Banking industry update: IPOs, M&A, Charters, Failures, Activism, and AOCI

This episode reviewed recent data for bank IPO’s and capital raises, M&A activity, new charter requests, FDIC problem bank list, recent bank failures, the return of shareholder activism, and the impact of rising yields on accumulated other comprehensive income or AOCI. Capital raises through preferred equity (IPOs) picked up in the second quarter of 2026, but subordinated debt and senior debt are still the preferred vehicles. Bank charter applications hit 33. M&A activity has picked up with 98 deals so far in 2026. The number of banks on the FDIC’s problem list dropped to 47. The number of bank failures in 2026 increased to 5. Rising yields put pressure on AOCI causing the banking industry total to decrease to negative $156 billion. The easing regulatory environment coupled with the increase to M&A is bringing a new wave of shareholder activism to U.S. banks. This episode reviewed multiple articles from S&P Global Market Intelligence (subscription required).