Bank Director's 2026 Governance Best Practices Survey: M&A, Artificial Intelligence Drive Boardroom Change

Bank Director's 2026 Governance Best Practices Survey finds boards adding new skills and rethinking policies and oversight.

NASHVILLE, Tenn., July 28, 2026 /PRNewswire/ -- Today, Bank Director, the leading information resource for directors and officers of financial institutions nationwide, released the results of its 2026 Governance Best Practices Survey, sponsored by the law firm Bradley Arant Boult Cummings LLP. The survey highlights how bank boardrooms are adapting to a wave of merger activity and the growing influence of artificial intelligence, as boards work to ensure their composition and oversight practices keep pace with an evolving landscape.

The survey finds an increased percentage of boards with M&A expertise, at 44%, up 10 percentage points from last year's research. The number of deals climbed last year due to quicker regulatory approvals and improved valuations.

Artificial intelligence is emerging as a defining governance challenge, with 21% of respondents reporting that their board includes a director with AI expertise. Almost half say AI risks are discussed at the full board level, and 60% report that their board has adjusted policies, reporting or oversight related to the use of AI. Yet 21% say AI risks are not overseen by the board at all.

"Governance by the board of directors of the bank is the backbone of that institution," said Robert Maddox, partner and chair of Bradley's banking and financial services practice group.

Looking ahead, boards must also prepare for the next generation of directors. Fifty-seven percent of respondents expect one or two directors to retire through 2027. Most boards continue to rely on directors' (83%) and executives' (70%) personal and professional networks to recruit new talent.

"Boards, especially governance/nominating committees, should regularly discuss the skills and backgrounds needed to oversee and support the bank's future direction," says Emily McCormick, vice president of editorial and research at Bank Director. "As those necessary skills continue to evolve, board leaders will need to be intentional about recruitment. That could mean looking outside of directors' usual channels."

Bank Director's 2026 Governance Best Practices Survey Key Findings:

• AI in the Boardroom: A minority report using AI to prepare meeting minutes (26%), transcribe board discussions (22%), compile the board book (22%) or examine bank performance (22%).
• Virtual Attendance: The vast majority (87%) allow directors to attend board and committee meetings virtually, with few placing formal restrictions on virtual participation.
• Board Assessments: 39% conduct an annual board assessment. Of those, 59% report meaningful changes as a result, including revisiting the strategic plan (56%), adjusting the meeting agenda (51%) and restructuring board committees (51%).
• Policy Review: More than half of respondents have adjusted policies, reporting or oversight in key areas since January 2025, including liquidity planning/monitoring (64%), asset quality/credit monitoring (61%), the use of AI (60%), asset/liability management (60%), BSA/AML compliance (56%) and capital planning (55%).
• Debanking Scrutiny: Just 20% of respondents have examined whether their institution could be subject to scrutiny for debanking activity, the denial of banking services based on religious beliefs, political views or other affiliations.
• Strategic Planning: More than half say the board establishes the bank's risk appetite with management developing and the board approving the plan. Many see room for improvement, including better measurement and monitoring (44%), a greater understanding of banking's future (39%), more creative thinking and debate (34%) and stronger competitive analysis (33%).

Bank Director's 2026 Governance Best Practices Survey provides valuable insights into the fundamentals of board performance, including board composition trends, AI oversight, strategic planning practices and director recruiting. 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 Bradley Arant Boult Cummings LLP
For over 155 years, Bradley has combined skilled legal counsel with exceptional client service and unwavering integrity to assist a diverse range of corporate and individual clients in achieving their business goals. An Am Law 100 firm with 13 offices in Alabama, Florida, Georgia, Mississippi, North Carolina, Tennessee, Texas, and the District of Columbia, Bradley's more than 750 lawyers represent regional, national and international clients in various industries, including banking and financial services, construction, energy, healthcare, life sciences, manufacturing, real estate, and technology, among many others.

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

SOURCE Bank Director