were announced in September.
About 79% of September's aggregate deal value of $5.11 billion is attributed to Pittsburgh-based PNC Financial Services Group Inc.'s $4.04 billion acquisition of Lakewood, Colorado-based FirstBank Holding Co. The transaction had a deal value-to-tangible common equity ratio of 234.2%, which made it the most expensive US bank M&A deal announced since the end of 2021.
Through the third quarter, the transaction ranked as the second-largest US bank deal announced in 2025, but that will change as the fourth quarter has already seen the Oct. 6 announcement of Fifth Third Bancorp's $10.91 billion deal for Comerica Inc.
Texas remains the most targeted state
On Sept. 15, Greenwood Village, Colorado-based National Bank Holdings Corp. announced the acquisition of Dallas-based Vista Bancshares Inc. for $368.8 million, making it the 11th-largest US bank M&A deal in 2025 through the third quarter. The deal, which surprised some analysts who had different outlooks for the buyer's and seller's futures, carries a termination fee of $15 million.
The transaction marks the 14th target bank headquartered in the Lone Star State in 2025, maintaining Texas' position as the most-targeted state in the country.
Second bank deal announced in Washington
On Sept. 25, Olympia, Washington-based Heritage Financial Corp. announced the $176.6 million purchase of Port Orchard, Washington-based Olympic Bancorp Inc. The transaction had a deal value-to-tangible common equity ratio of 151.3%, making it the 20th-most expensive US bank M&A deal announced in 2025.
The transaction features the second target bank headquartered in the Evergreen State this year.
Bank M&A in Washington rebounded in 2024 when five deals were announced in the state, marking the highest annual total since 2018, when the same number of deals were also announced.
Bank deals by region
Among the M&A deals announced in September, three target banks are based in the Midwest.
On Sept. 2, Wichita, Kansas-based Equity Bancshares Inc. announced its acquisition of Omaha, Nebraska-based Frontier Holdings LLC for $122.5 million. The transaction marks Equity Bancshares' second bank buy in 2025 after its acquisition of NBC Corp. of Oklahoma, which was announced in April and completed in July.
On Sept. 25, Muncie, Indiana-based First Merchants Corp. announced the purchase of Jeffersonville, Indiana-based First Savings Financial Group Inc. for $240.8 million.
Another three deals announced in September target banks based in the Northeast: Quakertown, Pennsylvania-based QNB Corp.'s $39.1 million acquisition of Limerick, Pennsylvania-based Victory Bancorp Inc.; the $26.0 million merger of equals of New York-based Ballston Spa Bancorp Inc. and NBC Bancorp Inc.; and Harrisburg, Pennsylvania-based Mid Penn Bancorp Inc.'s $98.8 million purchase of Mount Laurel, New Jersey-based 1st Colonial Bancorp Inc.
The Midwest is the most targeted region so far this year, being home to 50 target banks, followed by the Southeast with 24 target banks.
M&A outlook
Bank M&A was a key topic during in-person meetings between Hovde Group analysts and primarily bank-focused institutional investors.
Investors were particularly interested in where potential partnerships could take place in light of the recent improvement in valuations and the possible market disruption opportunities stemming from large M&A deal announcements, the analysts wrote in a Sept. 29 industry note.