2026 Bank M&A Survey: Improved Pricing Brings Sellers to the Table

Deposits are a motivating factor behind acquisitions in this year's Bank M&A Survey, and prospective buyers are willing to pay up for ideal targets.

NASHVILLE, Tenn., Nov. 18, 2025 /PRNewswire/ -- Today, Bank Director, the leading information resource for directors and officers of financial institutions nationwide, released the results of its 2026 Bank M&A Survey, sponsored by Crowe LLP. The survey suggests an uptick in conversations between prospective buyers and sellers as pricing expectations begin to align.

According to the survey, 37% of bank executives and directors report that another financial institution expressed interest in acquiring their bank in 2024 or 2025, up from 27% who said the same a year earlier. Potential buyers may be more willing to pay higher multiples, too, which could bring more sellers to the table. Sixty-eight percent say they would be willing to pay 1.5 times tangible book value or more for a target that meets their criteria, compared with 54% who said the same a year ago.

"After an anemic three years, deal activity in the banking sector has ticked up, particularly in the third quarter," says Emily McCormick, vice president of editorial and research at Bank Director. "If sentiments around price are more aligned between buyers and sellers, that hints at more dealmaking over the next few quarters."

Among respondents who are active buyers or open to acquiring, 41% cite a desire for low cost deposits as a primary motivation, up from 29% a year ago. Respondents also cite geographic expansion (41%) and scale to drive technology and other investments (38%) among the reasons M&A factors into their strategy. Prospective acquirers name pricing expectations of sellers (74%) and a lack of suitable targets (71%) among their top barriers to M&A.

Funding costs, rather than slow loan growth or regulatory compliance, remain the No. 1 obstacle to profitability, according to 61% of bank leaders. "Something common that we're hearing in the industry is, 'How do we attract and retain depositors?' and 'What's the value in a strong deposit book?'" says Patrick Vernon, strategy and transaction advisory partner at Crowe. "There aren't really effective ways to go out and get a large number of deposits in the market right now if you're not considering M&A."

Bank Director's 2026 Bank M&A Survey Key Findings:

• Boardroom Discussions: Forty percent of survey respondents say their board discusses M&A on a quarterly basis, while 28% discuss it yearly. In those discussions in 2025, boards focused on M&A in the context of overall strategy (73%), potential targets (65%) and M&A trends (58%).
• Angling For a Better Price: Forty-four percent say they could grow fee-generating businesses in order to get a better price in a sale. Twenty-nine percent see a need to reduce their concentration of non-core, higher cost deposits, and 19% could renegotiate key vendor contracts.
• Mixed Plans on Subordinated Debt: Of the 21% who report their bank has subordinated debt set to mature or reset in 2025 or 2026, 31% have not yet decided how they want to address it. Others plan to raise new debt to replace it (23%), let the interest rate float (23%) or use existing capital to call the debt (23%).
• Organic Growth Drivers: Respondents largely expect commercial real estate (67%) and commercial and industrial lending (65%) will fuel organic growth in 2026. Additionally, 38% expect growth from fee-driven businesses, such as wealth management and treasury management.
• Limited Interest in Crypto: Just 21% say their institution is looking into providing crypto or digital asset custody services, while 44% have not even discussed it, despite new guidance from federal banking regulators in July 2025.
• Optimistic on the Economy: Fifty-seven percent anticipate that the U.S. economy will grow at a moderate pace through the end of 2026, while 15% anticipate a downturn or recession.

Bank Director's 2026 Bank M&A Survey provides valuable insights into the motivations and expectations driving bank dealmaking. To view the full report and additional findings, please visit BankDirector.com.

About Bank Director
Bank Director reaches the leaders of the institutions that comprise America's banking industry. Since 1991, Bank Director has provided board-level research, peer insights and in-depth executive and board services. Built for banks, Bank Director extends into and beyond the boardroom by providing timely and relevant information through Bank Director magazine, board training services and the financial industry's premier event, Acquire or Be Acquired. For more information, please visit BankDirector.com.

About Crowe LLP
Crowe LLP is a public accounting and consulting firm that uses its deep industry expertise to provide audit, tax, and consulting services to public and private entities. Crowe is recognized by many organizations as one of the best places to work in the U.S. As an independent member of Crowe Global, one of the largest global accounting networks in the world, Crowe serves clients worldwide. The network consists of more than 200 independent accounting and advisory services firms in more than 130 countries around the world. Its banking-focused team of 1,200+ professionals has more than 50 years of experience, works with financial institutions of all sizes and serves over 2,700 financial services organizations. For more information, please visit www.crowe.com/banking.

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For more information, please contact Bank Director's Marketing Associate, Emma McMillan-Zapf, at [email protected].

SOURCE Bank Director